Tips for Spending your Malaysian Ringgit Wisely

Tips for Spending your Malaysian Ringgit Wisely

As you age, you start to have piles of bills and lists of bigger expenses. As you start to become independent, you also begin to save for your own home, car, and other investments you personally deem important. You also start to set aside money in funds that you can use for future emergencies, and you begin to know the value of each Malaysian Ringgit.

Below are some tips on how you can spend your Malaysian Ringgit wisely and save money effectively:

1.      Modify How You Handle Money—Bit by Bit.

It may be hard to drastically change your spending habits since you are already used to spending your Malaysian Ringgit the way you have always done it. Try to change your money handling habits, bit by bit, by thinking of one specific habit you can modify a little. It can be changing a lifestyle habit such as not ordering add-ons like a hazelnut shot for your coffee, or not getting extra cheese for your pizza when you always order add-ons for your food or drinks. You may also try using cash for your daily expenses for a month so you can see how fast your money goes when you are not swiping your card. If you find this inconvenient, you can also try to monitor your daily expenses by using a mobile or handheld device app that tracks your expenses.

2.      Keep Track of Your Transactions.

Always check to see if your bank account and credit card statements are accurate. Save all the receipts or bills you get and verify if your transactions match the ones stated on your bank and credit card statements.

3.      Don’t Choose Deposits that Offer High Interest Rates.

Saving money is also about not wasting your money. In choosing a bank for your fixed deposits, steer clear of those that offer very high interest rates. You may end up losing more money to these interest rates if you don’t consider options with caution. So be careful in picking a fixed deposit account.

4.      Purchase Shares Online.

Another good tip in making money is to invest in shares. It is one way to earn through interest. This only works if you don’t touch the cash in the account. If you decide to buy some shares, make sure to get them online rather than from a broker. Getting shares online is usually cheaper and will give you more control over the shares you bought.

5.      Invest in Gold.

Invest in gold—not by purchasing gold but by buying gold exchange traded funds (ETFs). Investing in a gold ETF will ease your mind from that mild fear of you thinking your gold may be stolen, but it also allows you to earn income from the interest rate when the fund does well. Another benefit of investing in an ETF as opposed to purchasing actual gold is that you won’t get charged a wealth tax for it.

6.       Get a Credit Card.

Another way to ensure that you have spare Malaysian Ringgits in case of emergencies is to get a credit card. A credit card can be a safety net that you can use to pay your bills and other unexpected expenses when your salary is late or when payday is still weeks away. Also, you never know when you may suddenly run out of cash due to a family emergency or sudden illness or injury. In these cases, a credit card can ease your mind by providing you with the extra funds you need.
Practice at least one of these money-saving and money-making ideas once a day, and watch how your expenses dwindle as you become more aware of your daily transactions, and you start learning how to properly and smartly allot money for all your needs.

About the Author:
This article is prepared by Compare Hero for KLSE Malaysia Blog. Compare Hero is Malaysia’s leading financial comparison website. Users can compare a broad range of financial products side by side for free, thus enabling Malaysians be equipped with financial knowledge to make better financial decisions.