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Normandy Advisory Services Sdn. Bhd (Licensed Investment Advisor)
15th Floor Menara Multi-Purpose, No 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur
Tel : 03 - 469 5560 Fax : 03 - 294 5561

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Savings are very often linked to future security. Many people save for their future. The sooner you start the better. But there are young and single people who very often downplay the importance of savings. Younger people tend to spend more as compared to the elders. They are more inclined to spend their money freely making good living.

There are many reasons on why you should save during the early days. Wealth accumulation for comfort during your older days is likely the most important reason. Before thinking of financial planning for yourself, ask yourself;

1. A I earning enough for retirement?
2. Am I getting the best out of my current investment (if any)?
3. Am I getting the most out of my bank deposit rates?
4. Am I achieving real growth over inflation on every single cent that I earn?
5. Do I have enough insurance coverage?
6. Will the future of my family be protected if there anything were to happen to me?
7. Will I be protected in the future if I become disabled?

If your answer to any of the above questions is "no" then you should sit down and start planning now. If your basic income is RM500 per month, then an extra RM50 will likely make a huge difference to your eventual happiness. Below are simple tips for an effective savings game plan.

It is more effective to start saving for your future during your younger days. Why is it so? Our savings power is generally greater during this period of time. Once we assume the responsibility of family life, mortgage and education expenses for children, it can be years before we are in a position to generate savings power. By that time, it might just be too late for us.

In order to generate adequate income at the end of an investment period, you should be patient and not to resort to fast money. Remember that you can only built solid gains over a longer period of time. Try calculate this, the difference between investing RM1000 compounded at 10% over 5, 10 and 20 years.