Like most people, my all time favorite sitcom has always been Friends. I remember vividly in one of the episodes, where Monica just got laid off from her job and has no money left for daily expenditure. She turns to her brother for help and he suggested asking their parents.

To cut long story short, in one of the scene the father said to her, “I always teach my children to keep 10% of their salary aside for saving”.

With the power of Television subliminal effect, that particular statement has stuck in my mind until today. But, the real question is – How do you discipline yourself in keeping ten percent of the salary for saving every month?

The most effective way for me to really keep aside certain portion of my salary is by fully utilize the Internet Banking.

How to get it done?
My monthly salary is credited into the RHB Bank account. And I have the RHB internet banking to conveniently check on my account online. Okay, the first way to start saving is basically transfer the money out from your credited account to some other own account.

For me, I created another RHB Saving Account. This newly created account, however, is not listed in my internet banking. I have to specifically tell RHB people not to link it with my online banking. The reason behind is, the more difficult for me to access that account, the better for the money to stay put.

The next thing is to set scheduled money transfer. I chose to transfer money to my other account on weekly basis with recurring instruction option being enabled. All this can be done within the online banking. I assume most online banking portals have this feature if not one. By transferring the money weekly, I won’t see much money deducted hence lessen the feeling of sudden money cutback in my main account.

Saving Habit

Start with a comfortable amount.
Initially, I only have the capacity to save RM5 per day (RM35 weekly and RM150 monthly) without vigorously affecting my monthly spending lifestyle. While it may sound too little, but that really helped me to jump start a saving tendency. However, it has grown to certain amount today.

There you go. This is how I quietly forced myself to save on monthly or rather weekly basis. The magical about this is that it’s not necessarily that you have to save a big chunk amount daily. Even RM1 would do just fine. Once you are more comfortable with the situation, then maybe you can increase the amount to more contended number.

Also, it may be a good idea to take the saved money on every month and place it into Fixed Deposit or any other financial instruments you feel best. I myself, every once or two-month, will withdraw the saved money and put in ASB which yields a constant return of 8-12% yearly.

To summarize:

  • Create another account within the same bank. Ensure this account is far from your easy reach.
  • Decide how much is comfortable enough to put aside for saving. If not sure, start with RM1.
  • Log into online banking. Schedule an automatically recurring instruction to transfer certain amount to the new account.
  • After certain period of time, take the saved money and invest it to a higher return financial program like FD or UT.

I’ve learned it.

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