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Saving can be tough in this current environment, but that doesn’t mean you should give up on building a financial back up for you and your loved ones.

While growing your savings surely takes a large effort, there are some simple ways to start on the path to financial security.

1. Get on top of your budget

There’s little chance you’ll be able to save much money if you’re not keeping good track of your cash. Therefore, it’s important to create a budget — and stick to it.

When it comes getting your budget started, kick things off by looking at your income and expenses. Once you’ve established your income —your salary and other types of money gains — figure out what you’re spending that money on. This includes fixed costs like rent and food as well as optional spends such as entertainment and non-essential shopping.

2. Cut your expenses where you can

There’s no point in just knowing where you’re spending your money – that’s only half the battle. The key is cutting spending so you can allocate more money to your savings. Although depending on your situation during the current economic environment, it may be a much harder time than usual to do this.

Some common strategies include seeking out better deals on your regular payments — things like phone bills. It could also pay off to switch to cheaper brands of clothing and food or cut down on under-utilised subscription services like Netflix.

3. What about investing?

The Raiz Philosophy is to invest small amounts regularly, even in falling markets as this can help you to ride out the downturns in the market and is one of the keys to having a healthier balance over the long run. This principle is known as Ringgit Cost Averaging.

Compounding happens when you let the returns on an investment build up so that you are earning a return on your return. Given enough time to work its magic, it provides the potential to reach a stage in your life where your money is working hard enough to provide a substantial part of your income.

4. Build an emergency fund

Building your savings should be about achieving your financial goals, but don’t forget to also prepare for when times get tough – the current coronavirus pandemic for example. This is where an emergency fund can be super helpful. Click here to learn about the 3 steps to build up your emergency fund.

Depending on your situation, you may need to build a big emergency fund or one that just needs to get you through a few weeks without a regular income.

Whatever you may need money for down the track, it makes sense to prepare for a financial back up in order to soften the unexpected bumps along the road.


Don’t have the Raiz App? 

Download it for free in the App store: 

Important Information 

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. 

The information on this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. 

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. 

The past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance. 

It’s more important than ever to have emergency savings. Let’s do it.

  1. How much do you need?

It’s important to build up an emergency savings fund to prepare for the unexpected, whether that’s your car breaking down or a drop in income. A rough guide for the ideal sum to have saved is the amount you’d need to cover three months’ essential outgoings. So, if you spend RM1,500 a month on mortgage or rent, food, bills and other things you can’t live without, aim for RM4,500 in emergency savings. But if this figure seems unrealistic, don’t be daunted by it. Even having just a small amount saved can help you avoid taking on debt if you face unexpected costs.

  1. How much can you save?

Work out how much you can afford to save each month. Go through your income and spending, there are many useful budget planners in app store (just search for “budget planner” for example).

See where you can cut back like if you can save on bills, for example, could you cut the cost of your phone bill by switching providers? This could be extra cash for your fund. Once you know how much you can afford to put away each month, try setting up a standing order that automatically puts money into your savings account each month to help you achieve your goal.

Try using less cash and instead more traceable sources such as debit cards, online banking and credit cards. This way you can monitor your money through statements and stay ahead of your finances.

  1. Remember, it takes time!

While you’ll want to get your emergency fund set up as soon as possible, like with all savings, it’s best to keep to what you can afford and make sure to save regularly.

Saving smaller but regular amounts are more effective than saving larger amounts now. This is because you get into the habit of saving and also avoid overcommitting too much. It can help you budget more effectively too. Or just save what you can as regularly as you can. Every bit of cash saved makes a big difference to your financial wellbeing.


Don’t have the Raiz App? 

Download it for free in the App store: 

Important Information 

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. 

The information on this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. 

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. 

The past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance. 

Hope you’re enjoying being part of Raiz. We also have a referral program as we would like to reward you for introducing Raiz to your friends.

For every active referral, both you and your friend will receive RM10! This offer will last until 30 September 2020.

Just make sure that they sign up using your unique link where you can find your unique link in the app at the bottom on the menu screen.

Home > Menu > Invite Your Friends

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31 Mei 2020

oleh Aidi Izham, CFP®, MIFP

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The distinction between rich and wealthy is that getting rich is just about the gathering of cash. It can travel every which way, and on the off chance that somebody who’s rich loses their cash, they may experience difficulty recapturing that or remaking once more.  

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