Ideas for your 2021 New Year’s Resolution

Around this time of the year, many people start to make resolutions – things they want to start doing or stop doing, to improve their life. It is not uncommon for saving and investing more to be in people’s top five resolutions. 

Not sure what your new year’s money resolutions should be? Here are some ideas. 


Commit to paying yourself first 

When you get your paycheck, many people often spend first and then save what is left over. The problem with this is that it doesn’t guarantee any regular savings; your savings could become dependent on how much you spend each month (and often in an unplanned fashion). 

In 2021, strategically pay yourself first by setting aside a fixed percentage of your income towards saving and investing (for example the 20% from your paycheck), and then spending with what is leftover. 

If this is your resolution, then automation is your friend. You can set the money straight out of your spending account before you have a chance to spend it. Setting up a recurring deposit into your Raiz account is one way to do this. 


Create (and stick to) a budget 

The problem with most budgets is we often become disengaged with them, leading us to stray from their guidelines. A simple 50/30/20 budget can be a good strategy to start with budgeting since they are relatively straightforward and easy to follow. 

It’s simple in principle and practice: 

  • Use up to 50% of your income for what you need
  • Allow for up to 30% to spend on the fun stuff 
  • Save 20% for a rainy day, investing or your savings goal (like buying a house). 

These numbers are not necessarily fixed; however, they provide a strong foundation for building healthy financial habits to help you achieve your goals. 


Choose a savings goal and start working towards it 

The previous tips are good behavioural changes to help you start managing your money better and saving more. However, it’s also good to have a goal to work for it. Some common savings goals you could consider are: 

  • Build an emergency fund – 2020 has shown us why having one of these can be so important. 
  • Save for a holiday – We all need one after 2020, fingers crossed more travel locations become available in 2021. 
  • Save for a house deposit – Buying a house is a big financial life decision. If you’re planning to buy in the future, the best time to start saving is now. 
  • Pay down any debt you have – It is simple, debt is not your friend if you’re trying to save. 
  • Save for retirement – If you don’t have any immediate money goals that come to mine, it’s generally a good idea to continue building up your retirement savings. 


Challenge yourself to save RM1,000 in a year 

RM1,000 sounds like a lot, but for a year, this isn’t too difficult to achieve. We all like a challenge to get fit, lose weight or to meet another goal. Saving and investing is no different. 

If you save just RM20 per week, you’ll put away RM1,040 in a year. If you have not already set up a recurring deposit or savings goal with Raiz, then setting one up and investing RM20 weekly into your Raiz account could help you achieve this.


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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. 

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