money

5 signs you’re not saving enough money

save money

Several incidents in my life made me realize that I have saved little or nothing at all in my little piggy bank and the saving account. I know I need to change my spending habits to get on track, at least to have enough money to cover any emergency.

Through my self-evaluation, A journey to freedom rounded up 5 warning signs that could indicate you need to start saving more.

1   I don’t have an emergency fund

Life doesn’t always go as planned.

Before I write this post, one of my family members had a medical emergency and needed immediate surgical intervention. This private operation costs more than RM50k (about USD13k). Luckily, my parents have enough saving and were able to pay for it. However, if this happens to me, I can’t. I don’t have even RM3k in my total saving.

The idea is that, if an emergency or unexpected big cost arises, for example, my car breaking down, I would have to go into more debt or not able to pay for it.

Thus, it is important for me and you to start to build our safety net.

fisherman, safety net
build yourself a safety net

2  I’m living paycheck-to-paycheck

If you are living paycheck-to-paycheck, and can barely pay your bills each month just like me, it is nearly impossible to build up substantial savings.

When I’m staring at my little piggy coin bank, I decided to find several ways to increase my income or spend less. I would like to start a side hustle or establish the passive income to boost my earning potential.

paycheck
don’t depend on your monthly paycheck

3   I have no idea how much I spend

I have a good idea of how much money is coming each month because it’s kind of fixed. But how much is flowing out, toward expenditures like food, movie, hang out and etc.? I have no idea. A few years back, I actually write down my expenses in a notebook to track my family’s expenses. However, I a bit lazy and can’t maintain this habit until I stopped recording my spending in the end.

I think you and I should start it again to find ways to cut back our spending.

writing
track your spending consistently

4   I don’t have saving goals

I used to have saving goals and wrote on a fake cheque. I lost it when I move into my new house. That goal is a rough idea of how much I would like to have in X year. It is not precise because I don’t know exactly what I want my future to look like.

Now, it is time for you and me to come up a saving goal, and start setting aside a certain amount each week or month.

target
set your saving goals

5  I don’t have sufficient cash on hand

After paying my study loans, housing loans, mobile data subscription and etc. using my salary, I have less money leftover in my bank. After setting aside some amount for saving purpose, I have even less money now. Although I have quite a lot in my EPF (Employee Provident Fund), I can’t simply withdraw any from EPF before I reach the age 50 [In fact, this EPF withdrawal T&C is good for you and me to secure my retirement].

Now, I left less than RM2000 each month. If any costly emergency arises, the only thing I can do is, ASK FOR HELP. I don’t want this to become REAL!

Last but not least, throughout the journey to freedom, I will be going to record and share how I am going to make my life FREE. The first thing I must do is,

cash on hand

SAVE ENOUGH MONEY! 

What do you think about saving money? Share your thoughts in the comments below!

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