by David Blog
Everybody needs to save money for the future. Thus most of us will try to save money by putting into our savings and currents account. But did you know this is not the most optimal way to do so? Here are 4 ways on how you can maximize your saving’s efficiency!
Get a forced savings plan
When you save in your bank account, RM500 in 20 years will still be RM500. But most banks will offer a forced savings plan. How it works is that every month you put in RM500, and it will be pooled together with other people’s money to be invested. Within a few years, your RM500 can potentially grow to more than RM1000. So with a few years commitment, you will effectively double or triple your savings! There is a bonus as well, most forced savings plan also have insurance elements in it, so you are secure if anything happens to you!
Put into EPF
With EPF, you get an average of more than 6% per year in compounding interest. That means every year your total money grows by 6%. The more money you have in EPF, the more money you have in your future!
Invest in Unit-Trust
Unit-Trust is similar to how a forced savings’ plan works as it also pools a lot of people’s money together to go and invest. The difference is that for unit-trust, it is easier for you to take your money out anytime!
Fixed Deposit
If you have more than RM10,000, you can consider putting it into a fixed deposit account. There are usually 3, 6 and 12 month packages, so you can put your money in there for the duration and earn a % of it after the maturity date. Some banks will offer promos for FD up to 4%!
Diversify
If you have more money, you can invest in all of the above, and diversify. Which minimizes the risk of losing your money and maximizes the money gained from interest from more than 1 outlet!