Unfortunately for us, the Fixed Deposit (FD) rate has gone down so much that we no longer get even a 2%…unless we save for 6 months or higher. By the way, even if we save RM1,000 for 365 days, we will only get RM21. Erm… not enough for even one Starbucks latte and one slice of cheesecake! That’s after one whole year of NOT touching the money at all. Else, we may just get nothing. Take a look at Maybank’s rates then.
Okay, good news about low interest rate is that if you own a home, you will also be having to pay a lower instalment per month and that’s a lot of savings! In fact, it will usually be more than what we earn from FD. The reason is simple. How many of us have RM500,000 in FD in the bank? I could think of a few friends who may have that. However, if we are thinking about a home loan of RM500,000 or higher… wow, that one I have many friends who have that!
Now, how about if we dream a bit but still be pretty conservative in what we could still be able to do? RM500 savings per month, can? For the next 30 years… can? Here’s what you will be having at the end. More than enough for a vacation right after retirement and then use the remaining amount and not needing to touch the EPF savings until much later. If you agree, than start saving lah. Time waits for no men and money grows slowly over time… I use 3% because I think over the long term, this is a more reliable number versus 2% or even 4%. Just my thought okay, everyone has their own thoughts!
Some may want to say but… RM300,000 is not a lot. Very true actually. However, our very own Employee Provident Fund says that Malaysians should at the very least have about RM228,000 in their account when they retire at 55. So, assuming you really do have RM228,000 when you retire and you have this extra RM292,000 in the bank. You have just become HALF-millionaire. Happy saving lah. Just remember that all these are just savings. Learn a bit and invest too. That’s how we will have more. Want more tips? Read kopiandproperty.com lah.
Next suggested article: Too lucky is highly unlikely. Savings have all been lost.