Many Important Reasons to Save and Effects of Accumulating Enough Money Savings in Life
Have you ever ask yourself, how important is money savings, that how it may impact the upcoming of your life journey! Without a doubt, any kind of lifestyle needs some sort of money, big or small! Getting back to money savings senses, there are many reasonable reasons to save, for emergency use, to reach different financial objectives, and target, but one of the most obvious one, is what our country Malaysia and other parts of the world are experiencing, the worst pandemic due to COVID-19. How prepare are we in term of cash reserve capacity and our savings to sustain this life catastrophe?
Financial Saving Duration By Employment Status
A special survey conducted by Department of Statistic Malaysia (DOS) on the effect of COVID-19 on 18th March to 31st March 2020 during the Movement Control Order (MCO), revealed a stunning information on the financial saving duration by employment status as below.
More than two-third (71.4%) of self-employed respondents have sufficient savings for less than 1 month
A staggering 77.2 per cent of employers and 82.7 per cent private employees have sufficient financial savings up to 2 months
Some 78.9 per cent of Government Link Companies (GLC) employees and 75.2 percent of Multinational Companies (MNC) employees have sufficient financial savings up to 4 months
Do not save what is left after spending, but spend what is left after saving
Find out how HR automation task solution create opportunity for organisation to realign to capture impact and embed new capabilities
FREE Efficient Money Savings Budget Simulator!
How much money savings do you wish to have monthly and how you can reveal your TRUE hidden potential money savings to ride on this opportunity to multiply enough money? To try on the financial money savings simulator here, you will first need to DOWNLOAD it using the button below. To gain access to the download, you will need to subscribe to Profound Information Money Tips email list by using form below. As a subscriber you will be First to be notified of NEW post practical knowledge and useful money management, secondary source of income, real passive income, early & private retirement income.
Are You Ready to Face Uncertainty in Term of Finances?
Most people will tend to ignore the financial puzzle in life! Most will follow their “gut-feelings” at the present moment, to bewiled oneself about the future. It is a truthful complex scenario to accept the fact of life, that resulting in NOT doing anything, even though when they see the “breaking out” information passing thru their eyes. One cannot understate the important of savings and the effects on the individuals. Want to know more on the fact about the survey on the average saving readiness duration on average working Malaysian, let me break this down for you..
Savings Readiness Duration by Employment Status and Service Years
Through the astounding discovery of survey results on the savings readiness duration by employment status and service years conducted by special DOS survey, also reveals that the longer the employee has been working, the more ready he or she is in terms of savings. Is the era of high savings concept has gone away, due to the many disruptions, the massive technology innovation that leads to an invention of electronic gadgets, smart phone, tablets and the habits of lavish spending to fill our desire, forming of a new consumerism habits.
From the survey, it discovers the facts below :-
More than 69.7 per cent of those working less than 1 year and 63.2 per cent of those working between 1-3 years reported that their financial savings will run out in less than 1 month respectively
Indicates that 25.4 per cent of those working 4-10 years and 27.5 per cent of those working 11-20 years have sufficient savings only up to 2 months
Meanwhile, 11.4 per cent of those working 21-30 years and 11.7 per cent of those working over 30 years have sufficient financial savings up to 4 months
The Truth of Financial Reality Bites!
Hope the above survey may awaken us of the financial reality, opening the truthful fact of life, provides us a glimpse of the reason to save and not to understate the important of action to save money. The concept of saving money is indeed a best cultivated financial habit, one can ever adopt! It is a difficult habit to cultivate but if one conquers oneself then it will be a total victory towards financial independent! If one might still not convince, it is natural to explore further, why it is important to save, you are at the right place!
To help show you more reasonable reasons to save, let me break this down for you…
The concept of saving money is indeed a best cultivated financial habit, one can ever adopt!
Find out how Business process digitization solution create new opportunity for organization to realign, to capture impact and embed new capabilities
Mobility & Visibility
If business process mobile app can control and provide mobility and visibility of the important core business process, inventory, sales, purchase information, financial, specific cost & labour process, by now, you’ll have realized the impact of digitized business process.
If in all type of industry, in essence, productivity, efficiency and profitability are your long-term goals, ask yourself how you can use business process mobile app combine with enterprise resource app to improve your business strategy and produce great revenue.
Rising Life Expectancy in Malaysia
Based on the period data for Malaysia from 1960 to 2018 from World Bank Malaysia on life expectancy, the average age value for Malaysia during that period was 69.61 years with a minimum of 59.99 years in 1960 and a maximum of 76 years in 2018. The latest value from 2020 is perhaps 80 years. The longer one person lives, the more saving funds are required when maintaining the lifestyle habit. Saving for retirement is definitely something that many people does not want to think a lot and many people would like to enjoy their lifestyle now and let the future solve by itself! What do you think, well there is neither right nor wrong!, it is a person own choice..
One of the crucial points to sustain a good long life expectancy is building a life satisfaction journey, building a different life objectives and purposes, a sustainable money savings and a new refined life with a clear purpose of financial target aligned with a proven financial planning platform to multiply money savings to a resourceful pool of wealth. But before that let’s explore the different financial targets.
Let’s explore together!..
Different Financial Targets and Goals
Own a Dream Property
Financial goal varies from individual to individual. Some young people save money to prepare for their dream wedding. Youngster saves for dream second private property, so during MCO they can stay safe at home, either owning a condominium or landed house, depends on the region you stay such as in Kuching, Miri, Bintulu, Kedah, Kota Kinabalu, Selangor, Kuala Lumpur, Johor Baharu, Malaysia.
Save to Buy Car, Children Education and Dream Vacation
Certain people save to own comfortable car and for children education. There are some adventurous people who save to have their dream vacation such as going for Europe continent tour, pilgrimage and to city of love Paris!
Charity Fund to Help People
Charity fund to assist people through the fruit as a result of higher rate of return from the multiplication from money savings. Yet many successful people with great heart, have sweet intentions to give charity in money resources to help individual, who has great potential to succeed, but don’t have money resources to reach their objectives and purposes in life. The charity fund can be outreached to social welfare organization, church organization, who helps the local resident from the different background and works of life, poor and needy people at rural area. And the lists of reason to save goes on..
Twenty years from now you will be more disappointed by the things you didn’t do than by the things you did
With a few astounding and good reasonable reasons to save been revealed so far, it perhaps will lead a better realization in the quest of building up of sufficient money savings. One of the ways to ensure a successful cultivation and preservation of a stable lifestyle in a higher life expectancy scenario in a human lifespan as shared previously, is to find logical ways to overcome finance hurdles, when unexpected event happen, availability of the of Emergency fund, let me elaborate further below.
The Term Emergency
Why do you need one? The term Emergency – can be any broken body parts! to job layoff, car breaking down, are a fact life. When you are faced with unplanned and accidental life event, you can be ready. An emergency fund is a piled of cash set aside to overcome unforeseen life even that comes gushing in our life!..this event can be stressful and costly.
- Medical emergency
- Job layoff
- Car repair cause of breakdown
- Unexpected house repair
Lower Down Stress
When life situation presents an emergency scenario, it affects the states of our financial well being and create stress. When you live without financial safety net, you are living by the financial cliff, hopping to live thru the day by day without crisis, do you think life is that a smooth sailing?..
Sense Of Confident
With the saving of emergency fund, it creates a sense of confident, that you can overcome life of unforeseen event with less of the need to worry. Ya, we can still worry about other secondary event, children university placement, what makes us truly happy! How to live a healthy and long life, what constituent a fulfilled life, a meaningful life?.
You don’t have to see the whole staircase, just take the first step
Martin Luther King. JR.
Do You Wish to Have a Dream Lifestyle With a Successful Well Being and Best Enjoyments
Every Individual Desires Lifestyle Leads to a Freedom of Life
Every individual has a dream to live a lifestyle leads to a freedom of life and not to forget to include financial freedom and ability to take frequent time off, spending countless time on doing what he likes and passionate about. With the amount of money savings accumulated, regardless of what is your financial savings objectives, there must be effective and tested ways or mechanisms to multiply the money savings to achieve multiple fold pool of money and reaching your financial goal faster! than having it placed in savings account or fixed deposit.
The Starting Point of the Envision Unique Lifestyle
The truth is, in reality it may be hard for normal salary earner people to accomplish financial objectives but it is not impossible, chances are that the dream lifestyle can become a reality, creating a true unique lifestyle for every person. The generation of millennial can be the starting point of the envision lifestyle, but with the correct financial planning, anyone with any kind of age can achieve it!, and how do I turn the dream into a reality lifestyle?
Rethinking and Reinventing of Your New Lifestyle
The disruption is the starting point, whether you desire it or not. It is not a choice but rather, means in breaking old habits and rethinking outdated mindsets. This refers to rethinking and reinventing of your lifestyle through the new ways of living that focus on nothing, but creating value in every aspect of your life. Besides the role of increasing quality of value of life inclusive of financial readiness, we also need to be aware of the factor that can degrade the value of the accumulated money savings, inflation. It is just part of a pre-existence condition of a fulfilled life and the other important part of the disruption is the realization of feel necessity for financial targets or objectives through a demonstrated established financial planning platform, aiming to a creation of pool of money savings that will “sustain” the new lifestyle!.
There are far, far better things a head than any we leave behind
C. S. Lewis
Courageous Self Initiatives Steps
- Collaborated Action
I have shared a few good and strong compelling reasons to start saving, with a natural instinct in one person, one will definitely look for a most effective and fastest ways to start saving. Having a good saving plan begin with a good financial planning and management, simple money management concept, which also will lead oneself to begin a quest searching for different methods to multiply money savings for faster accumulation of pool of money, which will leads you to introduction of risk and rate of returns. What is your simple reason to save and how having sufficient savings will impact your financial life well-being? I would love to hear from you!.
Knowledge on Private Retirement & Unit Trust Concept
Finance Technology Blogger
Being an engaging and a passionate next generation contemporary finance technology blogger, I welcome you and THANK you for being here on this blog page Profound Information presenting money senses, the concept of financial planning and financial independent retire early (F.I.R.E) with the proven record of the projected passive income, paring with regular money withdrawal plan, blending with a powerful action plan coupled with the basic knowledge on the different asset classes in unit trust composition, growth and money management.