Layman’s Guide To Increase the size of your Savings account

Whether you are a top notch business man or you are just a 9-5 employee, there are some universal money saving rules that apply to all of us in general.

For whatever business you engage yourself in, wealth accumulation is your major priority and the easiest way normally is to save. When I talk about wealth accumulation I am referring to “you” first as an individual not your employees, C.E.O, managers… It may sound really selfish but the honest truth is that you will only attain your financial goals first then consider rewarding your subordinates right after.

We all get in to desired/undesired businesses with the aim of boosting or improving our wealth and income flow. First you take care of yourself then others, that is the motto of most businessmen. In order to achieve  this, one has to pay themselves first!

 Below are just three techniques to get you closer to your goal (saving):

  1. Pay yourself first before considering others.
  2. Refrain from using the acquired funds from above.
  3. Invest where funds will multiply.

Stocks_Rising_Money_GraphAll these look as easy as ABC! Just like a new year’s resolution, these three simple techniques are not so easy to apply. We are all humans and for that matter those with the greatest willpower will always come out on top. These techniques definitely require great willpower as simple as they may look.

Smart TVs, smart phones, fancy furniture, sports cars, expensive restaurants…are some of the many items we Malaysians splash our hard earned cash on. The question is do you NEED it? or do you WANT it?

Think about it, there are millions of gadget companies out there manufacturing the same appliances that all have the same functions. Armed with powerful marketing strategies, they try to make these gadgets so enticing and attractive so you can buy them with your hard earned money. This definitely negatively affects your bank account negatively hence less savings or none at all.

Next time you want to buy that new appliance, think twice and ask yourself if you NEED it or actually just WANT it. Fellow Malaysians, guard your wealth jealousy. Buy what will add value to your life not just luxurious items because all these will reflect on your account at the end of the day.

Be the first beneficiary, pay yourself first! Here is how best you can do it:

  • Open up a savings account then destroy the ATM card. Now you can start saving/depositing money on this account. Sounds like you are running mad? YEAH… but it sure works and it is effective. Every Time you think of the hassle you would have to go through just to withdraw the money, you will definitely opt for other ways to get money. Such hassles include the bank ques, Signing documents, filling up forms…
  • For this savings account, never register online banking. You would not like to have the purchasing power over the internet. Practically, anything can be bought over the internet nowadays. Buying things online can be enticing and much easy so refrain from registering this account for online banking.
  • It is better to have a joint savings account. This way the account would have two signatories. Should there be a withdrawal, both parties would have to be present so as to complete the transaction successfully. Withdrawal would definitely be much harder hence increasing one’s savings.
  • Ever heard of endowment policy? If you do not have the saving discipline and you need that extra push then endowment policy is the right policy for you. Once started you cannot stop. Simple as as that. If you stop, you do risk losing all that you ever worked hard to save. You will then be forced to save till your policy matures. I bet you will not regret looking at your bank account come retirement!
  • Participate in investment-linked fund using the top facility such as the Great Saver Rider on  Great Eastern Investment-Linked policy or Pru Saver on Prulink Prudential policy. Investing in your insurance policy is advantageous in a way that it can be paid by your credit card autocharge.
  • It is wise for you to pay up all your insurance policies with your credit card. You will be paying your premium expenses which is your savings. It is good to keep paying these policies fully because the money will then be debited to your account in future. Keep paying these policies especially those that had critical years.
  • Try investing in unit trust using dollar average. Have your agent remind you to invest more at the end of the month when you have just received your cheque. it is great to be reminded to save your money.
  • Increase your EPF contribution. Say your contribution is 12%, it is advisable to increase this percentage reason being that your taxes will be be reduced. You will then be left with less cash at hand hence saving for retirement. We all know EPF comes handy when you retire.

Got more saving techniques, share with us some of your successful techniques.

This is a guest post by KCLau. KCLau is the best selling author of Top Money Tips for Malaysians. His popular personal finance blog is one of the most visited websites in the financial blogosphere with thousands email subscribers. He also hosts regular and free financial training online featuring different financial experts. You can follow his latest updates by visiting

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