Even though times are tight for many, with a wide range of financial products that can help you to put something away for the future regularly, saving money and watching it grow has never been easier. It takes effort for most people to save, as it isn’t something that comes naturally to many of us, but putting something aside for the future is beneficial for a myriad of reasons.
These include saving for a mortgage or retirement, both of which are very important, and putting some money aside for an emergency so that you have access to cash and aren’t forced to borrow and get yourself into debt.
A Variety of Saving Options
Nowadays, banks have made it very easy for all of us to save by delivering a broad range of savings accounts, including high-interest savings accounts that are excellent for saving short-term. Along with savings accounts, some of your other saving options, both short and long-term, include:
- Government bonds – Bonds issued by the government are stable and secure, generate good returns and are suitable for both short and long-term saving.
- Term deposits – A good option, but at the moment with the generally low interest rates that banks are offering, they’re hardly an exciting investment.
- Peer to peer lending – Many people have had good experiences with these, but they are risky and you must bear that in mind.
These are three top examples of the savings options that you have available. However, it must be said that if you’re saving short-term, a high interest rate saving account available in Malaysia really is the way to go. The interest rate you’ll get is about the same as a term deposit, though you don’t need to commit for periods of six months or more, plus you have the added advantage of being able to make deposits into your account during the interest term period. That’s something you can’t do with a term deposit. High-interest savings accounts are, therefore, more flexible than term deposits, so shop around and see what other banks are offering in comparison to those of your bank.
Make a Plan
When you have a savings plan you’re better able to put a set amount of money away every week, fortnight or month, enabling you to watch your savings grow. To make a savings plan, first create a budget so that you know how much you can set aside each week after the bills, shopping, credit card repayments, etc., ensuring that your budget isn’t too tight or inflexible. While it’s good to put limits on your spending when saving, you still need to leave yourself enough to live comfortably and enjoy life. There’s more to living than saving!
To sum things up, with so many savings products available from banks, including term deposits and highly flexible high-interest savings accounts, setting something aside for the future has never been easier. However, you still need to make an effort to save, so make a savings plan and stick to it!