The Star: The RM270 Temptation

With the RM1,500 minimum wage increase implemented on May 1st, the net salary taken home will be RM270 more than the previous minimum wage of RM1,200. This wage hike works to increase the spending power of the people, thus generating economic activity. 

Kimberly recommends saving this additional money for your retirement rather than giving in to the temptation and pressure from family and peers to upgrade your lifestyle. Maintain your current expenses and try to pay off outstanding loans with this additional sum as it will cost you more to owe the bank money. Avoid taking personal loans and instalment plans as these could be detrimental to your financial growth. Kimberly also advises to prioritise saving up for your emergency fund and for capital growth to help you in the future. 

It is imperative to start good financial habits as early as possible before you grow accustomed to a certain lifestyle or take on more commitments. One of the tips Kimberly offered is to have separate bank accounts for savings and expenses. When you receive your salary, always deposit into your savings first and then use the balance to manage your expenses. Your savings account should be reserved for your retirement and any emergencies, although you can also opt to use it for investments. 

This article can be found online here.