Save for a rainy day

Published: 2009/05/25

THE economic slowdown would be a less bumpy ride for the country if more Malaysians are financially savvy. During the difficult economic period, financially savvy people affected by it would have savings to tide them over until the difficult time is over.

AKPK chief executive officer Mohamed Akwal Sultan said if people diligently keep aside between 10 and 20 per cent of their monthly income for savings, in addition to the Employees Provident Fund, they would at least have savings during a bad patch."If they have no savings, they would have nothing to fall back on," he said.AKPK advises Malaysians to put aside savings to cover six months of their fixed expenses.

In its book on personal financial management, entitled "Money Sense: Getting Smart with Your Money", AKPK outlined:
* Setting financial goals are important to achieve security and financial freedom
* One's financial goals must reflect one's values and beliefs
* Write down financial goals in specific terms, then categorise them in short term, medium term and long term
* One's financial balance sheet shows one's assets and liabilities and net worth at a given point of time
* One's financial balance sheet shows one's assets and liabilities and net worth at a given point of time
* Preparing a budget and tracking cash flow is part of an ongoing process that requires patience, discipline and flexibility
* It is very important to live within one's means.