How to Start Saving Money in Malaysia

Are you tired of living paycheck to paycheck? Do you feel like saving money is impossible with Malaysia’s rising cost of living? You’re not alone. However, with the right strategy, you can build savings—even on a tight income.

Know Where Your Money Goes

Before anything else, understand where your money goes. Use free apps like Money Lover, Spendee, or even a simple Excel sheet.
Additionally, track your expenses and set a clear savings goal. You’ll be surprised how small habits—like bubble tea or daily Grab rides—can drain your wallet.

Start Small, But Start Today

You don’t need to save RM500 right away. Instead, begin with just RM5 a day. That’s RM150 a month—a great start.

💡 Tip: Put this money in a separate savings account or a Money Market Fund. This will reduce the temptation to spend it.

Here’s a quick breakdown:

50% Needs (rent, food, loans, bills)
30% Wants (eating out, shopping, Netflix)
20% Savings & Debt Repayment

However, if you’re struggling, begin with just 10% savings and increase it slowly.
You can also use tools like the RinggitPlus Budget Planner to simplify your budgeting process.

Automate Your Savings

Set an auto-transfer right after payday. When you “pay yourself first,” the money goes straight into savings before you have the chance to spend it.
🧠 Out of sight, out of mind = less temptation.

Cut One Bad Habit Monthly

Every month, remove one money-wasting habit. For example:

Daily coffee shop: RM10/day → RM300/month
Lazada/Shopee impulse buys → RM100+/month

As a result, you’ll free up more cash for saving or investing.

Choose the Right Savings Tool

When it comes to saving, it’s important to choose the right tool. Here are some options:

Tabung Haji – Low risk + hibah (dividends)
ASNB – Decent returns (if eligible)
Money Market Fund – Higher returns than regular savings
Fixed Deposit (FD) – Ideal for short-term parking

Final Thoughts: Saving Is a Habit, Not a Number

Saving money isn’t about how much you earn—it’s about how you manage it. By starting small, tracking your spending, and staying consistent, you’ll build healthy financial habits and watch your savings grow.