Sunday, October 30, 2016

Savings during Hard Time?

Under the current high inflation and global economy recession, do you find it is extremely difficult to have savings?

Over the past 7 to 8 years, inflation has eroded the value of the country's currency, including currency exchange with USD, booming of property prices, introduction of GST from the Government, removal of Government subsidies such as petrol, cooking oil, sugar, etc. 

Basically a plate of kolomee in my hometown has shot up from RM4.00 in 2008 to RM7.50 today. That means whatever cash I have in hand and bank account has drastically drop almost 50% in value during these 7-8 years, about 6-7% inflation per year. The inflation seems like started to slow down since last year, but it is just temporary from my point of view.

So in such situation, does it means it is still worth to do savings? In my opinion, I think savings is indispensable. Why? Everything need money. Yes, money is inflated and drop drastically in value, might as well use them now instead of 5-7 years later, right? But what's the point of spending money on unnecessary stuffs? The money is hard earn from our monthly pay check, this is why we need more savings. But is it by tighten our belts further? Or how?

The world is changing, including the way to make more money and savings. We need to be creative and innovative with the fast pace of everyone is trying to move forward. I myself is very stingy in person, but I feel the pain of saving very less nowadays, due to inflation and lower income comparing to the good times. I have done my best to save as much as I can during the good day. Now are the bad days where I have very less income and I can tell you I have no savings over the past 1.5 years! So I chose to be generous since a couple of months ago. 

Due to the high cost living nowadays, my savings are depleted quite fast. The only resolution I thought is to look for more income. That is why I started my own business early last year. I failed 2 times miserably but I still wake up and tried the 3rd time early this year. 

What I'm trying to share is, savings is not enough. To leverage on your money is the only way to go, either through investment, doing business, part time, get commission via sales, etc. Many people would like to stay in comfortable zone by just want to try something easy. Imagine this easy ways you and I can try easily, how much do you think the return is? Another example is ponzy scheme. If the investment return is so high and good, why is your turn? All they need is just your money. Think twice. 

There's no free lunch in this world. If you want to achieve something extraordinary, you really need to work extra hard and solve a lot of problems to get through it. 

Have a nice weekend, folks.

1 comment:

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