OMG, I’m Not Saving Enough!

Previously I posted a savings strategy that I have personally adopted; “the first hour I work in a day, I pay myself first”. I have given an example on how to calculate it and I’m sure some of you would have done the calculation. Chances are you may be saving more or less than the amount calculated.


When I first calculated, I realized I was saving way lesser than the desired amount and I couldn’t meet it due to my excessive commitments. Naturally, my very first instinct was to question the viability of the method itself. Can I apply this method? Is it meant for me? Is there a better method which I can follow to increase my savings? It didn’t take long for me to conclude this method wasn’t for me and I eventually gave up. (I bet you would have asked these questions too.)

The funny thing is, even after giving up I was constantly thinking about it. I guess deep down in me, I knew the importance of saving, but my commitments were holding me back from applying the strategy. After a few months of thinking it over, I finally decided to do something about it. There is little point to think of something without acting on it. In fact, overthinking can be tiring.

Action 1

Let’s get back to the calculation. Based on the example given in my previous post, the monthly savings was RM616. This comes up to 12% of the current income (RM616 / RM5000 * 100%). On my first calculation, I realized I was only saving around 4%. There was a deficit of 8%. I got demotivated looking at the numbers since I didn’t know how to make up the extra 8%. However, after pondering for some time, I realized 4% savings is far better than none. That made me feel better about my situation.

Action 2

The next question I asked, “how can I increase my savings percentage”? Instead of dwelling on the 8%, I started thinking smaller, “how do I increase by 1% for a start?”. 1% savings on the example given is around RM61. RM61 over 30 days is around RM2. Can I save extra RM2 daily?

Let’s be honest, during the beginning stage, it won’t be easy to save RM2 daily. Reason being, it is not part of your daily habit. I’ll admit, some days I’ll be able to save and some days I’ll totally forget about it. The key here is to keep reminding ourselves about it and work on it till it becomes part of our daily habit.

If thinking big is stopping you from saving, then start thinking in smaller terms. Baby steps; start saving, any amount will do. In my next post, I will share more about how I gradually increase my savings.