#1 Save 30 per cent of monthly income. 

Live on the remaining 70 per cent. By doing this, you may use the savings for investment later. It is tough, especially when you have high commitments. 

If 30 per cent is too much for you, set aside whatever amount you can. As your income increases, you will eventually go for the 30 per cent or more savings. 

The idea is to cultivate on doing savings regularly. 

#2 Do up a budget based on the remaining 70 per cent

By setting aside some money for savings, you have to be cautious with your spending by sticking to your budget.

Do not ignore the “wants” list in this budget to make yourself happy. But it is important to learn how to be happy with the few things you have.

#3 Do not splurge on your savings

Some save money to get something they want. Though, there is nothing wrong with that, but if given choices on a materialistic buying and capital to do investment, which one will you use your money for?

The amount of money you spent on the latest gadget, let say RM10,000 might increase by tenfold in 5 years if you buy shares on the gadget company.

#4 Learn how to invest your savings

Instead of relying on “Fear Of Missing Out” information and gut feel, try to learn the art and science of investing before diving in.

Read books and surrounded yourself with people who are good in investment. Get the mindset, skillset and experiences needed to become a savvier investor.

#5 Buy and Keep Good Assets

Good assets should be bought at reasonable prices and keep them for a long term for as long as they continue to churn out good profits.

For stocks, look for companies where their business models are solid and their financial results are superb, as well as healthy balance sheets.

#6 Have a rainy day fund

Do not undermine the importance of having a rainy day fund and adequate liquidity.Set aside between 6 and 12 months worth of living expenses as an emergency fund.

Keep in flexi home loan accounts and share margin financing facilities.

#7 Review Credit Score Regularly

This is to know the likelihood of getting loan approval y a bank or financial institution.

You may do the review using credit report agencies such as CTOS , Experian . Alternatively, you may also get your report from official website of Bank Negara Malaysia.

#8 Review Insurance Policies Periodically

Based on your situation over time, such as getting married, having kids or having to support parents. Review the insurance policies to ensure yourself and families are covered well medically and financial.

Look also into estate planning to ensure that your asset distribution arrangements continue to be relevant.

If you want to review your protection coverage, you could it here. Check financial health and protection coverage

#9 Be a savvy consumer

There are three essential steps when it comes to spending.

For big purchase, check their prices at least 3 different places, always ask for discount and do not buy things that you will not use for the next 7 days.

#10 Check your nett worth on monthly basis

Lock into bank account weekly to track expenses and ensure there are no fraudulent transactions from your bank accounts.

Use credit card to make most purchases to help with tracking expenses but also to enjoy the benefit, perks and privilleges. But, make sure to pay off the credit card balance every month. NEVER use your credit card for something you cannot afford.

Every month, check your net worth and to track whether the figure has grown over time.

#11 Pay Bill on Time

Use a Google Spreadsheet to keep track of the due date and frequency and the direct links for payments.

Set up a recurring reminder to go through the bills every month.

Content is based on KCLau’s Youtube channel: 10 Healthy Financial Habits Every Malaysian should Practice