How to Save Money From Salary Below RM3,000

Published by Sera on December 29, 2023

5 Formula To Save Money From Salary

1. 30 + 30 + 30 + 10

This formula includes the division of your salary into four parts, namely 30%, 30%, 30% and 10%.

Let’s take the example of your net salary is RM3,000, so the money is divided into RM900, RM900, RM900 and RM300.

The first part of 30% is allocated for future enjoyment which includes savings, insurance/takaful and investments.

The second part of 30% is allocated for debt repayments and daily expenses. If you need a loan for home or car financing, make sure the monthly installment does not exceed 30% of your salary.

The third part of 30% covers other expenses such as food and drink, kitchen items, personal needs, rent, bills and any other monthly expenses.

Meanwhile, the remaining 10% can be used to give to parents, donations, gifts or even to pay for zakat.

This formula is suitable for those who just started working or may have lesser commitments.

2. 20 + 50 + 30

The first part on how to save money from salary using this technique, i.e. 20% is for savings. We recommend to open a separate savings account dedicated especially for your future emergency funds.

Once your salary comes in, set aside 20% of your salary into the savings account. Make sure not to withdraw anything from that savings account and by end of the year, you will be amazed how much you have actually saved.If you are looking for another savings alternative, ASB is great. ASB will not only help you achieve financial goals such as buying a house or car, but it is also one of a tools to save for retirement.

Salary RM3,000 x 20% = RM600 (save into savings account)

RM600 per month x 12 months = RM7,200 per year

The portion of 50% is allocated for debt payments and fixed bills. It includes bills for electricity, water, internet, telephone, and so on. DO NOT include credit card bills used for eating & drinking out, entertainment, clothing, etc. One should always choose to spend wisely.

Debt payments involve personal loan repayments, car/home loans, business loans, and so on. If you want to apply for a personal loan, make sure your monthly debt repayment including the existing one, does not exceed 50% of your salary.

Salary RM3,000 x 50% = RM1,500 (maximum limit for total monthly payments for debts and fixed bills).

The third part of 30% covers other expenses such as food and drink, kitchen items, personal needs, rent, bills and any other monthly expenses. Meanwhile, the remaining 10% can be used to give to parents, donations, gifts or even to pay for zakat.

This formula is suitable for those who just started working or may have lesser commitments

3. 90 + 10

This simple formula on how to save money from salary is often used by those who do not want to divide their money into many portions.

The 90% portion applies to all expenses, whether fixed or variable expenses and necessities or wants expenses.

It is also used to pay debts, bills, food and drink, personal needs, entertainment, self-rewards, and so on.

As long as all commitments remain paid such as debts, rent, bills and does not exceed 90%. Meanwhile, another the portion of 10% is reserved for savings or investments.

4. 30 + 20 + 10

This formula is ideal for those who want to manage their salary on a weekly basis. Set aside 10% for saving and investment.

The remaining 90% is then divided into four parts representing four weeks, namely 30%, 20%, 20% and 20%.

The first week, use 30% of the money to pay fixed commitments such as debts, rent and bills, while use the remaining 20% portion for the upcoming week.

You are also encouraged to control spending and if there is extra, you can always put it into your savings fund or choose to spend it.

5. 10 + 20 + 60 + 10

This is another way on how to save money from salary, by dividing your salary into four parts, namely maximum 10% protection, minimum 20% investment, maximum 60% commitment and maximum 10% ‘spending leaks’.

The maximum 10% of your salary is allocated for protection like insurance. It’s always good to protect yourself in case of any unwanted incidents.

Salary RM3,000 x 10% = RM250 (try to find a medical card with this price and also offer various benefits).

A minimum of 20% is for emergency savings, at least 6 months of your salary. It includes short and long term savings, education, retirement pensions and travel plans.

Salary RM3,000 x 6 months = RM18,000 (for emergency savings). Make sure all funds are kept in the bank, no withdrawing unless its for emergencies.

You can also place your savings in investment that provides dividend namely EPF, ASB, robo advisors, unit trust, gold and stocks.

Next, allocate 60% for your commitment. You need to be smart to differentiate between wants and needs. The commitments include daily expenses for you and your family, mortgage loan, car loan, ASB, personal loan and PTPTN.

Some examples of daily expenses are groceries, electricity bills, petrol, and so on.

If you need a car for daily use, make sure you buy following the percentage in the salary, i.e. the monthly installment does not exceed 15% of the net salary.

Salary RM3,000 x 15% = RM450 (ideal car monthly installment for you)

Finally, a maximum of 10% leakage. This can be used for less important things such as shopping or rewarding yourself.

10 Useful Salary Management Tips For Low Income Earners

how to save money from salary — Source: Freepik

Even if you are earning a low income, you still can save little by little. Here we share 10 tips that you can apply.

1. Don’t Spend All Of Your Salary

It is important not to spend the everything by buying unnecessary items. If you want to be successful on how to save money from salary, you should spend your money wisely even if the next paycheck comes in early!

2. Settle All Debts And Commitments

If your salary stays low after paying off all debts, you may need to rethink the way you live your life.

Some realistic solutions could be finding a roommate to share rent, or even switching to a more economical vehicles such as motorcycles and to use public transport.

3. Be Disciplined In Spending

Make sure you only buy items that are on the to-buy-list.

Avoid going to the store too often as you will tend to buy unnecessary items such as snacks and soft drinks.

4. Get A Side Hustle If You Can

You need to try to increase your income, for example through freelancing, dropshipping, baking, selling second hand goods, be a food rider and so on.

Alternatively, you can also generate passive income through unit trust investments, real estate investments, gold investments and so on. What is important is not to get caught up in scam offers and that the part time job would not affect your fixed job.

5. Save Using A Piggy Bank

Psychologically, when we see the money placed in the jar increases, you will feel extra motivated to add more money. And contrary to when you use the money, you will be able to ‘realize’ how quickly the money actually disappears. So, be careful in keeping the money at home.

And contrary to when you use the money, you will be able to ‘realize’ how quickly the money actually disappears. So, be careful in keeping the money at home.

6. Bring Your Own Lunchbox

It is not wrong or even embarrassing for you to bring lunchbox to work. Not only it can help you to save a lot of money, but you also get to eat healthier. If you need some motivation, invite a colleague or two to join you and have lunch together

7. Calculate Your Expenses

Clearly state the amount of expenses and income on a piece of paper. This will help you to see your financial situation more clearly.

It will also strengthen your commitment to work smarter or harder.

8. Save First, Shop Later

If you spend all your income first and save later, then that is the most effective move to create chronic financial problems in the future.

Use this formula to avoid getting lost: Salary – Savings = Spending.

9. Buy Wholesale Goods

Even if you’re single, that doesn’t mean you can’t buy wholesale goods or in bulk. Aim for things that are not easily damaged and are always in use.

You can team up with a friend to buy together so you both get a cheaper price.

10.Give Back To Society

Do good and good will come back to you. Start little by little. It is also a source of blessing. Remember what they say, the more you give the more you get and it’s not about the amount but it’s the thought that counts.

5 Money Saving Tips To Reduce High Living Cost In Malaysia

The increasing consumers price in our country is not something new or unfamiliar, on the contrary, almost every year this issue arises. The drastic increase in price of essential goods especially food like chicken, fish, vegetable and more gives extra pressure on the cost of living and surely affected the monthly commitments of the people. This issue also resulted to every little penny spent with much care eventhough it is to buy necessities while money saving tips and frugality becoming a hot topic in the society.

Money Saving Tips for Students

Knowing the difference between needs and wants

Needs is something that you need in order to survive the day and life as a student like food, clothes and shelter while wants are desire like wanting to eat luxurious food or shop for branded items. Following too much of your desire and wants can lead to being short on fund and force you to starve yourself at the end of the month, it is better that you start saving and learn about money saving tips and management.

Make use of the student card

There are some book shops and stationary shops that offers discount and special offer for university students. In fact, there are various other services that offer interesting deals and discount for you. Do not let the golden chances slip off! Make sure to utilise your student status and get all the discount that you can get.

Use the public transport

When you are in campus, the university will surely set up a public accomodation like bus, shuttle and other free accomodation to make it easier for you to go to class. Utilize those free services because it can help you save more money. Avoid from using services like e-hailing if you are not in hurry or the situation does not require for one.

Sell unused stuff, offer service

If you happen to have items that is still in a good condition or branded and it is is unused, you can sell them to your friend or sell them online to support your expenses. Other than selling clothes, you can also sell food, do a printing service and any kind of services that is not againts the university regulations.

Money Saving Tips for Housewife

Food garden and home cooking

Food garden whether it is at your backyard or in the balcony or in the vase or any suitable places more or less will help you save money on the groceries. Some of the plants that you can plant at your little garden are kaffir leaves, curry leaves, lemongrass and chilli plant. Other than that, you are also encourage to cook at home. Other than the assured cleanliness and money saving, it also get to push your creativity as well as work as a family bonding session if the gardening is done with your family. This food garden is also a very popular money saving tips and tricks that never get old because of the practicality.

Practicing the 3R rules

As a housewife, other money saving tips that you can try that will surely be beneficial is by practicing the 3R rules, which are Reduce, Reuse and Recycle. You can apply reduce when you are purchasing that is not in the priority list like clothes or buying food in a large amount. As for reuse, you can reuse used items or items that is still in a good condition to create something new without having to buy anew while recycle is recycling items like metal, aluminium, drink cans, bottle and glass that you can sell at the recycling center to earn extra pocket money!

Purchasing stuff in bulk and during promotion

When you are buying in bulk, its actually more beneficial in the long run. Usually items that are sell in bulks are way cheaper than buying in retail or unit. Besides, you also get the items farr cheaper when its promotional season or festivities like during Eid or any other special dates or the opening of the new shop. Now, online platform also offer a lot of promotion when you buy through the online platform. If you need an item but not urgently, you can wait until the item is on sale or try to get it for cheaper by getting a coupon and use them if you are thinking of purchasing it.

Practice electricity savings

You can educate your family to always practice saving electricity like switching off when you do not use it, buying electrical appliances with the energy saving label and taking off the socket if it is not in use. This way, you can save up a lot on the electricity bills from going off the peak.

Money Saving Tips for Low Salary

Do salary budgeting

Doing salary budgeting every month if you have never done it before. The budgeting aspect that should be included are food, rent and commitment. Make sure that you are disciplined in following the budgeting plan that you have set other than setting aside the items that you want or items that is not in urgent need. There are more way on money saving tips and budgeting for personal financial management like the 50/30/20 rules that helps you allocate your salary according to your needs, wants and others.

Find side income

Now, there are many ways that you can do a side jobs to create income from home even though you are working full time. What important is you work hard in doing any job and make sure that it will not interfere your full time job. For example, Portal like Fiverr, Upwork, Freelancer, Servishero and Kaodim able to easily introduce your skills and service online. Fill in the profile and details needed and you can apply for any position advertised. Other than that, on the weekend, if you are bored staying at home, you can become an e-hailing service driver like Grab.

You can also try doing services like food delivery service with foodpanda, Shopee food, Lalamove and more. With the extra money that you will earn, paired with all the money saving tips that you learn, you will surely step up your financial game. Futhermore, ‘e-dagang’ is gaining more recognition within the community as a place to shop. You can sell various kind of items or services on the platform like Lazada, Carousell, Mudah and 11street. As long as you have a good internet connection.

Do not add more loan

This is the time to study and recheck your debt commitment and monthly payment, managing your monthly budgeting, daily expenses as well as house expenses can guaranteed that your savings will last longer. For credit card, the arrears balance can be change to term loan with lower interest rate.

However, if your financial situation is affected, it is better to avoid high usage of credit card or adding more to your piling debt. This situation will only make your financial problem worst and as a guide, for those who need to accept salary deduction, do not shop like you normally does, try to explore more options that can increase funding and always be frugal. With applying money saving tips and being more calculative with your debt commitment, you might get to save up more than you think.

Save your salary to beneficial account

The salary that you get can be put into a separate account that is not easily accessed or beneficial account. For this purpose, the best kind of account is an account that is hard to access like Tabung Haji or Amanah Saham. If your salary is transferred to Maybank account, try save a bit into your CIMB account. Most recommended is to save on account that is hard to access like Tabung Haji, ASN and ASB.

Utilise My50 travel pass

You can utilise the unlimited My50 travel pass that only cost RM50 monthly that you can use for rail and bus services under Prasarana Malaysia Berhad (prasarana) that is introduced by the government under theh Pelan Jana Semula Ekonomi Negara (PENJANA) scheme on June 2020. Usually, for monthly pass, it will cost you RM200. With My50, it indirectly help you save up your travelling expenses if you use public transport. This pass is exclusively for the citizen of Malaysia and can be use with MyKad, MyTentera and MyKid, and also you can get them at any LRT, MRT, Monorel and BRT stations.

Use e-wallet

Get more benefits and save up more when you make your payment using e-wallet. There are various kind of online wallet or e-wallet that is secure and trusted in Malaysia, some of it are GrabPay, Boost and FavePay. The e-wallet usage is gaining popularity in our Malaysian community because of its user friendly nature, wild rage of shop and special discount. Not only that, cashback offer also awaits. Collaboration with various merchant and services always offer many cashback and discount that surely tempting! This is what we call a smart shopper!

Money Saving Tips for Freelancer

Separate your business account and personal account

Separating your business account and personal account is very vital. Firstly, it can ease your money management and tax including identifying between business money and personal money. Business account can be use as capital to expand your business, pay for marketing cost, damage and loss and more for the growth of the company or service, and also avoid you from getting legislative problem.

Set a business budget

This is important because you get to clearly see the cash flow to better plan your business. You can use financial apps to record every spending and expenses. You also get to see whether your overspend or underspend every month.

Separate a small amount of your money for emergency

As a freelancer, you maybe used to clients not paying your services on time. Due to that, it is important to set aside some of your earnings to be used on emergency situation like late payment. This also will help you last on the long term before receiving a payment.

Learn basic accounting

Accounting is a recording process, classifying and transcribing transaction using money value using a simple way and systematic. Bookkeeping is one way to record business precisely and systematically. The benefit of that is that you get to arrange financial record, knowing your financial position, manage debt and ease your long term financial planning process.

Money Saving Tips for Business

Start a good monetary habit

You can set a good monetary habit by setting up a financial rule to protect you and expand your business. For example, you can set up rule and boundaries before spending and investing your business money for something or somewhere.

Other thing that you need to consider is getting your business partner’s or worker’s consent and agreement before making a big decision. This is to ensure you does not get scammed and lower expenses on your business.

Monitor expenses

When you monitor your expenses, it helps you to access business information and analyse transaction record, which will make your business management smoother and efficient.

Other than that, you will also able to establish your business financial position, controlling the cost and expenses of your business, observing the cash flow of your business, daily, weekly, monthly expenses and profit.

Utilise government initiative

SemarakNiaga

SemarakNiaga Keluarga Malaysia (SemarakNiaga) initiative valuing up to RM40 billion that was launched by YAB Prime Minister, Datuk Seri Ismail Sabri Yaakob on 21st of February 2022 is a part of the 2022 budget highlight to help the business sector to revive, especially Micro business, Small and Middle business (PMKS).

Video: How to Consistently Save Money From Salary Below RM3,000 Salary

Here are 3 ways to save money from your salary. Remember, it’s better to start now so you can have financial freedom in future!

Conclusion

Lastly, what is most important in saving money is to always be committed and disciplined. Although there are many types of ways to save money, you do not necessarily have to practice them all. Find a way that suits your abilities and needs.

We hope the financial advice given could help you save without having to be too frugal like starving yourself. Always have the right mindset and reset your finances so that your saving goals can be achieved. Sometimes its normal to fall off track, but its best to quickly get your head back into the game. Don’t give up, you can do this.

This article is written by Direct Lending – a licensed bank & cooperative personal lending platform. We can help you find, compare & apply for the personal loan that best suits your needs. Check your eligibility for free & get a loan as low as 2.95% or as fast as 2 working days.

About the writer

Sera

A UiTM graduate, digital marketer and content creator since 2018. Sera writes about anything, from career advice, lifestyles, and finance. A person who cannot live without coffee, and sometimes she spends too much time on Twitter and TikTok.

By Sera