Welcome to the workforce! Before you spend all your new paycheck on fun, remember it is never too early to start saving for your future too.

Hello there, fresh graduates! Congratulations on landing your first job. As you embark on this exciting new journey, one of the most important skills you’ll need to master is managing your finances.

Saving money might seem like a daunting task, especially when you’re aiming to save a significant amount. But don’t worry, it’s entirely possible with the right strategies and a disciplined approach.

We do realize that the salary a fresh graduate can earn differs depending on your qualification, industry, and other factors. While we encourage you to set your own target number, for the purpose of this article let us propose a target of RM1000 in 30 days.

Here’s a detailed guide to help you achieve this financial milestone.

#1. Set a Clear Goal

Setting a clear, specific goal is the first step, such as saving RM1000 in a month. It’s like setting a destination before you start a journey. Write this goal down, put it on your fridge, or set a reminder on your phone.

Having a constant reminder will serve as a compass, keeping you focused and motivated. It’s a psychological trick that works wonders!

#2. Create a Budget

Creating a budget is like drawing a map for your financial journey. The idea is to identify what money you have coming in, and what you have going out. It helps you understand where your money comes from and where it goes.

  1. Start by listing all your income sources, which may be just your current salary.
  2. List all your expenses, including your bills, groceries, transportation costs, and even your weekend hangouts.
  3. Take your income and deduct your expenses. You should have some leftover to save and/or invest.
  4. Now go back to your expenses and scrutinize the list. Are there items you can cut? More on this in the next point.

Knowing how your money flows in and out of your hands can give you a clear picture of your financial situation and show you where you can make cuts.

Remember, every ringgit counts when you’re trying to save a significant amount in a short period.

#3. Cut Down on Non-Essential Expenses

With your budget in hand, it’s time to scrutinize it. So, do you know what to do here?

The big difference maker is identify essential expenses versus your non-essential expenses, also known as needs versus wants. You will want to prioritize setting aside money to pay off essential needs that are necessary for you to survive such as rent or food. Meanwhile, you may want to think thoroughly if the non-essential wants are things you should be spending money on right now with your current income, such as subscriptions or extravagant dining.

Cutting down on expenses can free up a significant amount of money. For instance, if you spend RM20 a day on coffee, that’s RM600 a month you could be saving! Instead, why not invest in a good coffee maker and enjoy homemade coffee?

#4. Cook at Home

Eating out can be expensive, and as a fresh graduate, it’s a luxury you might want to limit. By cooking at home, you can save a considerable amount of money.

Plan your meals, make a shopping list, and stick to it. Avoid impulse purchases and try to cook in bulk to save time and money. Plus, cooking is a great life skill to have, and it’s healthier too!

Assuming you eat out during lunch time with average meal cost of RM15, you can potentially save RM300 here!

#5. Sell Unwanted Items

Look around your home for items you no longer need or use. Selling these items online or at car-boot sales on weekends can be a quick way to make some extra cash.

For example, check out Kota Damansara Car Boot Sale with a minimum rental of RM 20/ day, your earnings depend on how much you are willing to part! Clothes, electronics, furniture, and books are just a few examples of what you can sell.

It’s a win-win situation – you declutter your space and earn money at the same time.

#6. Take on a Side Job or Freelance Work

If your current income isn’t enough to save your goal of RM1000 in a month, consider taking on a side job or freelance work.

There are many online platforms where you can find freelance jobs that suit your skills and schedule. It could be anything from graphic design, content writing, tutoring, or even pet sitting.

This not only helps you earn extra money but also broadens your skill set.

#7. Save on Utilities

Be mindful of your utility usage. Turn off lights when you leave a room, unplug electronics when they’re not in use, and try to use less water.

These small changes can lead to noticeable savings on your utility bills. It’s not just about saving money, it’s also about being environmentally friendly.

#8. Use Public Transportation or Carpool

If possible, use public transportation or carpool instead of driving. This can save you money on gas, parking, and maintenance.

If you live close to your workplace, you might even consider walking or biking. Not only will you save money, but you’ll also get some exercise and reduce your carbon footprint. It’s a small change that can make a big difference.

#9. Avoid Impulse Purchases

Impulse purchases can quickly eat into your budget. Always ask yourself if you really need something before buying it. If it’s not a necessity, skip it.

This might be tough, especially with online shopping just a click away, but remember your goal. A good trick is to wait a day or two before making a purchase. Often, you’ll find that the urge to buy has passed.

#10. Track Your Progress

Keep track of your savings progress. This will help you stay motivated and let you know if you need to adjust your strategies.

Celebrate small victories along the way to keep your momentum going. You could use a savings app or a simple spreadsheet to track your savings.

Seeing your savings grow is incredibly satisfying and will motivate you to keep going.

Conclusion

Remember, saving money on a small income requires discipline, creativity, and a willingness to make temporary sacrifices. But the sense of accomplishment you’ll feel when you reach your goal will make it all worth it. Plus, you’ll have developed great money-saving habits that will benefit you for a lifetime. So, are you ready to take on the challenge? Good luck on your savings journey!

 

What other money saving tips can you give to a fresh graduate? Let us know in the comments down below.