Now that Chinese New Year is over, we’re pretty sure you’re all left with quite a bit of extra ang pow money. Some of you might have already spent it all on shopping and we’re not judging. Everyone has their own right to use their own money.
However, for those who still have not spent it yet, you can put your ang pow money to better use. Here are a few good ways you can use your ang pow money this year:
1. Start a private retirement scheme for a comfortable future
Many Malaysians can agree that the savings we get from EPF aren’t entirely enough for retirees to sustain after they stop working. Putting your ang pow money into a private retirement scheme (PRS) is a good way to start the practice of saving before retirement.
Here are a few PRS providers (approved by the Securities Commission) you can look into:
- AmInvestment Management Sdn Bhd
- AIA Pension and Asset Management Sdn Bhd
- Public Mutual Berhad
- Kenanga Investors Berhad
- Manulife Asset Management Services Berhad
ICYMI, a PRS allows you to decide when and how much you want to contribute to the scheme. This can help kickstart the good habit of regularly setting aside some retirement money throughout your working life. Many financial planners advise contributing 10% to 15% of your monthly income into your private retirement savings.
2. If you’re still looking to shop, do it the smart way
As mentioned before, everyone is entitled to spend their money the way they see fit. One good advice about shopping is to never shop at full price. Some people are great at negotiating prices while some are diligent coupon hunters.
Seeing as how we live in Malaysia, there is hardly a need to bargain as there are so many festive seasons and all the sales that come with them. All you have to do is be a little patient and shop when the sale season is in.
Speaking of which, if you missed out on shopping during the Chinese New Year sales, there’s still a chance to shop at festive prices this weekend!
In fact, you can shop from over 100 luxury brands at 80% OFF thanks to The Extended Oxpicious Sale!!! OMG!!!
That’s right, for five days only, Malaysians can shop for brands such as Michael Kors, TUMI, Pedro, Charles & Keith, Victoria’s Secret, Swiss Watch Gallery, and more at up to 80% OFF on selected styles! From luxury timepieces and jewellery to perfumes and cosmetics, there’s something for everyone!
Here’s the lowdown on the event:
Venue: Sunway Resort Hotel, Bandar Sunway
Dates: 5 – 9 March 2021
Time: 10am to 8pm, daily
Register & get your passes here!
There is also going to be a daily lucky draw where participants can stand a chance to win prizes from Apple and many other brands just by spending a minimum of RM1,288.
3. Clear off your credit card debts
This is the perfect opportunity to clear what you owe with your credit cards. Instead of accumulating more credit and paying off a higher credit amount or having to cough up late payment fees with your ang pow money, you can use it to clear off whatever you owe first and feel that relief of not missing a payment. FYI, missing your credit card payments can also ruin your credit score!
Starting off the year with zero credit card debt is a great thing and once that is settled, you can still go ahead with shopping without worrying about whether you’ve spent too much on your credit card or not.
4. Open a separate savings account and stash your ang pow money in there
It’s pretty easy to spend your ang pow money when it’s sitting in your main bank account which you withdraw from regularly. It also doesn’t help to see so much money in one account as that would just tempt you to want to spend more. Instead, open a new sub-account at your bank or a new account at a different bank altogether to stash your ang pow money into. This way, you won’t “accidentally” use it.
You’d be amazed at how much you’ll accumulate as each year passes. You can also stash away the money you get from birthdays, bonuses or any extra cash you get from other festive seasons like Hari Raya or Deepavali!
5. Stash your ang pow money in a fixed deposit and let it grow
An alternative to opening a savings account is to put your ang pow money in a fixed deposit account (FD). You can start a fixed deposit account with as little as RM500 and the interest rates from an FD account are generally higher than a savings account.
Here are the top three banks with at least 1.8% interest on returns that we found, assuming you put in a fixed deposit of RM500 over six months:
- Versa Affin Hwang Asset Management – 2.4% per annum
- BSN Term Deposit – 1.85% per annum
- RHB Ordinary Fixed Deposit – 1.8% per annum
Naturally, the more you deposit and the longer you keep your money in there, the higher the returns are.
Moreover, there’s less risk of you taking the money out from an FD account since the deposits are fixed for a certain amount of time. This will ensure that your money is safe from impulsive spending decisions.
6. Put your ang pow money into investments
You can choose to invest your ang pow money in unit trusts, shares, gold, or even property, to name a few. If done right, you can get good returns and end up with more money than you had. Of course, there are risks when it comes to investing and you could also lose more than what you started with.
Some research and learning will be needed on your part, and this would be better than blowing all of your ang pow money on a pair of shoes or some fancy gadget, yes?
At the end of the day, as long as you save up and shop smart, you’ll be able to save more over time and you’ll thank yourself later for being a financially responsible adult.
And if you’re set on shopping, don’t forget about The Extended Oxpicious Sale we mentioned earlier. Just remember to mark your calendars, register for an entry pass, and don’t miss out on this once in a lifetime event!
