Smart Ways To Use Your Ang Pow This Year (Nope, Saving Is Not One!)
So, Chinese New Year is over and some of us are back at work. After all the festivities, spending time with family and friends, eating all the delicious food, receiving/giving ang pow, it’s time to get back to reality.
Before we move on to the ang pow you received this year, what did you do with the money you received last year? Chances are you blew it up with some shopping and food hunting. Or if you are a teenager, you probably reluctantly (and with a big scowl!) handed it over to your parents.
But things are going to be different this year! Let us show you what other financially-smart ways you can use your ang pow, apart from simply stashing them in your savings account. Here’s why you shouldn’t!
Based on iMoney’s Ultimate Guide Of Ang Pow Giving 2020, the amount you receive varies with age.
If you are below 20 years old…
You probably have received a big stack of ang pow totalling at least several hundred ringgit from your parents, married siblings, uncles, aunts, and grandparents.
Have your heart set on those sneakers? Go for it! But, that’s about it. Control your urge to spend all your ang pow money away. Some other things you can do:
1) Buy fiction or non-fiction books and start reading
2) Invest in sports equipment and start sweating it out
3) Buy a music instrument that you fancy (and can afford!) and learn how to play through free online videos
These will help you to develop lifelong habits and keep your mind and body healthy. In short, you are going to invest in yourself and gear up for a bigger and better 20s!
If you are in your 20s…and still single…
Your ang pow may have come from your parents, your married siblings, your uncles, aunts and grandparents.
Since you are in your 20s, it’s a good time to start learning effective money management. Don’t just splurge blindly on that pair of sneakers or the latest gaming console. Instead, consider a longer-term game plan.
2) Read financial books and amp up your financial knowledge. Get started with this list of books.
4) Get your foot into the world of investing. Investing requires a lot of knowledge, research and some money. Why not test the waters now? In fact, 20’s is the best time to start thinking about investing!
In short, expand your horizon and get a good head start on your financial journey. A lot of Malaysian youngsters are making these money mistakes and you don’t have to, if you take the right steps early on.
We are skipping the 30s and going straight to the late 40’s and 50s…
Because, the ang pow stream gets very thin and non-existent when you are in your 30s and early 40s!
But if you are in your late 40s and early 50s, your kids are highly likely grown up and possibly married, so they would have given you an ang pow instead. While you may be inclined to pass it back to them one way or the other, why not keep it?
1) Splurge (get the body massage you have been longing for or pay the deposit for a tour to your favourite destination) and enjoy after all these years of hard work
2) Channel it to your investment portfolio
3) Top-up your EPF contribution. Check out our interactive EPF tab here!
Even though your EPF account might seem solid enough of you to retire without worrying too much, EPF has recently released a statement that it is barely adequate. In fact, EPF has raised the minimum savings for EPF members from RM228,000 to RM240,000 just last year.
According to EPF, two out of three members have savings less than RM50,000 while 50% of members use up all of their savings within five years of retiring.
So, why not put some thoughts to your retirement fund this year?
Despite your age, it is of utmost importance to get your finances sorted and according to famous author Robert Kiyosaki,
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”