Why Saving Is No Longer Enough
Is it just me, or did RM50 used to last longer?
Since the targeted RON95 subsidy changes kicked in last September, we’ve all been holding our breath. If you’re one of the lucky ones still paying RM1.99 per litre, you might think you’re safe.
But then you go for lunch. The Nasi Lemak that was RM4.00 is now RM5.50. The Grab ride that used to cost RM12 is suddenly RM18.
Here is the uncomfortable truth: Even if your petrol is subsidized, the truck delivering your groceries pays the full market rate. And guess who pays for that extra cost? You do.
This is what some might call the "Silent Thief" of 2025. While the government says inflation is low (around 2.5%), your Lifestyle Inflation—the cost of actually living, eating, and moving—feels a lot higher.
If you are still parking your money in a savings account or a Fixed Deposit (FD) earning 3%, you may want to reassess whether this keeps pace with your rising cost of living.
It’s time to stop playing defense. To survive 2025, you need to hit three specific targets. We call them the "Magic Numbers."
1. The Shield: RM12,000
This is your Emergency Fund. For a single person living in the Klang Valley, the "Baseline" cost to just survive—rent, food, My50 pass—is now RM1,970/month.
- Why RM12,000? It covers exactly 6 months of expenses. Think of this as your airbag. If you lose your job or your car breaks down, this cash keeps you from drowning in credit card debt. Without this shield, one bad month can ruin your whole year.
2. The Sinking Fund: RM292/month
Most Malaysian budgets fail because of "Annual Shocks"—expenses that happen once a year but feel like emergencies because we forgot them.
- Road Tax & Insurance: ~RM1,500/year
- Festivals (Raya/CNY): ~RM2,000/year
- Total: RM3,500/year
Divide that by 12, and you get RM292. You need to save this on top of your daily expenses. If you don't, you'll be swiping your credit card every time Raya comes around.
3. The Future: RM650,000
This is the big one. The EPF used to say you needed RM240,000 to retire. That number is now obsolete.
The new "Adequate Savings" target is RM650,000.
- Why? This amount generates roughly RM2,700/month in retirement income (assuming a 5% dividend yield) for 20 years.
- In a city like KL, RM2,700 is the minimum for a dignified retirement. Anything less may limit your ability to sustain a dignified and independent retirement.
The "Leaking Bucket" Problem
Now, let’s look at the math.
Imagine your savings is a bucket of water.
- Inflation is a hole in the bottom, leaking water out at 5% per year (Lifestyle Inflation).
- Fixed Deposits (FD) pour water in at 3% per year.
The Result: The water is leaking out faster than you can pour it in.
To plug the hole, you need an engine that beats inflation. You might need returns of 5% to 7% just to break even and start growing.
This is where Wahed comes in.
- It’s Halal: All investments are screened for Shariah compliance. No gambling, no alcohol, no usury. Just ethical, real-world growth.
- It’s Smart: You don't need to be a stock market expert. Wahed’s algorithm builds a diversified portfolio (Global Stocks, Gold, Sukuk) tailored to your risk level.
"But Am I Safe?" (Get Your AI Financial Assessment)
Reading these numbers can be scary. "Do I have enough surplus?" "Is my Emergency Fund big enough?" "Am I on track for RM650k?"
You don't have to guess. We’ve built a tool to do the heavy lifting for you.
Introducing: The Wahed Savings Calculator
This isn't just a calculator. It’s a reality check.
- Enter your Income & Expenses.
- Input your current savings.
- Get your "AI Financial Assessment"
The AI will analyze your financial health instantly:
Stop Letting the "Silent Thief" Win
The RON95 subsidy changes were a wake-up call. The cost of living isn't waiting for you to catch up.
You don't need thousands to start fixing this.
- Check your Reality: Use the Calculator to see where you stand.
- Start Small: You can open a Wahed account with just RM100.
- Automate It: Set a direct debit for your sinking fund - RM292 per month in this example
Don't let 2026 be the year you fall behind. Be the Empowered Realist who takes control.
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As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.
Wahed Invest LLC (Wahed) is a US Securities and Exchange Commission (SEC) registered investment advisor. Wahed Invest provides brokerage services to its clients through its brokerage partner Apex Clearing Corporation, a member of NYSE - FINRA - SIPC and regulated by the SEC and the Commodity Futures Trading Commission. Registration does not imply a certain level of skill or training. Wahed does not intend to offer or solicit anyone to buy or sell securities in jurisdictions where Wahed is not registered or a region where an investment practice like this would be contrary to the laws or regulations. Any returns generated in the past do not guarantee future returns. All securities involve some risk and may result in loss. Any performance displayed in the advertisements or graphics on this site are for illustrative performances only.
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