We need to move away from the conventional way of 'saving'. During our parents time, we were always told 'save a portion of our salary'.

But now, u cant just save anymore. Saving just like that doesn't work when ure dealing with high inflation. Your savings are being eaten by inflation daily. Most ppl think that inflation in Malaysia is just 3% so FD rates can easily offset that. But that inflation figure is taken by comparing the most expensive place in KL with the cheapest place in Sarawak. Very misleading I must say.

Realistic inflation in KL is about 10% per annum on average I would say. So if your savings / investments are not getting you at least that, then your overall NAV is being 'eaten up' slowly but surely. So what most ppl do is they start cutting back on expenditure. But what everybody should be doing is enhancing their savings. Make your money work for you. Don't leave it idling around.

wow.. very nice replies from you guys.

1. is it true the inflation rate is 10%? then its going to eat inside me.. as this year no increment.
2. So whats your suggestion on how should my money work for me?
3. 500 sgd is what i can save everymonth. As im single and free of any commitment. so basically my slary for food transport and entertaiment including room etc.
4. Im under WP in sg. soo i dont have and epf or cpf. now im thinking the best place to secure my long term salary.

Please furthermore advice me in summary.

indeed, it will depend on personal need.

I think if one has, let's say half a million saved up and set aside for medical cost - one can forget medical insurance.

If your medical costs is more than that, perhaps better to die!

Edit: It is much easier to reach half a million if you start young, and while company covers your medical costs