Everyone’s financial journey is unique, but there are many goals commonly shared across the board. Whether you are just starting out in the workforce or are looking after your elderly parents and/or children, going back to the basics is important.

Many things will crop up along the way that might distract you from your long-term monetary goals. This is why it’s important to review your progress and remind yourself of the fundamentals.

To that end, here are seven basic things that you should remind yourself to save for on your financial journey.

1. Home ownership

It’s important to have a roof above your head. But sadly, home ownership across the country is increasingly out of reach for many, while Malaysian salaries have not kept up with rising property prices.

Hence, you should start saving up for a home as soon as possible. On average, a house in Malaysia would cost RM350,000, and you would need at least 10%, or RM35,000, to pay for the down payment.

2. Transportation

Public transportation is increasingly available and accessible in Malaysia, though this is largely true only in major cities.

Those who reside in less populated areas, however, may find personal transportation necessary to move around and find work. It could even be a primary factor when it comes to securing a job.

For those who are just starting out, saving for a motorcycle might be more economical. These are generally priced between RM5,000 and RM10,000.

If you have a higher-paying job, you can opt for a car, which might cost you anywhere from RM30,000 to RM150,000.

3. Children’s education

These days, you need to at least have a degree to get a steady job with a decent income. And this standard is getting higher, with more and more graduates also getting their masters.

Give your child an opportunity to have a better future – and, therefore, better income – by preparing for their education. Saving to invest in education funds is your best step forward in this situation.

There are a myriad of options, including the National Education Savings Scheme or SSPN-i.

Consider your children’s primary and secondary schooling, too. The government’s national education system may be more affordable, but some may view it as lacking in certain areas. Going down the private/international education route is much more expensive, but it would allow you some freedom to be selective.

Be aware of your options and work out the pros and cons to determine how much you can put aside for your kids.

4. Retirement

Soberingly, only about 4% of Malaysians can afford to retire. And given the rising cost of living, you need to think about your golden years and how much money you need to save to ensure you can live comfortably.

According to the department of statistics, these are the top monthly expenditures by Malaysians aged 65 and above, on average:

• housing, water, electricity, gas and other fuels: RM1,219 per month
• food and beverage: RM759
• restaurants and accommodation: RM598
• transport: RM452
• health: RM179

So, make sure you contribute more to your EPF or to a private retirement fund to secure your retirement.

5. Insurance

While many view insurance as a form of expense, it is more accurately a “savings” product. Basically, you are putting in money so the insurance company can pay out in the event of unforeseen circumstances or damages to your assets.

At the end of the coverage period, you will still get back some of your savings.

Types of insurance you should have include life, medical, disability, vehicle, and housing (fire). Remember, you never know what might happen to you, so it’s better to be prepared.

6. Vacation fund

Don’t underestimate the power of vacations: they are important to help you unwind and destress from the pressures of daily life. Furthermore, a vacation for you and your friends or loved ones can strengthen bonds and relationships.

Ideally, you and your spouse should both contribute to a joint vacation fund, and the money should only be used for a holiday upon agreement between both of you.

7. Emergencies

While insurance is important, it doesn’t cover everything. An emergency fund helps you to account for unexpected events and expenditure.

Put money regularly into a savings account that you can get a daily interest rate on, which also allows you to withdraw cash on short notice.

This way, you will still enjoy some interest on your savings, while being able to use the funds to deal with unforeseen circumstances.

This article was written by Su-Wei Ho for MyPF. To simplify and grow your personal finances, follow MyPF on Facebook and Instagram.