These startups challenge all Malaysians to save RM1,000 in 30 days
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Local FinTech startups HeyAlfred and Pod announced today a collaboration that will encourage better money habits for Malaysians – by getting them to save RM 1,000 in 30 days, just in time for Hari Raya.
Personal finance experts have long touted the importance of keeping an emergency fund worth at least 3 to 6 months of living expenses. Yet according to a 2019 study by Bank Negara, 75% of Malaysians don’t even have RM1,000 saved.
In a 2019 21st World Bank Group’s Malaysian Economic Monitor report, Malaysian millennials or Gen Y – the generation born between 1981 to 1996 – spent well beyond their means due to “impulse-buying behaviour, easy access to personal loans and credit card financing, the want for instant gratification and seamless online purchasing”. About 40% of them also admitted to spending beyond their means.
However, a global survey by Standard Chartered recently found that Malaysian millennials are taking a step in the right direction in the wake of Covid-19, and are the most likely generation to be in active pursuit of long-term financial goals. 28% of millennials have started using a money management or budgeting app since the pandemic began, while another 62% plan to do so in the next 3 years.
“We launched The Simpan Challenge in an effort to support millennials in their financial growth journey,” said Tengku Muhammad Shah, CEO and co-founder of HeyAlfred. “The pandemic has made people more cautious with their spending – we’re here to guide you with actionable, achievable steps you can take to make the most out of your savings.”
Those who succeed in completing this ‘Simpan Challenge’ will not only have an extra RM1,000 in their savings but also get rewarded their share of a cash pool prize. The cash pool prize increases with each new participant who joins the challenge.
For more information, visit the Simpan Challenge website here.