A new year often brings renewed financial determination, but for many Malaysians, 2026 begins with a familiar concern: how to make their ringgit go further.
While cost-of-living pressures persist, the government has introduced new measures to help ease the burden. This week, Prime Minister Datuk Seri Anwar Ibrahim announced updates to the Rahmah assistance framework, including a one-off RM100 Sumbangan Asas Rahmah (SARA) credit for all adults and expanded monthly SARA assistance for eligible groups.
Although these initiatives may not dramatically change household finances, using them strategically can support healthier money habits. Here are five practical financial steps Malaysians can consider as the year gets underway.
1. Plan the RM100 SARA credit before spending it
Starting February, Malaysians aged 18 and above will receive a one-off RM100 SARA credit via the MyKad system, redeemable at selected retailers.
While the amount may seem modest, its impact depends on how it is used. Instead of treating it as extra cash, plan its purpose in advance. Direct it towards groceries, household items or school necessities — expenses that would have been paid regardless.
By covering these essentials, you effectively free up RM100 from your own income, which can then be redirected to savings or debt repayment. When assistance money is treated as part of a budget, it strengthens overall cash flow rather than being spent without notice.
2. Use monthly SARA aid to secure essentials, not upgrade lifestyles
From January 2026, eligible households will receive increased monthly SARA assistance to help with basic living costs.
This form of regular aid is most effective when it absorbs everyday necessities such as food, toiletries and basic groceries. With essentials partially covered, household income becomes more flexible.
Rather than increasing discretionary spending, the extra breathing room can be used to rebuild savings, clear overdue bills or reduce dependence on credit cards. For lower-income families, this approach turns government aid into a stabilising force rather than short-term relief.
3. Build an emergency fund with realistic, achievable goals
Despite its importance, many Malaysians still lack an emergency fund.
Unexpected expenses — from medical bills to vehicle repairs — can quickly disrupt a household budget. Early-year assistance, bonuses or tax refunds can provide a starting point.
Even setting aside RM500 is a meaningful first step. The focus should be consistency, not perfection. Regular small contributions are far more effective than waiting for a large sum that may never materialise.
In an environment where living costs remain uncertain, a personal financial buffer offers peace of mind beyond any policy measure.
4. Track spending weekly, not once a year
Many people resolve to budget better but only review their finances annually. A more practical habit is weekly tracking.
Record all expenses over seven days — from daily meals and coffee to fuel, tolls and online purchases. Spending patterns often become clear very quickly, revealing how small, frequent expenses add up.
With SARA credits now usable at more retailers, including neighbourhood shops, it becomes easier to align assistance with essential spending. Awareness of real spending habits makes adjustments more manageable and less overwhelming.
5. Reassess savings and long-term goals while cash flow is clearer
With clearer timelines for government aid in 2026, Malaysians can plan their finances with greater confidence.
This is an opportune moment to revisit longer-term goals such as boosting EPF savings, starting a fixed deposit, or setting aside funds for education or travel.
Instead of broad resolutions, break these goals into monthly targets that match your income cycle. Even modest, regular contributions can build momentum over time.
While government assistance helps provide stability, lasting financial progress still depends on personal planning and discipline.
