Today marks the final day of traditional Chinese New Year celebrations, also known as Chap Goh Mei, which is the Hokkien term for the 15th night of the Lunar New Year. We hope those who celebrate got a chance to spend time with loved ones, indulged in tasty treats and received many Ang Pao’s.
Finally, the wait is over. According to Chinese tradition, today is the day you tally the number of Ang Pao’s received throughout the Lunar New Year. It’s always a pleasant surprise no matter how much amount of Ang Pao you have received.
Next, comes the question. What do people usually do with their Ang Pao’s? Depending on one’s preference and situation, Ang Pao funds are mostly used for a variety of purposes.
Paying Off Debt
Given extra wealth on hand, one can start paying on whatever debts one has incurred over the past year. Debts on things like credit cards, cars, student loans and education all count here. In addition, paying down the high-interest debts is also a wise move to prevent one’s debt from snowballing.
Starting or Refilling an Emergency Fund
Embracing the fact that life is full of unknowns. What will happen next is always suspenseful. When a storm strikes, all one can do is ride it out as safely as possible. This serves as a little nudge to get one to start an emergency fund right away if one hasn't already. If you've exhausted your emergency savings, it's time to get back on track and refill your funds each month until it is enough to last you six months.
Savings
Most parents will hold on to their kids' Ang Pao funds if they're too young to manage them or worried about them squandering it. For their kids' futures, parents may save sizable sums in the highest-rate savings accounts available. Over time, their child will pick up the habit of saving and be better prepared for his/her financial future. As a side note, Malaysia's highest interest savings account is 4.15% p.a. When one's account balance reaches a certain threshold, the effective interest rate (EIR) may be lowered depending on the terms and conditions of the bank where one has an account.
Spending
Do you succumb to your intrusive thoughts and start spending on purchases, such as buying new clothes, electronics, or home goods? While investing for your future is important, it's OK to treat yourself to a little pampering occasionally. Spending it on something nice for yourself is sure to put a smile on your face and lift your spirits.
Giving back
Your generous nature may lead you to treat your loved ones to something they've always wanted or give to those less fortunate. The saying goes, happiness is doubled when it is shared. Some individuals set aside a portion of their Ang Pao funds and give to a charitable cause of their choice.
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Investing
Are you debt-free and have a savings cushion in place? The majority may choose to grow their wealth by diversifying their assets such as stocks, bonds, real estate, or other forms of investments. While some investments require a large capital, at Capsphere you can put your Ang Pao fund to work and earn up to 18% p.a. securely. This video will explain what happens to your investment. Not only will investment grow your funds over time, but you can choose to opt for Auto Invest and your returns will be reinvested and compounded over time. Not only that, but you can also now share your wealth. We're giving out RM50 when you refer friends and family. So, come on and share your good fortune with your loved ones by clicking here.
Okay, so tell us: Which one are you? As you can see, there is more than one way to use Ang Pao. How you use Ang Pao funds —whether to invest or spend—can help you to get closer to your financial objectives and be prepared when life tosses curveballs your way.