Cost-of-living pressures remain real, even as the government rolls out new measures to cushion the impact.

This week, Prime Minister 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 aid for eligible groups.

These initiatives won’t make anyone rich, but used wisely, they can support better financial habits. Here are five practical, realistic money moves Malaysians can consider as the year begins.

1. Treat the RM100 SARA credit as planned money, not spare cash

In February, all Malaysians aged 18 and above will receive a one-off RM100 SARA credit, credited through the MyKad system and usable at selected retailers.

It may not sound like much, but how you treat this money matters.

Instead of spending it impulsively, plan where it goes before it arrives. Use it to offset groceries, household essentials, or school supplies – expenses you would have paid for anyway.

This frees up RM100 from your own income, which can then be channelled into savings or debt repayment.

The key is intention: when assistance money is treated as part of your budget, it strengthens your overall cash flow rather than disappearing unnoticed.

2. Use monthly SARA aid to stabilise essentials, not lifestyle upgrades

For eligible households, the government has expanded monthly SARA assistance starting January 2026, aimed at helping cover basic necessities.

This regular support works best when it absorbs everyday essentials such as food, toiletries, or basic groceries. When these costs are partially covered, your own salary becomes more flexible.

Instead of upgrading your lifestyle, use that breathing room to rebuild savings, pay off arrears, or reduce reliance on credit cards.

For lower-income families especially, this approach turns government aid into a stabilising tool rather than short-term relief. Over time, that consistency can make monthly finances feel less fragile.

3. Start or rebuild an emergency fund with small, realistic targets

An emergency fund remains one of the most important financial buffers, yet many Malaysians still don’t have one.

Unexpected medical bills, vehicle repairs, or school expenses can quickly derail a month’s budget. Use early-year cash support, bonuses, or tax refunds to kick-start this fund.

Even RM500 set aside is a meaningful start. Aim for consistency rather than perfection – topping up a little each month is better than waiting for a large lump sum that never comes.

In a year where cost-of-living remains a national concern, having your own financial cushion provides peace of mind no government policy can replace.

4. Audit spending habits the Malaysian way – weekly, not yearly

Many people promise to “budget better” but only review their finances once a year. A more practical approach is weekly tracking.

Write down everything you spend for seven days – from nasi campur lunches and kopi ais to tolls, petrol, and online shopping. Patterns emerge quickly. You may find that small daily expenses add up more than expected.

With SARA credits now accepted at more retailers, especially neighbourhood grocers, aligning assistance with essentials becomes easier.

Once you see where your money actually goes, adjusting your spending behaviour feels less abstract and more achievable.

5. Revisit savings and long-term goals while cash flow is clearer

With clearer timelines for government aid disbursement in 2026, Malaysians can plan ahead with more confidence.

This is a good time to revisit longer-term goals – whether it’s growing EPF savings, starting a fixed deposit, or setting aside money for education or travel.

Instead of vague resolutions, break goals into monthly targets aligned with your pay cycle. Even modest contributions build momentum over time.

Government assistance should support stability, but real financial progress still comes from personal planning. Starting the year with structure helps prevent finances from drifting on autopilot.