Learn MoomooSort your money before investing — small salary, debt, borrowing to invest, and how to split your monthly savings
Many people ask "can I invest on a RM1,800 salary?", "should I pay off debt or invest first?", and "can I borrow to buy shares?". This page gives a five-step order, example splits for a RM1,800 salary and RM1,200 of monthly savings across ASB, money market funds and Moomoo, and why Daus doesn't recommend using borrowed money to invest.
“Daus, my salary is RM1,800. Can I invest?”
“I have credit card debt and a personal loan. Should I invest first so I can clear them faster?”
“If I save RM1,200 a month, how much should go into ASB and how much into Moomoo?”
These questions come from people who genuinely want to change their situation, and Daus respects that. But investing when your money isn’t in order usually ends with selling at a loss when an emergency hits. So before thinking about which share to buy, sort your money in the order below.
Five steps in order
Follow this order. Don’t skip.
1. Bills and necessities first. Rent or the house instalment, food, fuel, bills, money for your family. Investing money is the money that is left over after all of this.
2. Pay the minimum on every debt, every month. Don’t let any payment go overdue. A late payment record stays in CCRIS (the credit record bank loans check) and makes things hard when you apply for a home loan later.
3. Emergency fund. Build up at least 3 months of expenses somewhere the price is stable and easy to withdraw. If your work is irregular, aim for 6 months. When the car breaks down or your child ends up in hospital, you use this money, not sell shares at a loss.
4. Clear high-interest debt. Credit cards, overdue BNPL, expensive personal loans. More on this below.
5. Then invest. Money that can sit for 5 years or more untouched.
Daus keeps safe money in ASB (Amanah Saham Bumiputera, a unit trust for Bumiputera) and Versa Cash-i. Other options include bank fixed deposits and ShopeePay Money+. The differences between each one, including which are protected by PIDM (Malaysia’s deposit insurer), are in short-term money.
Debt first, or invest first?
A simple way to think: every ringgit you use to clear debt is a “return” you can be sure of, equal to that debt’s interest rate.
| Type of debt | Approximate interest rate | Clear first or invest? |
|---|---|---|
| Credit card (balance not paid in full) | Up to 18% a year | Clear first. No ordinary investment consistently gives more than this. |
| Personal loan | Usually higher than a home loan | Most of the time, clear first |
| Overdue BNPL / PayLater | Late fees pile up | Clear first |
| Car loan | Fixed rate, moderate | Pay on schedule, you can invest at the same time |
| Home loan | Among the lowest | Pay on schedule, you can invest at the same time |
The stock market’s historical average is around 10% a year, and even that isn’t guaranteed. If your credit card debt is charged 18% a year, every RM1,000 you clear “saves” about RM180 a year, with no risk. The stock market can’t promise that.
For home and car loans with low rates, most people pay on schedule and invest at the same time. Some choose to pay early because they feel calmer without debt. Both are reasonable choices, depending on what you’re comfortable with.
If your monthly instalments are already more than half your salary, or you’ve started borrowing to pay other loans, stop thinking about shares for now. AKPK (Agensi Kaunseling dan Pengurusan Kredit, the credit counselling agency under Bank Negara) provides financial counselling and debt management programmes for free. Investing in shares is not a quick way out of debt.
“Can I borrow to buy shares?”
Daus doesn’t recommend it. This includes personal loans, cash from a credit card, and financing taken to invest in shares.
The reasons are simple:
- Fixed instalments, unfixed market. You have to pay the instalment every month, whether the shares go up or down.
- Doubled loss. If the market falls 20%, you lose 20% on money that isn’t yours, and you still have to pay it all back with interest.
- Pressure leads to wrong decisions. People who invest with borrowed money are more likely to sell in a panic, because they need that money.
Margin in Moomoo is also a kind of loan, and it’s switched on by default. How to check and switch it off is in the margin tutorial.
Daus himself doesn’t take ASB financing (ASBF). Daus’s ASB was bought with Daus’s own money.
Example: RM1,800 salary
Take an example of a single worker with a take-home salary of RM1,800, renting a room.
| Item | Per month |
|---|---|
| Room rent, food, fuel, bills, phone | RM1,350 |
| Give to parents | RM200 |
| Left over | RM250 |
With RM250 a month:
- Phase 1 (month 1 to about month 16): put all RM250 into the emergency fund until it reaches about RM4,000 (3 months of expenses).
- Phase 2: once the emergency fund is enough, split it. For example RM150 into stable savings for a medium-term goal, and RM100 into long-term investing.
For shares, Daus suggests opening a Moomoo account once you have RM1,000 ready for the first deposit, because the fee on each order takes a large percentage if the capital is too small. The reason is explained fully in small capital, how to start. While you’re saving up, you can learn using Paper Trading first.
Looks slow? It is slow. But people who start with an emergency fund rarely have to sell shares at a loss, and that’s what keeps them investing for years.
Example: saving RM1,200 a month
This is a common question: “I have RM1,200 every month to save, how should I split it between ASB and Moomoo?”
The answer depends on when the money will be used, not on which platform has the highest return. Here’s an example for someone who already has a 3-month emergency fund and wants to get married in 2 years:
| Purpose | When it’s used | Where to put it (example) | Per month |
|---|---|---|---|
| Top up emergency fund to 6 months | Anytime | Money market fund (e.g. Versa Cash-i) | RM200 |
| Wedding money | Within 2 years | Stable-price savings (e.g. ASB, FD) | RM600 |
| Long-term investing | 5 years or more | ETFs in Moomoo, bought automatically through RSP | RM400 |
After the wedding is done, that RM600 portion can be redirected to the next goal, for example a house deposit, or added to long-term investing.
These numbers are only an example. What matters is the way of thinking: separate your money by the date it will be used. Money needed within 3 years doesn’t go into shares, because shares can fall 20% to 30% in a period like that.
Some people build up in Versa Cash-i first until they have RM1,000, then cash out to their bank account and deposit to Moomoo. That’s a reasonable way. Versa and Moomoo can’t transfer money directly between each other, so the money has to go through your bank account first. How to cash out of Versa is at versa.dausdk.com.
When your finances change: reduce, don’t stop completely
Got a new commitment, like a car instalment or a new baby? Don’t feel guilty if you need to reduce how much you invest each month.
- Reduce the amount of your RSP first, for example from RM400 to RM100. The habit of buying every month is worth more than the amount.
- Don’t sell existing investments for everyday spending. If you’re forced to, that’s a sign the emergency fund needs topping up.
- When things are stable again, raise the amount back up.
How to change the amount or pause your RSP is in the RSP tutorial.
Summary
- Order: necessities → minimum on debts → emergency fund → clear expensive debt → invest.
- Credit card debt is up to 18% a year. Clear it first.
- Don’t borrow to invest.
- You can start on a small salary, but start with the emergency fund.
- Split savings by the date the money will be used. Only money for 5 years or more goes into shares.
This content is educational sharing, not financial advice. The order and figures above are general examples; everyone’s situation is different.
Got your long-term money sorted? Now open the account.
Once you have RM1,000 ready: register through Daus's link, enter the code DAUSDK37 under "Special Deposit" BEFORE your first deposit, deposit RM1,000 within 30 days of registering, tap Claim yourself, and keep the deposit in for 60 days. About RM150 for a RM1,000 deposit, up to RM1,500 for a larger one.
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