Money....who doesn't love money? although some wise philosopher said :
money can't buy you love and happiness. Amen to that?
at some point, I might agree with their thoughtful thought. But, don't you agree that
money can buy you time & circumstances? and somehow it will lead to happiness according
to your lifestyle standards.
let have some example, if you have money, you can buy tools to help you to
achieve your dream goal. let's say laptop, modern gadget that help thousands or millions workers
to meet their deadline. when you're accomplished your goal or deadline, you'll granted with bonus
or commission that you can use depends on you or loved one needs. happy right?
other simple example, let's say you have to travel, of course there are lot of transportation to choose.
usually more cheaper = takes times to arrive at your destination = save your money but wasting your time & energy. In other hand, if you're using more expensive transportation, off course it'll save your time but more to spent. This is not a absolute scheme, it's just for illustration purposes.
imagine, when all of your income at the end of the month you used it to pay your bills,
credit card, monthly needs and left you nothing for savings. When you cannot managed your income,
it'll cause you trouble and brings depression. since you'll have a lot or worries for your future financial plan.
In financial article, I always read that you have to separate your income for regular expense
and savings, with 30% ratio from your main income. Somehow i found that method bit out of date.
As for myself here's how i managed my money :
My Monthly Income 100% divided :
- 50% savings (use separate bank, and never ever bring the ATM with you)
- 30% bill / needs
- 10% for fun / wants (i spend most of them in airline ticket LOL)
- 10% emergency (usually it goes to saving)
Is it effective? YES! I find this method effective and been stick with this for almost 10 years.
while most of people plan vacation like once a year, for me it's more or less 8-10 times a years.
Since i love traveling a lot! although i'm not a gadget freak, i do have update gadget to support my daily activities. With this method i can save a lot of money for my future investment and while doing that
i also can enjoy life without putting too much debt/saving pressure.
The key is smart managed and spend wisely.
"I don't know where to start to manage my money :("
Google it, read a lot of financial article or join a financial community like LiveOlive.com. This website provide a lot of financial tips and advise. Try to use their Budget Tools , help you to manage income and money. Not like other financial website, they use a "friendly" terms and descriptions to help us understand more.
hope you find this useful, my do's and dont's habit :
1. don't use credit card more than one. worse! over limit from your monthly credit quota
2. don't do impulse shopping. i know it hard especially when it comes to Great Sale Season!
3. open 2 bank account, 1 for saving (like i mention before, leave the ATM at home)
4. invest, you can try invest in gold for long term safety plan or other that suits your needs.
5. write down your monthly expense, so you can track down everything, you can install it on your phone
6. stop buying food frequently at restaurant, learn to cook. more healthier anyway
7. buy new thing, get rid the old thing.
8. before buy anything, give it a thought "do i need it or i just want it?"
9. Don't go shopping if you're hungry, trust me. you'll ended up buying tons of unuseful stuff/food
10. do yearly budgeting for next year expense, that way you'll have a safety savings & good plan.
11. find extra income!!! this is the most essential part
12. good luck :)
until next post,