Cleaning and decluttering my house and I was about to throw these papers out. They have got useful financial advice stuffs there. So, before I get rid of them, I am going to write what they are all about
Ok the first one is about how to split my monthly earnings – there’s no percentage there, I guess it depends on what you prioritise. Each month, do:
Split earnings into:
- house bills
- my bills
- spending account
- emergency
- dream savings
Revise and review:
- spending
- earning
- debt
- investment
Managing money is not all about saving and earning money only. From another source (which I forgot from where), money is used to create the story of my life, to build the life that I am content and happy with. The rule for spending and saving is to align them according to 4 matrices – Need, Love, Like and Want. Everytime I want to spend or plan to use money, consider factors like, do I NEED it? Do I spend it towards something that I LOVE? So it is Need and Love all the time.
Another tips is to save for ‘5 year from now’ goal. Ideally, save up to 25x monthly living expenses, the rest invest in shares and index funds. Saving up to 1 month expenses is already so hard, I don’t know how can I build up to 6 months, what more 25 months. I should sit down and strategise how to slowly build my wealth. Now that I am more aware of money-making tools and skills, it is now up to me how to use them. Slowly and surely, I can!