Today, it’s difficult to keep ourselves away from any form of financial debts. From educational loans to credit card repayment, we are obviously spending more than we earn no thanks to the rising inflation as well as our own uncontrolled spending habits. As a student or young adults, we might be able to depend on our parents to "provide" the needed money to "survive", though I disagree with the saying that "it’s okay to get money from parents, they are supposed to take care of us anyway!". Yes it’s fine to ask money from parents, but not when you are using it merely for unnecessary purposes. If you’re employed and thinking about ways to grow your hard-earned money rather than ending up in serious debts, here are my personal tips of managing your finance: 1. Pay yourself first – Every month when you get your salary, always pay yourself 10% of the amount ie: if you’re earning RM800 per month, pay yourself RM80. "Pay" here actually means "save". While RM80 seems small, after one year, you’ll have RM960! Of course, if you can save more, the better. You can always save that 10% in a different bank account, and treat it as EMERGENCY ACCOUNT. Only "touch" that money when you really need it. 2. Do not over spend – Once you get your pay and after paying yourself, deduct all "fixed payments/repayments" immediately, which can includes house rent, loan installments, and utility bills. The amount left is your spending limit for that month. It is also advisable to keep a record of your spending and check it from time to time, to make sure that you’re not exceeding the budget limit 3. Avoid more debts – If you have been "tied up" with loans such as PTPTN or car loans, which you need to pay every month, avoid getting more debts by borrowing money to buy things that can decrease in value over time like furniture or technical gadgets as well as signing up for credit cards. Remember, the more you borrow, the greater financial burden you’ll have! 4. Learn to invest – Yup, investment from a young age can be beneficial. For starters, do get involve with some low-risk investments like buying unit trusts, insurance or even investing in online business such as using a blog to generate income. Of course, if you’re daring enough, you can always get loans to invest in potential real estate or properties. But before yo start, get in touch with some experts or do some research! Read up the books by Azizi Ali to get some further inspiration! Well, hope my tips help! I believe if you are discipline enough, the money you spend on unnecessary things can always turn to bigger money if you learn how to manage your finance!
