Manage your money! Or they will manage you!
Dear readers,
Do you ever wonder the reason why you don’t have enough money every month? Does your dinner became ‘Maggi goreng’ when it approaches the end of every month? If you are the one that live paycheck to paycheck, you should start to change now.
Money is considered as one of our treasury. Most likely people will say money can’t do everything. But the fact is, without money, we can’t do most of the things! As money is so important in our life, we should rather manage it well instead of spending until out of it.
The problem now arises since we are still young. In Malaysia, we don’t have a proper education that teaches the students to manage their money. Some students have no idea of how hard to generate money. Instead, they have a lot of ideas to spend money. As all of us, we learn the financial education from our parents. But the thing is, what they taught might turn out something wrong!
Just imagine the ways that your friends around you managing their money. You will find out that they have a big differences between each of them. Some of them are real rich kids who just spend their parents’ money to buy things that we can’t afford at the age. Some will know how hard to generate money, which spend money in defensively and economically. Then, some of them will try not to take money from their parents, but rather earn money themselves. These are the effect of improper financial education. The way of kids managing their money mirrored the parents’ personalities.
However, everything is not too late if you start to change now. Manage your money and not vice versa. Here are some methods (easiest to toughest) for you to manage your money well:~
- Save your money into Piggy Bank!
When the start of the month, draw out a
minimum 1/10 amount from small portion of money to put into “piggy bank”. Then, never draw out the money from the piggy. After several months or years, you will see some savings, at least.
2. Save into the bank!
Unlike the first point, this is where you put the portion of money into the bank. A slight difference of this method is that after certain years, your amount saved will increase as the bank will credit a certain interest to your savings after a year, probably 3.5% per annum.
3. Invest in Mutual Fund
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. While you just portioning certain amount into the fund, after some times, you would be able to get a considerable income. However, the biggest advantage of this way is that you no need to take risks of losing money, by trusting the professionals to help you.
4. Invest yourself!
This is the toughest and riskiest way as compared to the listed above. You should do research by yourself, understand the concept of securities and others. You have to put in extra effort but at the same time you may get higher return!
So, all of above are methods that I suggest for youngsters nowadays. Youngsters should start to save and manage your money now before it is too late. You will appreciate and grateful that in future you are able to manage your money well when you are young.
Have a nice day!