Here is the difference between rich and poor people handle the money.
The rich people:
Recorded the flow of money
Plan before use
Never cash out the saving account
Invest rather than spent
The poor people:
Spent without records it
Cash out from saving account on and off
Actually, the poor one always spent, spent, spent… Until one day out of budgets.
Do you know how to control yourself like a rich people?
What do you need if you want to make a change?
1) Know yourself and your limit
First, you have to understand yourself. Find out what is your weakness, and what makes your pocket always empty. You can always stop yourself before it is too late.
Recall back what do you paid last time in a month, start from the time you spent the big money ( >RM 100 ). Examples: This Jun 2018, I spend RM 1500 for the hair treatment only. If your salary is RM 2500, will you pay for it?
Do you think is it worth?
Is it out of the budget?
Are you regret?
Emm… For me, it is just nice, because I pay with cash back credit card, and it is under monthly installment. Haha~.~
2) List it out into categories, prioritize it.
Ok, list out what is your preference, and what makes you want to buy so much. From here you can see where your money goes easily.
At the same time you need to categorize it also:
unnecessary but favourite: clothes, cap, scarf, brand new phone, toys, movies Etc..
important: bill for electricity, water, wifi, loans, credit card bill, car maintenance, insurance
Saving: medical urgency or emergency, study, retirement life, and travel.
It is very clear, that the priorities will be the bills and the savings.
Now you have an idea about how to spend money wise? So, you just need to stay away from all this temptation and be cool.
You may keep the list with you, to remind yourself don’t go near the related shop. You won’t see and you won’t buy.
But you can make a decision on when you can shop at a certain period of time, such as big offer day: the National day, Labor day, Father and Mother’s the day, Christmas sale, year-end sales, even though your birthday. Certain restaurant or shop offer discounts for the birthday of the member. And always remember your limits, don’t go too far.
Control, control, control yourself!
For the unnecessary item, you may list out whatever is necessary for future, and prioritize it. You can plan for which item you need to buy first, and later.
- Chili source finish, no chili no life.
- Small hole at the sport shoes. Barely visible yet.
- Birthday gift for the love at two months later.
- Feel like want to change handbag.
- Shoulder pain and headache due to the pillow.
Wow, I just simply list out whatever I want to buy, and straight away that are so many things to spend later on.
Here is how I prioritize it according to the needs.
The first one will be my top priority following the next one.
1) a good quality pillow ( urgent ) because it affects health. Budget: max RM 200.
2) chili source ( important ), chili is my life. Budget: max RM 5.
3) birthday gift ( important ), start to survey the price and the quality. Budget: max Rm 100
4) sports shoe ( unnecessary ), can self-repair.
Budgets: RM 5 for the glue vs the new shoes prize: max RM 500
5) handbag ( unnecessary ), Wait for year-end sale. Budget: RM 100
After categorized it according to the needs, the idea becomes clear and I could just spend max RM 210 in this month, and max RM 100 for next month. Compare to I buy all of these, it can spend up to max RM 905.
To save more, try DIY. You will learn and gain more skill to survive. Haha
Now let’s see how to plan once you get your salary.
Categorize it follows the priorities also.
Example: Salary RM 2500
Important: fill up this column first, and never drag the payment of the day.
electric and water bill RM 100
Wifi RM 30
Credit card RM 125
Insurance: Rm 270
Car petrol RM 200
Parents: RM 350
General: daily spends
Food RM 350
Entertainment RM 50 for the movie?
Pocket money: RM 230 for any urgency for daily life.
Saving: never touch it, save it without the bank card or choose the bank locate far from your reach.
– emergency:RM 200
– travel: RM 200
– retirement life: RM 200
– study RM 200
Some article says that we should plan it into a certain percentage of salaries for saving, and dairy general spends. But I find it too hard to achieve it because of the individual need of spending is different, and sometimes it can’t cover for all.
we use 30% of salary for saving:
RM 750, would this suitable for me? No really what I want.
So, I prefer to use the “fill in the blank ”style, Just to fill the collum of the categories, start from the importance > general > saving, which is not urgent. And if you have a baby fund, just add on the column of important. It is flexible.
Here is the table for the salary planner. I made it myself and I feel that it is useful. Feel free to try it and let me know how it works for you.
Just plan for it and keep all under control. Well done, man!
All this is for those who had limited income to use,
try to think that what happened when your income is increased?
You can extend your limit of spend and have a more interesting life.
What if you have earned extra RM 1000, or RM 2000, or RM 3000?
Poor make us think poor.
Don’t let poor restrict your mindset.
Find a way for it. There are more chances then what you think.
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Ok, I am done with my sharing for today, see you next time.