Start savings by using 50/30/20 Budget Rule.
Is there not enough money? When is your salary spent before the end of the month? This is due to poor financial management on your part! Even with a monthly salary of RM10,000, you will be able to make ends meet if you continue to live in this manner.
If you want to get rid of your money problems in the new year, use the 50/30/20 Budget Rule to divide your salary into three parts when you receive it.
The 50/30/20 Budget Rule divides a salary into 50%, 30%, and 20%. 50% goes toward living expenses, 30% goes toward saving and investing, and 20% goes toward self-education and entertainment. Before you begin implementing this income distribution method, you should set aside 3 to 6 months of emergency reserves for use in emergencies.
Then, when you get your paycheck each month, the first thing you do is deposit 30% of your pay into a bank account for savings and investment. Every month, you will see the funds in your savings and investment accounts grow, giving you even more incentive to keep going.
After you have saved 30% of your salary as a savings and investment user, you must spend 50% of your salary on living expenses such as rent, water and electricity bills, telephone bills, and so on. This 50% wage includes three meals per day. You can choose to record every expense if you can, so you know where your money is going.
The remaining 20% of salary is spent on self-education and entertainment. You can spend this 20% on movies, travel, a new phone, and other things.
Of course, everyone should think twice before buying anything. Apple phones are superb, but do you really need an iPhone? Although cheap Android phones occasionally cool, they will pass after a while.
Also, the Toyota Vios is beautiful, but it drains your bank account every month; is it worth it? The most basic function of a car is to transport people, not to show off. Young people can start by buying cheap domestic cars to reduce their monthly living expenses and save money to increase the value of their money.
Finally, I hope everyone remembers the formula “income – saving = spending,” which means that when you get your paycheck, you should save first, then spend the rest of your paycheck and do what you can.
