Tuesday 7 April 2015

How to manage your finance efficiently?

April, a challenging month for all Malaysian, as the government had implemented GST 6%.
Sidetrack for a bit, as of today, it has been roughly my 10th month working after my graduation in May 2014. I hesitated when the job was being offered to me, it’s timely when I think about it now, I believe things happened for a good or bad reason under God’s grace. I took this job to challenge myself because I would be doing something totally different from what I had studied.
Entering the career world, you should not expect a high paying salary especially if it is your first job. However, it is the beginning of your adulthood and how you learn to manage it.
As for me, I was given a fair salary for a fresh graduate without prior working experience. Working and taking ownership of many things on my own such as paying my rent, bills, food, petrol & etc on my own is a very fulfilling experience. To earn your hard earn money and spend as you like.
In the first 6 months of working, I went overseas twice; Perth, Australia in June and South Korea in September, not to brag about it, but it involves a lot of money. Praise God, I was given 10% increment after joining the company for six months. I do think the increment is a reason for me to save more, right?
So how to manage your fund with the little you have left? To be honest, I spend all of my income from the 1st 6 months of working. Bummer right? If you can avoid spending money, please do so. Money doesn’t grow on trees children, plus try not burden your parents too.
In 2015, my resolution is to SAVE MONEY as the 10% increment has encouraged me.
My “honeymoon period” has ended, it’s time to do some serious saving. You know what? I planned to go back to South Korea again in October & to add on, a new phone early next year. So how am I going to save?
Here’s some basic step to save money efficiently:
Rule of thumb: “Never spend more than what you can afford!” Live & breathe with this concept, you’ll have a sustainable future, I guarantee or at least have enough money in your bank account till end of the month.
Step 1: Budget your flow of income
List down all the items you spent on, for example rent, utility bills, eating out, petrol, toll, internet bills, credit card bills & etc. Estimated in the maximum on how much you will use in each category, then minus the amount you earned each month, whether it was a deficit or surplus, you must do some changes to change it into a surplus rather than a 0.
Step 2: Open a separate saving account
“Out of sight so out of mind” theory? Opening a separate account will really help you from overspending. Set aside a realistic amount to save, as I had mentioned before, I’ll be putting aside an amount for a trip and a phone. So that amount will be in a separate account, so I won’t touch it till it reaches maturity (sufficient amount for it, estimate your trip expenses & the item you plan to buy.)
Step 3: Investment or Fixed Deposit (use your money to make more money)
Let your money work for you too! I’ve been living with my pocket money (monthly salary), so where’s my savings since young? I had placed it in investment or rather a unit trust funds. Of course you have to do research on where to invest your money in, seek professional consultant or an experienced investor (for example, my father). I’m making good money annually. Earning few hundred ringgit per month, not bad right? It’s a substantial amount in a year. Never touch this account as the compounding interest will be affected if you do it. I haven’t touched it for at least 5 years now. It could be savings for your marriage fund or house funds in future. ;)
Step 4: Get rid of your credit card or pay full amount monthly
It is an awesome feeling when you received your 1st plastic. But be cautious of your spending habit, interest rate can go as high as 18% for repayment if you’re paying the minimal amount monthly. I usually pay the bills on my credit card every time I use the card, so that it can tally with the amount of cash I have in hand. I strongly dislike when people owe me money, vice versa. If you can’t succumb the habit of swapping your card every time, I strongly recommend you to terminate your card and use a debit card instead. The reason why I have a credit card is for convenience’s sake like to pump petrol or to use when traveling oversea. My outstanding bill for my credit card is always Rm 0 whenever I get my monthly credit card statement.
Step 5: Discipline and patience.
I must say it takes lot of discipline & patience to see it through, but it will be a fulfilling journey to achieve financial breakthrough. To prevent you from falling into a vicious circle of living from paycheck to paycheck.
There’s about 60 young Malaysians declared bankrupt daily in 2013, I assumed there will be more in 2015.
So, fellow young Malaysians, financial breakthrough isn’t an impossible dream. Let’s do our part to educate and encourage each other to achieve our respective financial goals. Our future determines our children’s future as well. God bless! 

Here’s some photos that were taken in South Korea by me ;) 









Sylvie Leu
Marketing Executive & Optician