SAVINGS FIRST.
~ Stolen mindset.
If your money is stolen, can you get it back? Least likely. How you live on that month then? No matter how, you will spend the rest of your money on that month to live. You may cut off some expenses or pending some expenses that can be postponed. In short, you still can live with the left-over money on that month. Why don’t you steal your own money? Save it in your “Post One” bank account and never ever take it. It is your stolen money that you can’t get it back.
I write this, assuming you are doing right on point number one. You have set your monthly budget for each expense category. Assuming you are not spoilt children who don’t care about it and just spend your money recklessly as long as your emotional wants are fulfilled.
“Remember: It’s not the matter of how much you can earn. It’s how much you can save.”
Every time you earn your income, save around 10% to 35% of it in your “Post One” account, depending on how much you earn, and how much your monthly expense. But you must at least save 10% of it in your “Post One” account as the stolen one. Then you can use the rest of your income to pay your debt and your bills. Why 35%? So far for now, I manage to save 35% max so I can live well with you. If you can save more than 35% and you can live well, you are more successful than I am then.
~ Yearly Expenses must be prepared every month before due.
You surely will have expenses that must be paid yearly. For now, I have: 1. Insurance, 2. Property Tax, and 3. Vehicle Tax which I have to pay them yearly. So, before it’s due date, I divided the expense by 12 and save it every month.
Besides that, I also save some money to buy new Handphone, Laptop, Car Maintenance, and car. If my money saved for these categories is still not enough, I won’t buy it.
So, “Post One” is the stolen money. For the yearly expense I have Insurance Saving Post, Property Tax Saving Post, Vehicle Tax Saving Post. The other saving posts will be: Handphone saving Post, Laptop Saving Post, Car Maintenance Saving Post, Car Saving Post, and Holiday Saving Post. I know that in 2-or-3-years time, we need to change our Handphone and Laptop. That’s why I have that saving post.
~ X Factor Saving Post.
Another Saving Post you must have is “X Factor Saving Post”. This saving post doesn’t need to be much. Just put a small amount of money in this post routinely, for buying or paying something you need to pay outside all category you have set. “Small is relative, Papa,” you may asked me this. How much is small? As long as it is routine, you can save below 2% of your income for this post.