It ain’t easy being liquid. But most of us understand the importance of saving good $$$ after witnessing the 1997-1998 Asian financial crisis their slightly older peers and parents went through. While many of us think YOLO is the adage to live by, living in the moment means not committing and ending up with zero dollars in the bank. But the big question is HOW?
First off, you need to plan. Also, you need to read this whole article to get how you can put your finances on track. As the experts at iMoney put it: “If you set a plan and know what mistakes to avoid. Identify a goal for yourself and understand saving will be able to help you achieve your goal, will help you see the bigger picture.”
And don’t worry about technical mumbo-jumbo — here’s a clearcut guide to creating an effective saving plan to save money. Congrats, future millionaire!
1. Create a budget
What is your monthly income and what do you spend on every month? Set down all your monthly commitments, such as car repayment, rental or home loan repayment, petrol and toll and other necessities. However, do not include variable expenses, such as buying a designer handbag.
Deduct all the total monthly expenses from your income and set out an amount from the balance for saving. You need a buffer to act as contingency. You’ll never know when your car will breakdown, which may cost an arm and a leg to fix.