Do your money easily run out after payday ?

Are you always confused where your money spend every month?

Are you hard to paying credit card bills?

Financial intelligence what we meant was how smart we are managing our salary or money every month. Before we start to learn this thing, we have to know there are 3 human character in their spending habits:

  • Saver : this character type always spend their money for saving or investment or insurance then spend the rest of their money for shopping. Another specific character of type of person is always saving and hold something unnecessary and need consideration in buy something.
  • Spender : this character is always put the freedom in using money just for instant gratification. Easily spend money to buy unnecessary things. This character has no intention to saving their money in saving accounts, investment or else.
  • Avoider : this character is indifferent character, unconcerned about manage their money or something they forgot about their due date for mortgage, always avoid if there’s discussion about money. This characters motto “Let it Flow & Let it Be.

Which character are you ? Ssstt… only you know and there’s no right or wrong, the most important thing is the first step which is “Awareness” about lesson about managing your own money is important for your happiness later on.

“The Habit of managing your money is more important than the amount” – Harv T Eker

The secret of managing money was pioneered by Harv T. Eker in his book “The Secret of Millionaire Mind” that teach us that our managing habits has to be done without thinking how much our salary. There’s one unique quote is “Until you can show that you can handle what you’ve got, you  won’t get any more !!” We just going to get another gift from God if we could managing what we have now well.

Let’s we learn to manage our own money with “Money Jar” method. We have to split our money into 6 jars that ideal for we allocated when the payday comes.

  1. 55% Necessities 

Allocate max. 55% of your salary into your daily needs such as, electricity, housekeeping, foods, water, kids school bills, and even your house mortgage. When you start counting this expense is more than 55% then “START SAVING”.

  1. 10% Play

Allocate 10% of your salary for playing, entertain, or self gratification after one full month work. Our body and mind need feels happy and comfortable so we can create positive vibes and work. Remember ONLY 10%.

  1. 10% Dream

Allocate 10% of your salary for saving for your dream, it could be family vacations, Umroh, buy new gadgets, buy bags/shoes, or anything that you have dream of.

  1. 10% Financial Freedom

Allocate 10% of your salary in investment so it can made a passive income such as deposit, cattle, or invest this money into boarding house or rent house.

  1. 10% Education and Self Development

Allocate 10% for always improve yourself and competency to growth and learn new things from all kinds of subjects. People above the average are always invest their time and money in education and learn by reading books, seminar, workshop, or meet great people. 

  1. 5% Giving

Allocate 5% of your salary for helping other people or allocate this money for lend to your family or friends who needed. This life must be balanced and one of which is sharing for people who needs.

Let’s after reading this article, we invited all readers to more concern and smart in managing their money for themselves and their family later. (Hendra Phua)

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