*I'm really not an expert when it comes to money and no, I don't sell funds or whatever. I've enabled comments for this post and you're free to share your own tips, to rebuke or debate on this topic.
**If you're freaking rich already, skip this post.
Okay, I'll admit that this will probably be one of the most boringest post I'll make but I just had to say it. And no Elisa, I'm not hinting anything to you. I know you're doing fine and have a good head on your shoulders... I think. XD
I know that it's really none of my beeswax how anyone spends their money and how everyone has their own points when it comes to money and savings but this are mine. I also know it's not going to sit well with most, I'm apologise if I bore you to tears.
A while ago, Elisa did ask me, how is it that despite not working consistently, studying and all, I've always seem to have a bit to spend? I don't ask from my parents for one so why? Well, the truth is, the money was from the time that I did saved. All through the years, the 'ang pow' money really came in handy.
I'll take you back to my younger days and when I developed this saving habit of mine. When I was younger, my mom favoured my elder sister over me and would splurge on her and not me. My dad was on the stingy side so I never really get to buy anything I wanted unless I sulk for days and days and days which I seldom do, it's tiring. It really hit me hard one Chinese New Year when my mom bought my sister several hundred ringgit of clothes and when I asked for a skirt (the skirt cost less than a hundred and I told her I'll pay for the shirt myself) I earned myself a long nagging and I really had to literally beg for the skirt. It was then it hit me that if I don't take care of myself, none is going to.
*Things has obviously improved through the years and mom now would always offer me money and even throw a tantrum when I refuse her money but the lesson has been learnt. I don't blame my mom as it was a good lesson in the end.
Sometimes I do regret the time when I never bought the things I wanted but sometimes I'm glad. I saved most of my allowance I got each month from my parents and put them into the fixed deposit ( the interest was better) every once in a while. The only thing I allowed myself to splurge on were books and comics. I couldn't deny myself those. Oh and I forgot, candies and chocolates! I heart candies and chocolates.
I would divide everything into necessary and luxury. If it's not necessary, it's luxury and if it's luxury, do I really need it? It's absolutely okay to splurge on luxury once in a while but not always. I don't buy things I cannot afford and I don't live by my credit cards. I only have one credit card and it's subbed by my dad and it's only for emergency. Never wanted it but since I was traveling to Singapore frequently then, dad insisted that he get me one for emergency. Earned myself a good scolding when I naively asked my dad to set the limit at RM500. Obviously banks don't set it that low. Banks wants you to speeeeend!
When it comes to money, my motto is, "Money is power, cash is king" [ insert evil laughter here]
Money depreciates over time, we all know that, so why not buy the Louis Vuitton bag that we wanted so much now instead? Well, I aim bigger. I want a house. Not a LV bag. I want the necessary and not just luxury. Not achievable now but who knows, in a year or two I might be able to fully pay for a low-medium cost flat and even if I don't achieve it, I will have a substantial amount of money.
And I do overspend especially of late. Not working for seven months really took a toll on me especially when I was out eating almost everyday and shopping, shopping, shopping! It's a good things I've previously has a backup piggy bank A,B,C and D. I totally recommend this to everyone but I do suggest having will power first or this will be a BIG waste of time.
Piggy bank A IS my piggy bank found scattered in my rooms. Piggy B, is my emergency fund found in some books that I've previously hidden and probably forgotten. Piggy C is the money that I've asked my sister to keep and had really forgotten I had till a few days ago. Piggy D is my 'dream house' money. A fund reserved for buying my own place one day. Cannot be touched unless in a life-death situation. Sure, roll you eyes and says it's all childish dreams but it's better to have a dream than none.
But putting your money in the bank especially with such lousy interest is somewhat of a waste of time for me. My nails grows faster than my interest in the bank. Best thing to do, invest! Invest in something medium risk, high risk earns you fast cash but you'll bear to lose some money if the market drops. So do some homework and invest in funds, bonds whatever non-illegal and safe with guaranteed returns. Remember to do your homework or risk getting all your money scammed in some dodgy get-rich-quick scheme.
Fallen alseep yet?
The only reason why I even bothered writing something this boring is that I do know of lots of people who spend alot on unnecessary stuffs. Like I said, it's okay to once in a while but not till your bank account literally left with just two digits. You might think, it's okay to do that since I'm currently living with parents/boyfriend/whatever and have no commitment but if you want to plan, plan for the future as well. I don't want to be 'happy' now and be up to my neck in bills later on. Have a bit of will power and set aside a small sum of money for rainy days, you'll be surprised how handy they come in even after the value has long depreciate.
By the way, a quick reminder, cosmetics and branded bags, shoes and clothes are labeled as luxury. Branded bags except Hermes are not investments... quit telling yourself they are!
Hate me yet?
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