Money is an indispensable tool in our life. We need money to sustain our living and enjoy our life. How we can get money? We earn money by working and do something that is valuable to society. We can achieve our financial goal by climbing the corporate ladder, working part time and start our own business. We can get more income by increasing our value at our career. However, we plan to fail if we don't plan for our spending. Why I say so ? This is because the world is changing very fast nowadays. As we age, our expenses increase due to inflation and we need to pay for our car and house loans. If we didn't plan our budget, we may make our life more financially burdened and damage our mental health. Therefore, financial planning is important.
Now I am going to share how I manage my finance. I follow the four jars savings concept. I allocate funds for a few categories such as investment, learning, donation, and entertainment. The money is allocated according to this sequence.
If we received our income, the first thing is to allocate our funds to an investment category. There are many types of investments in the markets such as stock market, funds, property, and so on. For those who are willing to focus on their interests without spending time so much time on investment, you can consider mutual funds. Mutual fund investment is convenient. We just need to open a mutual fund account and then we put our money together with other investors. Fund manager helps us to invest and we can get a return up to 20%. The benefit is we no need to time the market and reduce our worries.I am a mutual fund investor and I get the benefits from the investment. Thanks to my consultant that give me advice so I can build my wealth easily. If you have any questions regarding the mutual fund, you can click the link below so we can have a chat.
Moreover, we can invest 10% of our income in learning. Lifelong learning is important in this AI era. We must always enhance our skills in our careers so we can stay competitive and valuable. There are many online course platforms on the internet such as Udemy, Coursera, LinkedIn Learning, and so on. Don't simply start any course. Try to understand your career goal and what you want. After you have decided on your career path, go do some research on what you should know and just purchase the courses according to your needs.
Next, we have the ability to donate to underprivileged families if we plan our finance well. A good life is a life that helps others. There are less fortunate families in our world. They need our help. I have volunteered to visit families who live in poverty. They are suffering and live simply. Some of the family members have kidney failure patients. They need to undergo dialysis and need to pay for the medical costs. It volunteers to become their good listener and show empathy with them. Therefore, I donate 5% of my salary to a fund to give them hope in their life. I can do so because I have planned my budget. I am very happy because I have the ability to help others. When I see the smiles on their faces, I feel my life is good because I live with my life values.
Lastly, don't forget to enjoy life when doing financial planning too! We are not robots. We need to allocate funds to relax ourselves. We can allocate 10% of the money for entertainment. You can spend this money to go out with friends, watch movies or short travel. It helps us understand the world better! I spend this money to socialize, meet new friends and widen my horizon. Sometimes I treat my family members to a great meal too! It mades me feel happy because I have spread my love to my friend and family.
In conclusion, financial management is important in our life ! We must practice how to manage our finance so we can create a better future for our family and ourselves !
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