My first valuable lesson on $money$

When i was a little boy, my parents taught me one of my most valuable life lessons.

The lesson of saving, a penny save is a penny earned.

It's not being taught in the classroom, it's being taught in my living room.

Well. some of you might says,"no, with inflation rate like that, it should be a penny invested is a penny well spent."

Well my parents belong to the more traditional generations.

I will received a pocket allowance of 80cents a day in primary school, yr1-3.

and everyday when i came home from school, i will put 10-20cents inside a metal container in my wardrobe.

And into my teenage years, my dad taught me another lesson.

That those money in my savings doesn't have an expiry date.

I can take my time to spend it.

And when i'm joined the financial industry, I've learnt yet another valuable life lesson.

There's power in budgeting.

" A budget is telling your money where to go instead of wondering where it went." C.E. Hoover

Personal budgeting is just another word for cash flow management.

If you really do your cashflow management diligently and properly, you will realised that it helps you to eliminate or decrease unnecessary expenses.

AND at the same time, you will unknowingly put your money into better use.

Doing a proper cashflow chart will:

1. Help you to understand your spending pattern.

2. and with the same chart, you will be able to allocate your funds more wisely.

with these 2 points in mind, you will have a better idea how to overcome excessive spendings!

I've done up my own cashflow chart and would like to share it with you guys.

Budgeting is estimating your income and expenses & setting realistic goals.

1. Priortising Your Goals

2. A penny save is a penny earned, pay yourself a salary 1st before your expenses.

3. Using your bank account as a platform, Savings & Current.

4. Make sure you've provision for the worst, since it's the worst, that's when credit cards can help as a temporary solution. But a better solution would be don't spread your finances too thinly.

5. Review your cashflow monthly.

6. Comparing targeted spendings with actual targets and improve on them.

With these points, I do hope i've empowered you and set you on your way to financial success.