Have you ever clearly written down how much money you are obligated to spend each month and ask yourself the question: How much is enough to save? Especially the money that we are earning is the effort of hard work, non-stop and is the result of many days of overtime, full-time job. Obviously, making money is difficult, how to properly spend money to still have excess money is a much more difficult problem.
In 2004, the first months of my salary were exactly 800 thousand VND, I had no money to pay. In the following months, I increased my shift so my salary was 1 million, personal spending plus subtracting divided I started to have a surplus of 400 thousand VND per month. Continuing that momentum, I again sought to change jobs, my income increased to 1 and a half million, the balance so also increased a little is 500 thousand. Just like that 3 million, surplus 1 million. Roughly, since then, I've never used more than my income. What to say about debt. I have less to eat, more to eat. Now the economy is much more abundant, so I no longer have to do detailed calculations. But that day in my limited condition, I calculated it very carefully.
My calculations are to split the monthly expenses as follows:
1. Rent
2. Living expenses in the house
3. Eat and drink
4. Shopping, giving away money like weddings, funerals, and gifts.
5. School money for your children or yourself
6. Money saved
Most people will usually spend the above items up front and how much is to save. Because everything you see is missing, everything is what is needed. After all, at the end of the month, there is often no abundance, even having negative money to borrow colleagues, friends or family. Life like that for a long time was really tough.
So what is my savings principle?
1. When I have a stable job, at the end of the month I receive my salary and immediately transfer the amount I want to save into a savings account. Then the remaining money will be spent to continue spending the month. Obviously, if you leave it alone from the beginning, it will be difficult to sound.
2. I will spend at least 30% of my salary to save. Income increases, I will also save 40-50% of the money I earn. Of course this is my principle, the amount of savings must be based on different income and living conditions of each individual. But I recommend that you set a goal for yourself to save yourself enough money to live for 9 months to 1 year. It is a budget for unfortunate events or an unpredictable emergency.
3. Now consider spending money. I will pay for things that must be spent up front, such as rent, meals, utilities and mandatory travel and education expenses. After that, it can save money for shopping or going out. Therefore, to be honest, I know how to drink Highland coffee and travel in recent years. That's partly because of the long-standing saving habit 😆
4. In addition, I think when I have started to have enough money to give and invest back for myself. For example, do not dare to participate because of saving money to worship the death anniversary. Also, do not be too sick, but sick, do not supervise. My many years of experience are: Investment in health is an investment in diamonds. No one can buy back lost health. So we need to extract a source of money we earn to help us get better health, give it away to extend our life and that is the safest and most intelligent investment. The line between frugality and billiards is very thin.
5. Also should not keep a lot of cash in your pocket. As I now only put in my wallet a few million to ride. If you want to buy anything, you just use the card to easily control the amount you spend.
My father often said that if he eats well, he is full, he is warm when he is smart. In short, if you want to have savings, savings to invest or the provision for old age, you most need, your own financial plan, determination and discipline. If you know how to use money wisely and plan, just a short time, everyone will have a life of financial freedom only.
great