Money Management

For some people discussing about money makes them feel uncomfortable. But these days I think people are more concerned about money management and many start to be open discussing it.

Financial problem may cause other problems in life, like relationship problem and problems in family. All the resources we have should be managed well. Including money.

Almost everyone have money, either from our income or from any family member who support us financially. We have some money to be managed.

Money in, money spent, money saved and invested.

In my opinion money management is very much on how we spend the money. It says ‘use everything you have in a worthwhile way.’ It means don’t spend it unnecessarily. Do not waste it. Be mindful in spending.

The question is then, how to become a mindful spender? What should we do with our money in our day-to-day ? What should we do before spending, when spending and after spending? What inspired actions should we take?

Before spending – make budgets. At least there are 4 categories based on financial purpose. Essential (for living), Optional (for shopping), Leisure (for playing) and for Saving.

We also need to be aware of the daily, weekly, monthly and also yearly expenses when we are budgeting.

When spending – spend according to the budget made. Make a proper record of every spending.

After spending – analyze your spending! Only if you record your spending, you can make an analysis. If you make a proper record, at the end you will know whether you are over budget or under budget. It gives you a good feeling about yourself, because you are being clear with yourself.

Only when it is recorded then an analysis can be made.

Each one of us is playing a role as a finance manager. We are responsible for every single spending we make. We are responsible for each penny we spend.

If you can do it, you will have a sense of being a responsible individual. It gives you sense of trust in yourself.

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