We are not really taught on how to manage our money in school when young, at least for me. We only listen to stories that teach us not to waste money or to spend our money wisely but exactly how to manage our money well is not shared with us.
I feel that it is important for everyone to have such knowledge before we start to work. For me when I graduated, such term as money management does not even cross my mind. I only know that I need to save money, how much is sufficient I also don't know or can't be bothered. How I spend my income then was a portion for my parents, then some for paying bills and then only towards the end of the month, whatever balance left will be my saving. And yes, most of the time, nothing was left. It got worst after getting my first few credit cards, I lost track of my spending and in some months, outgoing was higher than incoming.
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| Still happening to me sometime as I cap my monthly spending |
Picture Credit: http://www.factum.lt/
Of coz with some reading up of such knowledge on internet, one should know not to live in such way. We should set aside the saving first even before we spend; spend what is left after saving and not save what is left after spending, a common advice that you will come across. But I don't remember anyone sharing this simple logic with me before. Maybe the schools should start educating student on this matter, or it is already in place now? I think this matter does not really cross many student minds during their school days. I am luckily that I don't really worried about money then. Thinking back, I should have even manage my allowance better during my school days!
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| Teach them young! |
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I am happy to read some blogs that are written by younger one that share how they start their investing early in their life. Below are two examples that I have been following for quite sometime:
Everyone should spend some time reading up on money management, there are many useful materials on the net for us to refer to. Learn to manage it well. Money is not the most important but it is essential. Be content with what we have too although it doesn't mean we should stop aiming for higher living standard, just that we shouldn't go and enjoy the lifestyle that we want before we can even afford it. Looking at how some younger working adults that I got to know, spend their money on the stuff, I am worried for them when I get to know more about their background; clearly some are spending beyond their mean or thinking that their monthly income will never be cut off, a dangerous thought. One should never assume their job is secured even if it appears so. Even now, sometime I can be broke and waiting for my next pay check but that's because I have force myself not to touch my saving at all. Money put aside as saving or investment to me is like money gone, can't spend on other stuff.
Well, that's me. Everyone is different, so one should find a way of managing their money well that he or she is comfortable with. Don't take things for granted.
Picture Credit: http://www.triua.com/108/10-important-tips-for-money-management.html
It's good to be frugal with our spending especially from young age. Equally important as you have said it, spend only what is left after self-forced savings and investments.
ReplyDeleteBut if you need to spend on a necessity like a good mattress to overcome your bad ache or preventing it from happening then don't hold back on its spending. Need to spend and save wisely.
Yes, that's right. Spending on necessities is unavoidable. Sometimes the logic is just so simple, when you said it to others, I am sure they know it but how many times did we really apply what we know?
DeleteThere are so many articles written on the same topic but time and time again, you can still find people who just don't get the message. It just shows that one can never or shouldn't stop learning.