Financial management 101 - part 1

It's been quite awhile since I have posted something. So here's my new post =D

Today just wanted to drop by and share something practical and useful to all.

This just happen yesterday and I had some awareness that might be useful to others. Well topic is about money!! $$$$$

Yep MONEY.

Before hand, let me just throw a simple question to the readers out there. What is the best way to generate money?

Is it to save up all the money and not spend it ?
or
Put every single possible penny that you own to any investing related planning?
or
You just rather don't bother about these....

Just had a conversation with one of my friends recently, my friend mentioned about wanting to save up because she has been using up and over spending too much money lately. And wanting to sign up for those saving plans that exist in the global market.

Well don't get me wrong, I am certainly not against all these savings after all they are owned by prestigious banks and large financial organisations. Certainly the plans that they offer is good and will help generate profit overtime.

But that is just one of the ways to generate money, and its not even tackling the main root of the problem. So what is the main problem and the solution then?

The truth is the reason we often suffer from financial crisis is due to the lack of knowledge in managing our daily use of money. You can have tenths and twenties of saving plans or investment plans but with a bad skill in managing your own finance you will remain at the same state still.

So what is the best way to overcome such situations?
The answer is simple, find out your spending habit and pattern and CHANGE IT.

One of the killer in money spending is when we spend of petty stuff and we take no record is those stuff. It is because of the mind set of those are cheap and very affordable stuff so you just spend it without even thinking about it. How many times have you ever experience such thing before. Going in to a grocery shop where you just take the items of the shelf because it is so cheap and when you are going of cash out then only you realise the awfully high total cost of all the items that you've taken.

This is very common because we tend not to register in things that are rather minor and small in our lives. This applies to our spending nature as well.

Hence one of the way to know our spending habit is as such:
1. Get a note book
2. Record each and every spending that you did for a whole month long. (including those petty stuff)
3. After a month review it
4. Cut down those expenditure that is rather uneccesarily

These are one of the basic step to realise our spending habits. Will further elaborate of this topic on my next post.

Try this method out and don't hesitate to drop me any question on my comment section. I would be gladly answer any questions that you all have.

Today is our best day!!

Cheers~~