In 2014, one of my goals is better mastery of my finances. Youd be truly shocked to find out that people who earn more dont necessarily have a better system of managing their finances/savings better than the average Joe. I once met a lady whose combined household income is $50,000 monthly but her husband and her burned through all that money without any savings and any clue where all that money went. Personally, Ive always been a prudent saver and cautious spender. I hate to spend. This belief system is a lingering effect from the days when I had very little money monthly, back when I was still living paycheck to paycheck. I struggle with it sometimes because this tight-fisted nature is not always a good thing. It stems from an impoverished mindset. To counter it, I did 3 things: 1) I put in place a fixed monthly amount exclusively for sedekah/donations. 2) I put part of my savings where I cannot touch the money easily. This is to prevent frivolous overspending. (This includes converting some savings into gold and silver bullion.) 3) I keep a strict eye on personal vs. business expenses and dont let one or the other cross the line. It also helps since I converted my business to a Pte Ltd. I found that when I was operating as a sole proprietor I did not discipline myself that way. Since the conversion, I have kept these 2 accounts at arms length, no more undue fraternizing. There are many business owners who dont separate their business money from their personal money. They use the business money like its their personal ATM. I think as you improve your income, you also have to improve on your financial knowledge and systems. I found a lot to learn from AbangAbus Highway to Wealth. It teaches you the basics in a simple and fun way, and also the systematic way of spending and saving helps you get your budgeting organised well so that you never have to feel like youre up to your neck deep in bills and debts, etc. Because the basic fact of it is this: if you cant tame that wild horse of your finances, youre always running the risk of getting tossed off or getting trampled under its feet. Im still thinking of organizing one workshop with my friend who is an accountant. The workshop would touch on how you manage finances between your business and your personal expenses and incomes. Would you be interested to attend?
Posted on: Sun, 19 Jan 2014 02:29:32 +0000
Trending Topics
Recently Viewed Topics
© 2015