#74 - Tips on financial management

12.12.2010

My sweet friend, PBH shared with us:

One need to have 6 accounts for more proper financial management, of which:

1) 55% goes to NECESSITY - insurance, food, etc.

2) 10% goes to RETIREMENT fund

3) 10% goes to VACATION - to whichever place u wanna go, local or international trips (reward urself)

4) 10% goes to PLAY - items u want, such as cosmetics, handphones, laptop, camera etc.

5) 10% goes to EDUCATION - courses or reading materials (magazines, fictions, non-fictions etc)

6) 5% goes to welfare - donation, charity etc.

Note:

a) housing loans, car loans and allowances for parents should be deducted from your salary before allocating the balance to the 6 funds above.

b) the percentages can be adjusted accordingly (flexible). The percentages given above serve only as guidance. Just bear in mind that there should be 6 accounts to allocate your salary to.