When a person write their expenses and their income for personal financial review, most of them will notice that their expenses is more than the income or the expenses is too high than they expected. The person will not know where the money gone and sometimes 10 sen a day can make you lose RM 365 a year.
So how to trace where your money gone and how to cut your expenses?
One good exercise is by write all your expenses from thousand ringgit to 10 cents.
Why bother to write even the smallest amount of money?
Because when the amount of 'sen' (eg. sweet you buy from a convenient store) added up on one week can become 7 ringgit and if the seven ringgit one week for the whole year is about RM 365.
What is the effect on you if you write all your expenses?
You will become cost conscious and you can save thousand of ringgit a year.
This method require a self decipline to works and eventually you can make a saving per month and have some emergency fund, retiree saving, investment fund and become happy, healthy and wealthy.
e premte, 13 korrik 2007
Write what you spend
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2 Comments:
Hi! Thise is another important blog for
financial-planing
This can be really an effective way to cut down expenses. Most of the times we ignore the small expenses which at the end of the year become big enough. I'll surely do this and hope to save some more money.Kelli
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