Monday, September 8, 2014

It Is Not How Much You MAKE but How Much You SAVE Matter

Would you agree when I said that it's not how much you make matter, but it is how much you save that matter most? You can have monthly income of RM10K but, if you spend all your income of RM10K, you have nothing left. Maybe my monthly income is only RM2K, but if I manage to save 10% of my monthly income, in one year, I will save RM2400. And if I continue to save 10% and invest my savings, in a few years time, I will see quite a substantial amount in my saving. And for your case, even if your monthly salary increased to RM20K, but somehow you still can't control your spending habit and spend all RM20K, then you will have RM0 savings. I know there are cases, whereby a person make RM10K per month, he spend it all and worse, he still borrow his future money to spend (credit cards, personal loans).

Of course, the perfect situation would be, one able to earn big income and at the same time, consistently save a portion from his income.

Nowadays, I understand that it's not easy to save a certain portion of our monthly income. But, it still can be done. With strong determination and proper self discipline, you will be able to do it. Do not be too hard on yourself, start by saving a small percentage and when you feel more comfortable, slowly increase the percentage of savings. In a few months time, you will be amazed with the amount saved.

In financial planning, it's not how much that we make matter, but how much we save matter most.

photo credit: ota_photos via photopin cc

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