I download this cool app called Easy Money last month. Before this, I don’t really bother on my spending, i.e I never keep track of what I buy, to whom I pay and things like that. I bought what I like without thinking much. And I realized at the end of the month, I just have enough. Not much savings and stuffs. But I as grow up (refused to use the word older –denial peeps, denial ;p), I see the needs for proper wealth management. Nanti nak kahwin, nak beli rumah, nak sambung belajar, etc etc (the list goes on and on) all requires lotsa money. Hence the use of the app.
Well besides the obvious (untuk jaminan masa depan), the reason why I started to plan my spending is all thanks to the NDPC symposium that I went to early April. One the workshop done entitled ‘You are healthy but are you wealthy?’. The speaker is Miss Rachel Melvin, the CPA wealth advisor. She introduced us to the 6 Jars of Money Mx, in which our net salary should be divided into 6:
-50% for necessity (car, gives/money to parents, petrol, foods, bills, loan, etc). I would say it is sort of the obligatory spending, monthly.
-10% for financial freedom account (FFA), in which this is for the later life, for ur future, in case of emergency, etc. U cannot touch this money. Haippp…
-10% is for long term saving and spending (LTSS). This is for special things like u want to further study, or get married, or plan for special vacation (tour Europe ke hihihi) and stuffs.
-10% is for education, especially for ur children later on.
-10% is for play. Play here include movies, spa, vacation, books, etc. I was like 10% je??? Haihhh.
-Another 10% is for giving/donation. The more we give, the more we get, right? But this doesn’t include the money u give to ur parent, because it falls under the necessity/obligatory. Rachel said u don’t donate to ur parents right?
Well for me the 6 jars is only guideline, of course we can modify according to our needs and plan. But its very good if we could plan our wealth wisely. Untuk masa depan jugak kan.
Back to the app. The app clustered ur spending according to category, ie accommondation, automobile, entertainment, foods, investment, insurance, medicare, SHOPPING (I need to bold this ;)), works, etc. You can also add your own category if u like. The best part is it provides reports on your spending according to those catergory, so u can see the percentage of where u channel your money the most. Haaihhh berdebar nak tengok keputusan ni. Hihi. So here’s my spending last month. For each major category, there are subcategories but I malas nak drilled down kat sini. But u can do it with the app. Note that last month punya gaji banyak sikit because of the backdated salary increment ;).
1. Saving: 31%
This month I could save more, again because of the backdated salary increment. However, I didn’t divide it into FFA, LTSS and education just yet. Hihi. Come on, I just started doing this. Spare me some time ok. ;)
2. Necessity: 40%
Aiyakk.. macam mana boleh kurang dari 50%. Haha. But this month I don’t spend much on petrol because went back to jengka with long. And I don’t travel outside kuantan that much. Plus I live in my brother's house
x payah bayar sewa
3. Play: 23.8%
Ok this one I exceed the allocation. But again, spare me ok. We went to Jakarta for Awi’s convocation. So I did some shopping (when I say some I really mean some tau. Berjimat cermat je pergi sana). Majority of it is on the flight tix.
4. Gifts: 6.7%
Don’t need to mention la what I did kan.
So basically it’s cool to know where does your money go. At this age, it is very important to manage our financial wisely. And one important fact, I never realized that I spend about 10% of my salary on foods. Kan? Kuat makan kan? Haha. Happy managing peeps!