Managing your personal finance!

Our TPM said that students must be taught on how to manage their personal finance. Also, they have to read magazines and books on personal finance. Young people at the age of 20 to 25 year old, they have been trapped and indebted to credit card companies for their inability to settle their remaining outstanding debt.Some of them were declared bankrupt or insolvent at the very young age.

Despite the fact that they are degree holders, but when it comes to personal finance, they went blur and used credit card like crazy without thinking of its side effects like getting sued from the bank for the unsettled arrears! What a shame. Actually, at this age,they should develop their carrer and establish a good reputation in their career advancement.After getting their qualification, their career is a good start to earn money and meet the ends.Handling financial problems and minimizing any incoming problems ( better not to have this problem from the outset ) will bring you forward to the road of success in your chosen career.

Why this scenario happen? It is because :

1) they do not live within their means;
2) they spend the credit limit as if they had the money'
3) they use the credit card as another source of making debt unnecessarily;
4) "enjoy life= Biar papa asal bergaya" but limited source of income or without second or additional income to pay the credit card debt;
5) lack of knowledge in managing their money;
6) do not have adequate 'back-up system' like protection or investment.
7) many responsibilities or other expenses to settle . Yet, they still use credit card as to buy whatever they want and could not give a damn if they actually could not afford to buy it in the first place.

Lack of knowledge in managing their money

Above all, this is number one reason on why we fail to manage our money. Of course, life is full of uncertainty. But, we must act as a filter to determine what is important and what is not really urgent. Basic needs like food, clothing, education and travelling expenses are examples of what we must have and pay for it.

Non important stuffs like MP3 (unless you involve in entertainment industry), expensive CDs (just listen your favourite songs at the radio!), expensive handphone or anything that you know if you do not have , you still can breath and will not affect your work ( although it will affect your mood and emotion too,just ignore it...hehe!)

So, start reading personal finance stuffs like book written by Hajah Rohani and Azizi Ali's collection on personal finance. I myself bought his latest book on Retire Rich. I want to retire rich! So, l have to control my desire on buying unnessary items. Allocate few hours a day to enrich ourselves by reading and writing. I am also in the prosess of writing personal finance among youths in a practical way, based on my observation.My expenses in buying books have two (2) purposes . Number 1 : As an investment as l love collecting books and magazines. Number 2 : Can deduct from my income tax up to RM700 a year. That's what we call it smart buying.

Live within yout means...Practise makes perfect!

Till then,best wishes to all!