Those who deposit less than one million pesos must see !
Is it easy to deposit the first pot of gold ?
Nowaday the uneven distribution of wealth is getting worse, it is difficult for most people, especially for newcomers in society. Do you want to know how to save the first pot of gold ?
When many people hear the term financial management, they find it esoteric and can't figure it out. Everything is difficult to begin with, so I won't talk about it here, but talk about some specific practices and concepts.
This article takes the Philippines as an example. Many financial management concepts are the same. If you are from another country, please convert it into that country's parameters and amount yourself.
First of all, let's set the goal of the first pot of gold. You can consider feasible conditions and set a feasible goal. If you don't want to worry about setting the first pot of gold, then set one million pesos as the first pot of gold. For those people who have savings exceeded one million pesos, you can set the amount of the second pot of gold, and then you must do everything possible to achieve the goal.
The specific practice is divided into three parts: increase income sources, control expenses, and financial management.
INCREASE INCOME SOURCES:
The most important thing is to let yourself have a stable job, which is a stable source of income in the industry. In addition to relying on your own professional improvement, one must also makes some efforts in the management of contacts. because It needs to be discovered your value by someone special. In a company, your own value is usually underestimated. When you establish a good reputation and good network, the opportunities of increase income will come. The fastest way to promote and make money is through being promoted or being head hunted, or even your boss may increase your salary in order to prevent you from jumping out of the nest. So that your actual value will be reasonably evaluated, and of course your income will jump substantially.
In addition to the main business, if you want to increase your income, you must open up different sources of income, That is, sideline. Whether to increase a second source of income, it also depends on your own situation. If you have already paid in this industry Excessive brain burn and physical strength, and the income is good, then there is no need to add on the side line. If you still have time and physical energy outside of the main business, finding a side line to do it is very helpful for increasing your income.
Principles of operating sideline:
1. Put your own interests first,
2. Working hours can be flexible,
3. To be able to put down the bottom, make money first,
Because the sideline business requires energy and you may get somewhat tired. If you are not interested, it will be difficult to stick to it for a long time.
Online auctions, part-time jobs, delivery workers, part-time salesmen, retailers, direct sellers, home picking projects, etc.
Please choose according to your own interests and abilities. In general, if you actively take the initiative to develop income sources, you can definitely increase your monthly income. If your monthly income jumps from 35,000 pesos to 50,000 pesos, you will save an extra 15,000 pesos every month. Within three years, you can deposit more than 500,000 pesos.
CONTROL EXPENSES (Throttling):
As for the principle of throttling:
1. Maintain basic living needs. Eliminate extravagant and wasteful behaviors.
Food and Drink:
For example, for those who have the habit of drinking coffee,
You may purchase a cup of 150 pesos coffee in a Starbucks coffee shop, or
purchase a cup of 50 pesos coffee in convenience store, or
make your own coffee, a cup of 15 pesos
coffee at home. Obviously, it is clear how to choose.
Eat health first, try to avoid other vanity-enhancing consumption.
For example the place of residence,
Rental costs usually account for more than 30% of income.
If you can live with your parents, you can save renting costs, and even food costs can be saved.
For those who need to rent a house, many details of renting should also pay attention to:
For example, whether the air conditioner is old type or new variable frequency type.
The amount of management fee, does it include internet fees, does it include water and electricity, etc.,
If you want to live in a 2 bed room, a studio type room, or just rent a room,
The premise is that on the way to the first pot of gold, renting a house is based on the principle of housing, not on the principle of enjoyment.
2. Support Parents Fee (Filial piety)
Many parents will ask for money to go home for their children who start to work. For those who are just starting their careers, the pressure of support parents fee is not small.
There is no right or wrong in this kind of thing, only consideration of one's ability.
Here is a little suggestion that can help save money on support parents fee:
* Acting pitiful in front of parents
Parents always love their children. For parents who can live a decent life, and may even subsidize the children’s home purchase. Although it is not possible to choose which family they are born in, but by pretending to be pitiful,
With less support parents expenses, parents can get a sense of psychological balance.
3. Communication fees
The same goes for:
* Play poor in front of friends:
Reducing the chance of being invited by fair-weather friends can also reduce the chance of being borrowed by friends, and even the choice of dinner parties should be pragmatically considered, reducing unnecessary expenditures, which is good for everyone.
Through increasing income and reducing expenses, do you find that you can save a lot of money every month? The extra money is the key to making your first pot of gold early.
The last step is financial management,
Yes, rich people usually use money to increase wealth,
But before you deposit the first pot of gold and the second pot of gold, don't think about rolling money with money.
Because the other side of investment is risk.
What to do at what stage.
The most important thing at this stage is to accumulate wealth steadily.
The safest way is to use the bank's time deposit as a tool.
Save a fixed amount every month,
The longer the period, the better,
For those who have no idea about this, we suggest that you can choose a three-year time deposit.
The benefits of this are:
There is almost no interest on saving deposits,
A time deposit has interest income.
As long as you can steadily increase your income, you can’t let go this time deposit tool.
This is a process of gathering sand into a tower.
If there is a need for funds,
The time deposit can also be terminated at any time, and the interest on the termination of the contract is a certain percentage of interests based on actual days.
You still have higher interest income, and the flexibility of funds use.
Control the cash flow on hand through time deposit,
The less cash you have, the less money you will spend.
You will not lend money to others randomly.
In addition, about the part of the year-end bonus of your salary,
At least half of it must be deposited in time deposit,
It's best to save them all.
Some people will question, why not deposit shares, buy funds, buy futures and other investment targets?
Some of these targets have relatively high investment risks,
The wrong target selection or the wrong timing of entering and exiting, may erode the principal, and some may even make you lose your money and return everything to zero. These are not suitable commodities at this stage.
For financial management, we must grasp a major premise:
Don’t touch products you don’t understand, don’t touch products you don’t know,
It's like the story of the tortoise and the hare. Everyone knows this story. It is the tortoise that finally reached the end.
By the way, maybe at the beginning of the planning stage only 15,000 pesos can be saved every month. It takes about 6 years to save the first pot of gold. Some people may feel very discouraged.
But here is a fact to tell you,
If you follow the suggestions here actively,
Halfway through, you will find job-hopping, or an increase in income due to appreciation,
Throttling will also save more money than originally planned.
As long as they practice, most people can usually shorten the time by 1/3 to ½ to deposit the first pot of gold.
That is, the original plan took about 6 years. But because you do increase income sources, reduce expenses, and manage money, the goal of the first pot of gold can usually be reached as early as 3-4 years.
The key is execution,
Actions speak louder than words.
If you don't implement it today, you will still have nothing in 10 years.
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