Ever find yourself overspending every month? To be honest, I always find myself overspending (maybe it’s because I’m a Piscean).

I’ve been working for more than 2 years now and I basically have limited savings. I tend to buy a lot of stuff (gadgets, clothes, books, games) without even looking at the price. Ah….the wonder of credit cards.

However, without money, there are a lot of things which you can’t possibly do. You can’t start your own business. You can’t help those in needs. You can’t even save yourself if there’s an emergency. That is why, it is always important to have a bit of money in your bank (be it Fixed Deposit, savings account, funds, etc).

For myself, I’ve started to save a small portion of my salary since 5 months ago. That was when I came across the book “The richest man in Babylon” by George S. Clason. The book has a very simple concept of managing your finance. Let’s summarize it this way….

  • Every month, save 10% of your salary (something to begin with. You can save more if you’re comfortable).
  • This is a MUST. Save the 10% no matter what. Make this a habit and don’t give excuses to yourself if you can’t save. 10% is not really a big amount. Cut down on your food and your “Nice to have” items to accommodate this 10%.
  • You’ll eventually see your savings grow….but since savings account does not provide you high interest rate, feel free to get the money out and put into things like Fixed Deposit, or trust funds. Let the money grow…. but do proper research before you commit to something.

That’s it. Simple right? I do highly recommend the book to all of you out there. 🙂 Hope it helps.