My father is a good role model for me about personal financing. He is not a millionaire. Not a formal educated person without Phd, Master, Degree or even SPM. His income is not very high but he manage to raise me and my 11 siblings. We get proper education because of him. He is never in bad debt. He managed to perform Hajj at age 30 with my mother, a few years later supporting my late grandmother and late grandfather to perform the Hajj too. Those are very strong reasons to make him my role model.
But what is his secret?
Last Raya Puasa he share a few tips on how to save money. There are many tips shared by him. However in this post I'm going to put 5 tips that I think very powerful!
5 Powerful Saving Money Tips From My Father
- Focus on what you need not what you want - He said to me that everytime you want to buy something, always ask yourself. Do I need to buy this one? Do I really need? If not then postpone it. Find something that your really need to buy.
- Pay yourself first and forget about it - During his younger day he always pay himself first. He is a shopkeeper, so everyday when he calculate the income he always put some portion aside into separate account and 'forget' about it. He said that if let say my income is RM2000 a month and I pay yourself RM200 , my income is not RM2000 but RM1800. Whatever budget must be based on this RM1800. This is what he means by pay and forget.
- If you have one child, allocate for two, if you have two, allocate for three - This is the secret on how he managed to raise me and my siblings. By doing this, the money is already prepared for the future. You will be jealous knowing that, I already having some money allocated for me even 2 years before I was born! I want to do the same for my second child!
- You have some bad habit or hobby? Make budget for it too - He had a bad habit of spending time at cofee shop playing checker with his friends. He included that into the budget too! He put RM5 daily for his habit.
- Pay yourself for something bad that you DID NOT do - Pay yourself as an encouragement for not doing bad thing. My father save aside RM0.20-RM0.50 everyday for not smoking.
My father always advise me and my eldest brother ( note: usually only both of us like to ask about this kind of topic) to be wise in spending money. He was aware that nowadays, the situation are very challenging and its not as easy as before.
So what do you think?
- Which one is your favorite tips?
- What your father/mother teach you about money?
I love this entry. And yes, your father made it through his experiences with determination to survive. Have you ever read Robert Kiyosaki's Rich Dad, Poor Dad? He mentioned the second point - pay yourself first. Personally, I love the 1st point because that's what I'd do when I go for shopping. Insha Allah I would love to try #3-#5. My parents encouraged me to save some money since I was in primary school. However, just recently I learned more from my husband - never save, but invest. :)
ReplyDeleteThank you so much! Yes I do read the Rich Dad Poor Dad, sadly a friend borrowed the book and never return it.
ReplyDeleteThat is a great tips from your husband!
Hi! I am so glad to see some tips on how to save money for our future. It does really helpful for us especially young people on how to save and spend money wisely. Your dad has done a really good job. He is not much educated but yet he is able to raise you all and perform Hajj at a very young age. We all should give him a big hand, I really admire him. I will remember what he said and always apply those tips into my daily life.
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