five money management levels by djitz
TRANSCRIPT
1. Do you have financial
goal(s) ?
• Financial goal motivates and
guides you.
• Gives you answer to the
question, "Does spending
money on this gets me closer
to my goal?"
• The goal should be specific,
have an amount, and a
deadline.
• My financial goals:
o $100,000 at 30 yrs old
o $1,000,000 at 40 yrs old
o $10,000,000 at 50 yrs old
2. Do you know how much
you spend every month?
• What is not measured
is not managed.
• Answers the popular question,
"Where did all my money go?"
• My answer:
Yes, I track my expenses on a
spreadsheet.
3. Do you spend more
than what you earn?
• Live according to what you have,
not what you want.
• Never take consumer debt, those
stuff lost value and you pay more
due to interest.
• Remember your goal before you
spend, "Does spending money on
this gets me closer to my goal?"
• My answer:
No, I spend only around 40% of what
I earn every month.
4. Do you have emergency
savings fund (6x monthly
expenses)?
• Provides buffer when large amount
of money is needed urgently.
• Save you from bad and limited
financial options.
• We can't predict the future, but we
can be ready when it happens.
• My answer:
Yes, I have more than 12x monthly
expense emergency savings fund.
5. Do you invest your money
with an average return
greater than inflation rate?
• Today's $100 worth only $55
20 years from now.
• You will need more amount of
money to sustain your current
lifestyle in the future.
• My answer:
Not completely, I'm still working on this
one.
How about you?
At what level are you now?
