08/31/09

Personal Finance and such

So, if you think you’re alittle too old to start planning your personal finance or too young to do so, you’re WRONG.  Its not age restricted, as long as you think that you want to grow your money instead of letting it out.

A recent talk that I had went to with @mintyboi in School regarding your finance and controlling it makes us realise that it might be something of common sense but we seem to always take those for granted..  Thus Im here to share alittle bit of what the School’s Investment club has taught us that day:

Your money should be divided properly into 3 baskets; SSI (Spending, Saving and Investment).  These 3 names has got something to do with our finance!

Spending, is a basket that leaks.  Put a limit there or else your finance will leak out non-stop.
Saving, is a basket that saves you when you need help (like a piggybank), only use when neccessary.
Investment, is a basket that helps you to grow your money so that your money can be saved from inflation and things like that..

The investment club, however, did not really provide a good stand on our side as a student.  They mentioned more about shares and taking risks than protecting assets.

I like their 3 basket theory, but at the same time, I think there should be a basket for Insurance so that it can help us out when we need the money (e.g. Hospitalisation, Illness, Accidents).  These may not be neccessary for students but I took up this insurance thingy because as our age gets older, we need to get protected from all these!  I feel that an insurance can be an investment if “touchwood” you did kena something bad.

I am trying to plan my own finance now and I wanted to do that ever since I was 16 BUT the thing is the temptations of indulgence are hard to resist!  Indulgence such as eating good food or going for buffets, enjoying tea breaks, playing and singing with friends.

No wonder my finance are all in the leaking basket!