The salary is out. It must be collected before use. How?
Why "store before using?"
Because "store before use" is a financial discipline that allows us not to accidentally spend all our money before saving. Many people intend to save, but when they spend it, they do not have enough to save. This is to change the priority "of saving first and then use the rest.
There's a way to start "pre-use collection" today.
1. Set savings goals clearly, such as savings for emergency reserves, travel, downhomes, retirement. Having goals makes us more visual and motivated to save more money.
2. Set a reasonable proportion of savings, starting simply at 10-20% of income, such as a salary of 30,000 baht, collecting 3,000-6,000 baht per month * Or if you can, you can use the 50/30/20 formula to manage both savings and spending.
3. Use automated help is to open a separate account for savings (an account that does not bind ATM / does not transfer easily), set up an automatic transfer immediately on the day of salary entry, such as transfer into savings or money market mutual funds.
4. Savings in a form that matches itself, such as cash savings, savings through accumulated life insurance, savings in a reserve fund (if available), or savings in a DCA fund (regularly invested every month) * Depends on your own model.
5. Cut off on extravagant expenses, may start to check spending habits, such as online shopping, eating out too often. If saving money is not the target, try to reduce some unnecessary expenses.
The advantages of "store before use"
- Emergency reserves are available.
- Sustainable good financial habits.
- Reduce the risk of being in debt because of overspending.
- There is a chance to create wealth from long-term investments.
For anyone whose salary has been released, try to apply it together and I will share with you the knowledge, techniques and good stories.
