As grand as the title is, it means what it meant. Wealth planning aka financial planning aka how to make sure you have enough by the next pay and have enough for rainy days.
These days, we take a lot of things for granted. I started working formally for 2 months, I can already feel that money DOES NOT come easy. We work hard and we got paid for it, but at the end of the day, where does the money go? For some of you out there, who come from a well-off family, who can afford luxurious lifestyle with expensive houses, cars and maids, this doesn't ring a bell. For the rest of us human beings who need to toil and save and survive, this is extremely important.
What we need to understand is, we only have so much, so we have to spend within our means. Remember this. Never, ever, ever, ever, think that, 'Oh, I will get paid next month, lets just get this-and-that'. Never. I learned from experience that unexpected expenses always crop up the next day.
Anyhow, let me give you and example of how to manage what you have. I use a nominal sum in general and this is generally useful for all singles out there. Family budgeting is a bit different as they have different expenses and combined earnings.
Your earning monthly = $5000
Your expenses monthly =
- Rent/housing loan = $500
- Car = $500
- Utilities = $100
- Internet = $100
- Phone = $100
- Petrol/toll = $100
- Car maintenance = $100
- Parents = $1000
- Food = $500
- Miscellaneous = $500
- Insurance = $500
- Saving = $1000
Earning - Expenses = 0
While saving is not an expense, it is a must. You may never know when you may need it. So save while you can. At the end of the day, 0 is left. No extras for anything. Well, miscellaneous is exactly that.
Anyhow, this is just a rough guide. Not everyone earns $5000 monthly and not everyone has the same expenses, bear that in mind. The easiest is to make a little book of financial planning for yourself, I use Excel sheet myself, and plan away. Follow it as you can and I can guarantee that you won't worry until your next pay. You will ALWAYS have enough before your next pay.
Good luck!
