16 Personal Financial Management Tips


Financial management is not something that should be taken lightly. If not managed properly, these financial issues will lead to harm.

This financial management problem happens to those who are salaried or self -employed. No matter how much income you have, if not managed properly it will feel crowded before the end of the month.

When it is not enough, we start borrowing here and there, borrowing here and there to meet our needs. Let's look at some personal financial management that we can practice.

1. Calculate Net Income Per Month

For those who are already experienced, this thing may be common, but for young people who have just started working when they get a salary of for example RM2,500; keep imagining in your head what to buy.

Take it easy, we have to know first how much net income. The salary must be deducted first from the costs that we must settle such as:

The cost of oil goes back to work

Car loans

Home loan

Return toll from work



Phone bill, internet, electricity, water

And all sorts of other costs to get on with life that we have to provide every month.

2. Control your appetite

This is a normal thing that happens, we should not spend according to lust but spend according to need. Sometimes people for the reason "I'm tired of working for a month have to give a little for themselves".

This verse is true, but we have to make sure that we are really capable.

3. Set Goals

Want to know why our money is never enough? Because we do not plan, if we do not plan confirm we book failure.

Take time to study, take a financial management course or seek advice from a parent. If it's really hard just go to YouTube and type "financial management", there are videos you can watch and learn.

OK enough we list 3 reasons people fail in managing finances, in fact many more can find additional reading on google and so on.

4. Create a Separate Savings Account

Create a special account for you to keep only in it, this account will never be tampered with unless there is an emergency. And it is better that you create this savings account without a debit card, which means ask our bank for a passbook only.

5. Save the Receipt

These tips I got through a friend. He said if we keep receipts, we will easily keep track of where our money is spent because there are dates and notes when we spend at that time.

And best of all, this friend of mine kept the receipt for the past few years, where the color of the writing is no longer visible.

6. Necessary Expenses Only

Why do we always not have enough money at the end of the month, because we often spend on things that are in the form of wants instead of needs. Even worse if our desire is something for fun such as constantly changing smartphones and wearing expensive branded goods.

7. Avoid Eating Out

Did you know that if we buy raw materials and cook ourselves, we can save a lot of up to 50%. So avoid eating out if there is no urgent need.

Self -mixed Milo water may cost less than RM1, but if you order at the store, it can reach up to RM2.50.

8. Don't Use Credit Cards

The danger when we use this credit card is that we feel like we have money, when in fact we owe the bank. So avoid using a credit card, if you want to use a card, use a debit card only.

9. Record Money In and Out

This requires a very high level of commitment. Make a daily note every time before going to bed where our money has been spent from the smallest expenses to the largest.

The purpose is so that at the end of the month we look at daily expenses and can save what is necessary in the coming months.

10. Save Where You Can

For example we can save on electricity, water and other consumption. This is so that our bills are not soaring.

Even now, there are many telecommunication companies that offer economical and low cost packages. Reduce talk time instead of using free applications to make calls such as WhatsApp, Google Meet and others.

11. Set Savings Targets

This can help in increasing the motivation for us to save. For example, we set a target after a year we want to collect RM5,000. And we use the money saved for worthwhile benefits like taking the family on a year -end vacation.

And it's best not to spend the savings, instead we add more savings for future use.

12. Pay Debt

When you have savings and extra money, you can focus on paying off debts or loans that we have. Only then can we plan where our money will be better spent.

If we do not settle the debt first, we are afraid that this debt will increase and consume us. We live with houses to be auctioned, cars to be towed, names to be blacklisted.

13. Invest To Generate Passive Income

When we have reached the end of the month and have more money, invest in a place that can generate a consistent income. Before investing, make sure we have the knowledge and clear where the money will be invested.

Don't invest in a place you don't understand, and never invest in a place that is nonsense.

14. Saving For Retirement

As the age increases towards retirement age, we no longer have the strength to work. So it’s important we save for retirement or plan for retirement.

Apart from savings in the EPF, make sure we have other retirement funds to cover.

15. Give alms

The miracle of this charity is not actually reducing wealth, but making our wealth increase. There may be no increase in terms of money, but the sustenance will be a blessing and we will feel enough even a little.

16. Discipline

In all things, if we want to succeed, we must have high discipline. It's a little difficult to be disciplined in terms of money, we can't do this.

Being disciplined here does not mean we are stingy, if there are things that need to be spent please. Because we already have the appropriate savings and investments.

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