terence_Say
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It has been 4 years since the 2008 global financial crisis, but the economy is still gloomy. Working class people, like you and me, are still facing potential risks such as pay cut or retrenchment.
To survive, we must be extra careful on our money: from being “offensive” (spend more) to “defensive” (save more). Here are five rules for saving recommended by a Japanese economist:
1. Find your own way
Some families have higher household income, but not much savings because they spend more. On the other hand, some families have more savings even without higher income. Saving is an art: the skill to control expenses while increasing income through other sources. Whether you prefer “save a monthly fixed amount” or “save as much as I have” methods, you need to have a good understanding of your financial status and choose the most suitable one.
2. Control your desire
During economic downturn, the only winner is the one who has cash on hand. Do not attempt to make any high-risk investment just because you feel it is the “right time”. Chances are: you will be more likely to lose money.
3. Do not, ever, touch your fixed deposit
No matter how difficult the situation is, do not ever spend your hard-earned money in fixed deposit. You can either save in fixed deposit for a longer period, or buy a long-term bond. These help to prevent excessive spending.
4. Forget the “My Home” dream
Our society has gradually become an aging population, so there will be more empty houses in the future and the price will drop eventually. It is not advisable to buy a house with the current skyrocketing price. Do not carry more debt just because you want to “own a home”. Save your extra money for a rainy day.
5. Finish your food, and utilize your household appliances
Here is one good habit to train your money sense: do not waste food or buy unnecessary household appliances. As time goes by, it helps you to save up a big sum of money.
Translated by Mr Wai © LeInvest.com
To survive, we must be extra careful on our money: from being “offensive” (spend more) to “defensive” (save more). Here are five rules for saving recommended by a Japanese economist:
1. Find your own way
Some families have higher household income, but not much savings because they spend more. On the other hand, some families have more savings even without higher income. Saving is an art: the skill to control expenses while increasing income through other sources. Whether you prefer “save a monthly fixed amount” or “save as much as I have” methods, you need to have a good understanding of your financial status and choose the most suitable one.
2. Control your desire
During economic downturn, the only winner is the one who has cash on hand. Do not attempt to make any high-risk investment just because you feel it is the “right time”. Chances are: you will be more likely to lose money.
3. Do not, ever, touch your fixed deposit
No matter how difficult the situation is, do not ever spend your hard-earned money in fixed deposit. You can either save in fixed deposit for a longer period, or buy a long-term bond. These help to prevent excessive spending.
4. Forget the “My Home” dream
Our society has gradually become an aging population, so there will be more empty houses in the future and the price will drop eventually. It is not advisable to buy a house with the current skyrocketing price. Do not carry more debt just because you want to “own a home”. Save your extra money for a rainy day.
5. Finish your food, and utilize your household appliances
Here is one good habit to train your money sense: do not waste food or buy unnecessary household appliances. As time goes by, it helps you to save up a big sum of money.
Translated by Mr Wai © LeInvest.com
