If you visit this blog regularly, you would notice that in this past week, I didn’t post regularly – at least not as regular as before.

No, I’m not being lazy – Instead, I was taking care of my mumsy. My mom is having a surgery on her leg. She stayed in hospital for 8 days, and the recovery will take 3 months or so.

I’m not going to get into details of the surgery and hospital stay themselves – I’m talking about managing your money right to secure your future.

Unlike in most countries in western world, there’s no Medicare or something similar here in my country – it’s either insurance or personal finance. Here, you have to take care of your self as the country is busy (struggling) taking care of itself, let alone it’s people – but, let’s not talk politics :)

Luckily, my parent’s finance is well taken care of – thanks to years of discipline and right money management.

Not only in my country, but also in everywhere you are, you have to be financially ready – we never know when will the recession hits you (it is hitting most of us right now), when your business fails you, or when will the other unexpected happens.

How to manage your money right

Managing your money need not to be complex and confusing – in fact, the more complex and confusing, the more you will not want to manage your money right.

Here’s what my parents and my family do – for each month of income:

1. Set aside 10 per cent for rainy days. You have to build your rainy days account to at least twelve month value of your minimum, bearable, monthly living cost. You can’t touch this account unless it’s an emergency.
2. Set aside 10 per cent for low-risk investments – precious metals, real estates, and the likes
3. Set aside 10 per cent for higher-risk investments – stocks, business, and the likes.
4. Set aside 10 per cent for charity – this is very powerful and somehow your charity will return to you in unexpected ways.
5. Set aside 10 per cent for each child you have – not many people do this, but it would be wonderful to have your child’s college tuition and other necessities are well taken care of.
6. You can do anything for the rest – entertainment, daily groceries, etc. – even better, reinvest some of the rest to your investment account.

My emphasis is actually on your rainy day account – We are living in an ever-changing world. We never know what will happen in the future. You better secure your future, no matter how.

By doing this right and consistently, I guarantee you to be successful in securing your future – whether you are a budding entrepreneur or a factory operator.

Ivan Widjaya
Securing future

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