Who took my money?

People always think that big paycheck can solve financial problem. For me, it’s partly true. The most important part before thinking and dreaming a big paycheck is to plan your expenditure.
Do you know that our expenses can be categorized into 3 parts?

1. Necessity
2. It’s Good to Have
3. You Don’t Die if You don’t Buy it

Firstly, let us look into Necessity expenditure. It is an expense that you MUST pay for it. If you don’t do it, you can lose yourself and your family. For example house mortgage payment, foods, diapers for your baby, water and electricity (utilities bill - but not ASTRO please!), charity & donation, your children school’s fees, insurance and others.

Next, It’s Good to Have expenditure. For most of people, a handphone’s bill. Books & Magazine. Annual Family vacation. Your first car that is used to go to office and for your family arrangement. Broadband connection for your home and others.

The the last and the most important category to be discussed, You Don’t Die if You don’t Buy it! It is expenses for your paid television channel - ASTRO, your second or third car, teh-tarik and roti canai at Mamak Bistro with you friends every day after work, new dresses and accessories just to follow the latest fashion on earth (which was actually also a new fashion in 1970s!) and all things that you buy and dream to have it for just for fun. And you will still alive healthily on earth even if you fail to have it.

However, different people have different needs. For me, handphone bills and broadband connection are necessity because I can’t make money without both of it. I’ve once “lost” around $5,000 - $10,000 just because I don’t pay my handphone bills earlier. Sigh. A very hard lesson for me though.

For now, just think about it seriously. Categorize your expenditure into 3 parts. Next post, you will learn how by doing these simple steps, you can reduce your debt headache, credit card burden and end-of-month financial cries, just by doing this.

excerpt from http://bicarajutawan.com/blog/?p=35