Is it because of lack of basic or fundamental understanding of what is Personal Finance?
The basic should be presented in this formula
Income - Saving = Expense
The habit of saving determines largely the financial success of a person. You may earn RM15,000 a month but if your saving is RM 0 and your expenses is RM18,000 - you will end up a bankrupt. (statistically more younger people today end up bankrupt due to "overspending")
Before we look into more details of personal finance such as how to save money, how to increase income etc - the basic each and everyone should be cultivate a Habit of Saving.
Without saving, at a regular pattern, you and I can't never achieve a stage of financial freedom because:-
- You can not benefit from compounding return;
- You can not benefit from any good opportunity (which requires money to participate)
- You can not stop from working to get income for next month's bills
Start now! Start a Habit of Saving.
Habit dies hard - so form one today for it to last for the rest of your life.