I am someone who loves to read and one of my favorite books is called "The Richest Man in Babylon". It is a personal finance book that was being made into the story and the lessons learned there are invaluable.
I totally agree with what is mentioned in the first lesson. It mentioned that we should pay 10% to ourselves first for all the incomes that we are getting. The rest would be used for expenses.
While it did mention 10% of saving, for many of us, it is possible for us to save more than that. Think about it, even before we get our hands to our salary, the payroll dept will deduct 11% of our salary and transfer it to EPF/KWSP (provided your company does give you this EPF/KWSP). Instead of being upset, we should be happy with this because, apart from the deduction of our salary, our employer actually have to contribute an additional 12% of our salary to EPF/KWSP. That means that we are already saving 23% of our salary while contributing 11%. That 12% is actually free money.
But we should not just stop there. The more that we save, the more we would have to invest. Thus, we will be closer and closer to our financial freedom.
No comments:
Post a Comment