1. Pay yourself first

Set a target, make a budget, take out approximately 15%-25% from your income to pay yourself. Not buying any goods or new toys, but invest for your future!

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2. Mark Down your expenses

The biggest mistake that people make in personal financial planning is don’t know where their money go. IF you don’t know your expenses, then how you going to plan for your budget, expenses and future?

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3. Minimize your credit cards to 1

The more card you hold, the harder you control your “buying” desire.

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4. Choose a smaller house, but bigger in future

Good news, more and more people can get a mortgage. Bad news, they choose the biggest house that they can afford. How about think the other way? Take a smaller house first, use the extra money to invest, with the returns, get a bigger house. The good news is the money you invest keep “collecting” back money to you!

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5. Avoid Impulsive Shopping

Does impulsive shopping give you satisfaction? Then I prefer to recommend better replace it with other recreation activities such as reading, chatting, exercise or other. This is because there are a lot of side effect of impulsive shopping that possible will generate a series of nightmare to you.

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6. Drop down the living demand

I give you an example. Do you have to drive your car to the store just at the end of the street to get some drinks? The oil price is hitting the highest point that ever has. So why don’t get on a bike instead of driving a car when the condition allowed.

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7. Take good care of your goods

Take good care of your goods, make their life longer. I think you can save some money from here.

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8. Save for emergency fund

Life is unpredictable. Better prepare for the disaster by setting up an emergency fund.

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9. Using the power of compound interest

Reinvest your interest every time to benefit from the power of compound interest.

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