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Did your parents once ask you for your ang pao because they want to keep the money in a bank? 🧧 Because my parents used to do that when I was little!

Our parents seldom tell us not to buy things we can’t afford and not to waste our money on things we already have—they always have the best financial advice! But now that we’re older, it’s our turn to give today’s children sage financial advice.

So, today, I’d like to share with you three pieces of financial advice that I always follow. Or as I call it…

The 3 golden rules of money management

When it comes to financial advice, I have plenty. But the three that I’m about to share are some of the most important money management rules that I believe anyone can practice.

1) Don’t spend more than you make

This may sound like an obvious piece of advice, but sometimes, it can get really difficult to not overspend. Especially if the thing that you want to buy is something that you have been eyeing for a very long time.

But spending the money that you don’t have is very dangerous. If you overspend, where are you going to find the non-existent money to keep you out of debt? If you wish to stay in the safe zone, spend within your means.

2) Always plan for the future

What’s going to happen in another five to ten years’ time? Will you still be working where you are? Will your little ones enter universities? A lot can happen in the future. And if you are not prepared financially, you may find yourself struggling to make ends meet.

Say if you want to move to a bigger house, unless you win a ton of money (lottery), you must start saving now. When you plan for the future, you get to set your financial goals and stick to them. Always make sure that you have enough savings to keep you on your feet for years to come because we never know what’s going to happen later!

3) Grow your money

So, you have savings. What comes next? Saving is great to ensure that you have a cushion to fall back on should you face any financial difficulties. But once you have built up your savings, you must learn to grow your money.

A great way to grow your money is to invest! But remember, investments come with risks. So, don’t put all your eggs in one basket. Since there are plenty of investment opportunities for you out there, it’s recommended that you check with your Financial Consultant to see which investment plan is suitable for you. Once you are confident with your strategy, only then should you diversify your investment.

Although it may sound simple, money management is anything but. You’re constantly worrying if you’re making enough money to support your family or if you’re spending within your means. But with the right help, you can easily manage your money and your bank account.

“It’s not your salary that makes you rich, it’s your spending habits.”

— Charles A. Jaffe

So, practice these three simple money management rules and share them with your loved ones.

Speaking of checking with your Financial Consultant, I’m a Financial Consultant myself! So, if you have any questions or would like to get more money management tips, feel free to send me a text!