3.

As a students Personal Financial Management course, share your opinion

One of the ways to have a comfortable life is to reduce money invested in things that
do not need to be used very much. For example, Gen Z follows the trend too much
by going to expensive coffee shops to upload to social media. The current
generation needs to reduce spending money towards that and spend according to
their ability.

Next is to set small goals and objectives first. Many people think that the way to have
a saving lifestyle is to keep getting rich or buy luxury goods, actually the way to live a
saving lifestyle is to set small goals. For example, if we want to buy items under
rm200, we need to save at least rm5-10 a day. Therefore our goals will be easier to
achieve and not burden us.

Besides that, make your savings visible, celebrate the small savings. Appreciate
each of our savings with an achievement. If we can reach our target with the set
amount, celebrate that success but not by spending all our savings but to make us
more enthusiastic about saving.

In addition, question all your purchase. Every purchase we use must be thought of
the pros and cons. Don't spend money on things that will be 50-50 to get money. For
example, if we buy a drink that is quite expensive, we should think twice or thrice
because the price of water can cover the cost of our shopping in a week. So if a
purchase is worth it, then go for it.

We should save our money by assuming that we will have an emergency in the near
future. So we will always have savings for the future. Put a savings account or open
a bank for savings only. Divide between savings and spending so we will be more
careful in spending.

Furthermore, avoid gettintuck with bad debts. Bad debt is debt that will burden us
and force us to tie our stomachs. An example of debt that we don't need is debt to
buy a mobile phone. We should only buy mobile phones that we can afford. Men, if
you still don't need a car, then collect as much money as you can and use the
motorbike while you still can. Get married if you can afford it and don't get into debt
for marriage because if we borrow then our marriage will be unmanageable with a lot
of debt.

Saving demands sacrifice. When the pain of sacrifice spills over the joy of saving,
the motivation starts to fade. If your self imposed restrictions are too strict, the
chances of failure are high. If you deny yourself for too long, you may snap and undo
all your hard work. Saving money does not have to be a completely miserable
experience, it can be enjoyable too. Set up small goals and reward yourself on their
fulfillment. The feeling that you’re doing something good will eventually payoff in the
end.

Regardless of your income, consistently spend less than you make.The main reason
people are not able to save money is that they do not have control over their
spending. If you want to form a saving habit, you must consistently spend less than
you make. How to do this is a challenging issue that deserves its own blog post, but
the requirement that you pay attention to your spending, and enact ways to curb it
and bring it in line with your income, is critical. Research has shown that people with
a strong saving habit are frugal and find spending money to be painful. Cultivating a
saving mindset and habit requires abandoning a spending mindset.

There you have it. These are the four steps to cultivate a saving habit: Set an
emergency fund goal, save money every day, do so in a visible and tangible way,
and monitor spending to bring it below the level of your income.

Not all strategies work for everyone, of course; not everyone is a natural saver, and
not everyone loves budgets or spreadsheets.

If you know that you'll get bored or tired of meticulously tracking your expenditures,
there’s another method you might want to try, sometimes known as the "anti budget."
You simply pull your savings from the top and spend the rest. There are no budget
categories to keep track of.

All you need to know is how much you can afford to save each month. You shouldn’t
try to save so much that your checking account balance is $0 before you can pay the
bills, but once you find a suitable amount—one good rule of thumb is to save 20% of
your income—set up an automatic transfer at the beginning of the month so that your
savings are put aside first.

One common reason so many people make it to the end of the month and wonder
where all their money went is that they don’t account for any extra expenditures.
Don’t make this mistake.

Instead, take a look at your expense,s and see whether you’re spending more or
less than your projected amount. You should be keeping track of how much you
think you’ll spend during the month and how much you actually spend. The
difference should go into savings.

If your budget says you should have money left over, and the problem is that you’re
spending it before it can be saved, this method will help. Estimate your savings, and
work that into your automatic transfers.

You can also work backward. Start with your salary, and subtract all of your
expenses from it. If there is anything left, direct the remainder of it somewhere to
avoid spending it.

Savings is assessing your financial health; this would help you know the direction
you’re headed and how to get there. You need to have a clear picture of your income
and expenses, you need to know what takes the bulk of your money, and also try to
ascertain whether you’re spending more than you earn. When you have this figured
out then you can move to the next step.

Having a budget would help guide you on what you ought to spend your money on
and what you shouldn’t. With a budget, you would know your needs and wants and
have a clear picture of how to cut down on spending on your wants. Wanting to
satisfy your wants would make you unable to save. A budget would help you plan
better, save better and cut down unnecessary expenses.

Save for better education .A good education is an investment for a better future.
Each year more people end up at various schools to earn their masters or doctorate
degrees. If you have goals of reaching some college or university, you will also need
huge funds. So, start saving today for your dream.Even if you plan to take the
student loan, prepaying some part in advance will save you from accumulating hefty
interests. Hence, saving for the future education of yourself or might be your next
generation seems to be smart enough

Save your pocket for an emergency cushion. Future is full of uncertainties. You
never know which unexpected and emergency expenditure will come next knocking
at your door. That’s where the importance of saving money comes in. If you are
prepared beforehand, it will be much less stressful in terms of financial condition.
You can start today by putting aside a small amount from each pay cheque. You
should have an emergency fund of about four to six months of your expense. Also, a
good insurance plan is a must to help you survive unexpected events.
“Do not save what is left after spending; instead spend what is left after saving.”-
Warren Buffett. Having a habit of saving will enhance your life by not letting you
spend money on reckless things and accumulating it for major expenses like buying
a new car or preparing for the wedding, etc. Page 6 of 6 Make up your mind on
saving some amount from your income as soon as you get it in your savings
account. You have to make sure of being disciplined and not touch it until when you
are in extreme need.