BY Neak Oknha Kith Meng

    There is no perfect formulas behind a financial management. How you save, spend and invest all depends on your priorities and goals, both short-term and long-term. The fastest route to obtain more is, of course, to invest, although the higher the return, the higher the risks. 

    Not all expenditure is a waste of money. Sometimes, it creates an intrinsic satisfaction to balance your mental health, and these could result in self-motivation to do more. It makes sense that you deserve to treat yourself every now and then. But I personally encourage “Spending Right” - think before any big expenditure and do not go beyond what we can afford - live below your means. 

    If your goal is to save $100k in 20 years, you just need to save $13.7 everyday. A small amount everyday will grow but “Saving” needs a lot of patience, effort and consistency. Many researches have shown that 20% of your annual income is the appropriate amount that should go into savings.     “Investment” requires more patience; more like planting a tree and waiting for its fruits to bore. For those not in a rush to make a returns, then investing in something you believe in and have done a thorough research could be the next best step. Set aside your disposable annual income, 10-15% of it could be utilized for investment purposes.