Five Money Management Levels by Djitz

Five Levels of Money

Management

Djitz

logicallyabstract.blogspot.com

1. Do you have financial

goal(s) ?

• Financial goal motivates and

guides you.

• Gives you answer to the

question, "Does spending

money on this gets me closer

to my goal?"

• The goal should be specific,

have an amount, and a

deadline.

• My financial goals:

o $100,000 at 30 yrs old

o $1,000,000 at 40 yrs old

o $10,000,000 at 50 yrs old

2. Do you know how much

you spend every month?

• What is not measured

is not managed.

• Answers the popular question,

"Where did all my money go?"

• My answer:

Yes, I track my expenses on a

spreadsheet.

3. Do you spend more

than what you earn?

• Live according to what you have,

not what you want.

• Never take consumer debt, those

stuff lost value and you pay more

due to interest.

• Remember your goal before you

spend, "Does spending money on

this gets me closer to my goal?"

• My answer:

No, I spend only around 40% of what

I earn every month.

4. Do you have emergency

savings fund (6x monthly

expenses)?

• Provides buffer when large amount

of money is needed urgently.

• Save you from bad and limited

financial options.

• We can't predict the future, but we

can be ready when it happens.

• My answer:

Yes, I have more than 12x monthly

expense emergency savings fund.

5. Do you invest your money

with an average return

greater than inflation rate?

• Today's $100 worth only $55

20 years from now.

• You will need more amount of

money to sustain your current

lifestyle in the future.

• My answer:

Not completely, I'm still working on this

one.

How about you?

At what level are you now?

Slides and contents by Djitz

logicallyabstract.blogspot.com