Boosting your assets

It is a sad fact for most people that saving all that money in the back does not give the same buzz as spending it on a new pair of shoes or that hand phone you have been eyeing. Many of us feel like there's no point in sorting out our finances until we get higher pay or decide to invest in something such as a car or even a home. However, it's never too late to start taking control of your financial situation. Upping your financial knowledge does not, and will not make your life boring either. On the contrary, it will empower you with confidence and help you make the most out of your hard earned cash.

Budget
Make a list of everything that you earn and everything you spend on. Make sure what's coming covers what's going out with left over for savings. Do not restrict yourself too much or you'll never stick to it- ensure you give yourself enough to spend every month with reason. Software such as Microsoft Money or Quicken can help to get you organized and keep track of everything. Always know how much you spend and avoid unnecessary buys.

Create an emergency fund
Set up an emergency fun account by setting aside some money each month (depending on how much you earn monthly). Setting up this account will enable you to fix that broken fridge or your malfunctioning PC without having to dip into your savings.

Have a dream
Motivate yourself to save by giving yourself a reward once you have saved a certain amount (don't overspend though). Give yourself something to work towards to make it all worthwhile.

Pay yourself first
Make yourself a must-pay expense. When paying your monthly bills, add yourself to your list of creditors & set up an automatic transfer from your current account into your savings account. Soon you won't even miss the money and it will become a pain-free way making sure you save.

Balance the books
Keep receipts from any big purchases along with withdrawal and deposit slips from the bank each month. When you receive your monthly bank statement, check whether everything adds up. This will give you a feel for how much you are spending.

Don't ignore bills
If you can't afford to pay the bills, don't hope they'll go away. Ignoring the bills will cause you extra stress than not being able to pay for it in the first place as well as incurring extra late-payment charges. Call the company that you owe money to work out an installment plan so that that you can pay off your debt in manageable segments.

Don't get held back by debt
There isn't much use in starting to save and invest if you have debts waiting to be paid up. Be brave, sit down and lay out all your debts in front of you. Next, resolve to pay off at least the minimum amount and a chunk extra every month until you are clear. Don't go credit card crazy!

Don't just pay off the minimum each month
Otherwise you'll be effectively throwing money out the window through the interest charges you incur. If you are putting unnecessary items such as clothes and nights out on your card and can't seem to pay it off each month, then you have to face the fact that you are living beyond your means. Try adjusting your spending.

Don't get too comfortable with your account
Make sure you are getting the most out of your bank account. Different people need different things from their bank, so it doesn't mean that you have to bank at a certain place just because someone you know does. Pick up brochures or speak with the counter service personnel on service charges, savings plans, etc to make sure you're getting what you want. If you are very busy or travel a lot, take advantage of phone or Internet banking- it's cheaper & faster!

Don't go to the ATM too often
You are likely to spend more if you constantly run to the ATM. Work out how much you need to spend each day on food, socializing or transport. Then make one visit to the ATM every week. This should make you think twice about spending on unnecessary extras. If you don't have the money, don't spend.

Don't just leave your money in the bank
Don't invest all your savings in one place. Here diversification is the key word. Spreading your savings between several types of investments- fixed income, stocks and shares, mutual funds, cash is the safest way to invest long term. When investing, don't touch your money for at least three to five years- this is the time when you'll start seeing higher returns.

Wise up
When investing in stocks and shares, never just hand over the responsibility to your broker or fund manager. Do some homework and monitor the business that you have invested in, as well as the economy in general so that you know for yourself about what's happening. Read the paper or surf the Internet for a fast and easy way to update yourself.

Don't go overboard with renovations
Don't be too enthusiastic and go overboard with renovations. Spend only 10% or less of your property's value on renovations.

Save a little every day
Make your own breakfast everyday instead of spending that RM3 on roti canai and teh tarik at your office cafeteria. Take a bus home instead of a taxi. What's the incentive? By popping the RM 3 you saved, you'll have over RM 1000 by the end of the year. Think about THAT!

Saving money isn't all that hard. All you have to do is to think about where you want to be and what you want to do in a few years. Will your finances allow you to do so? Review your monetary situation now with the future in mind so that you can afford to anything your heart desires.