Hi, how are you today? Today I will be telling you about how I manage my money. The management is very simple. I divide the money into groups that I can either spend or keep.
I name the groups with different names. The names are:
- NEC
- FFA
- GIVE
- PLAY
- LTSS
- EDU
You must be thinking, what do these names stand for. I’ll give you your answers, here. NEC stands for necessities. FFA stands for financial freedom account. GIVE is for charity and PLAY is for fun. LTSS is long term savings. Lastly, EDU stands for education.
NEC is for your daily needs. FFA is for saving for your future and GIVE is for donating while PLAY is to spend for fun. LTSS is for saving up for some thing that is really expensive. Then, EDU is for buying things that are educational or buy stuff for school.
These groups are grouped again into SPEND and SAVE. NEC, GIVE, PLAY and EDU are included in SPEND while FFA and LTSS are in SAVE.
The money has to be divided so that the most important groups get more of the money divided. NEC has 40% of the money while FFA has 20% of the money. Then GIVE, PLAY, LTSS and EDU have 10% of the money that has been divided.
For example, if you have RM 100 and then you divide the money following my steps, then you will get RM 40 for NEC, 20 for FFA and RM 10 for all the rest of the groups.
Bye that’s all I will tell you today, bye! And don’t forget to sort your money. Thanks
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