My brother has high salary but he can save so much money. He often spend the money for leisure things. He buy the gadget; whereas, he has had new gadget. He also like cars and he has three cars. He also charity to our family. He used to give his nephew and niece five to ten dollars. That is why his nephew and niece also love him. He is a generous man.
The company that he work also provide health benefit. He will get some money when he sick. The company also provides retirement fund. He has so much money because he has not yet married. He does not need to pay the school fee for the kid. He also does not need to buy food and cloth for family. However, he should manage the money for the future. Someday, he will marry a girl and must fulfill the family needs.
I also suggest him to buy a house or land but he seem no hear me. I believe he can collect so many assets by investing in stock or other investment.
Here are the money management tips for single:
1. Create a budget
We can set a part for the various spending. The budget help the single to manage their money. They can thrift the spending. The single should save more for the future. They maybe easy to get the money now but someday they will be difficult to find money. They should save so much money to cover them.
List the expenses that you use to spend. It is not difficult to do it. Write the expenses in a spreadsheet or note book. The first expenses are the most important expenses such as food, cloth, gasoline, transportation cost, apartment fee, and so on. Then watch the list. You can reduce the item that you do not need it very much.
Separate the need to the want. The money is never enough to buy your want. You have to drive your self to buy useless things. Reduce eating out o save hundreds dollar a month.
Be clever to spend your money too. Buy used things that are cheaper than new one. As long we can select the item, we can get the good items. We can buy used book or hire it at library.
A single will married someday and they need to save money for it. The cost of wedding is high too. In my country, the man should provide bride price for the woman. The bride price is not cheap.
Do no forget to allocate some money for saving. A least you need to allocate you salary to your saving. The rule of thumb is ten percent. I hear Chinese labor can save 70% of their salary and they also invest he money at capital market. They could reach wealth soon though hey are jus a labor.
2. Avoid to buy everything
A single woman often buy the cloth, accessories, cosmetics, and so much. They want to looks beautiful. They can spend thousand dollars a month for spa, salon, and others. On the other hand, a single man tends to buy gadget or electronics. They can save thousand dollars to satisfy their curiosity on the gadget. A single man also likes car or motorcycle. He can buy so many cars for showing to his friend. They want to
They have to press the desire to buy anything. You just need gadget to communicate to other people. You may do not need the feature of the gadget. Use the gadget until it broke and you can buy the new one.
3. Set the emergency fund
Set aside liquid cash for emergency fund. When you need cash immediately, you can use it. Some people who does not set the emergency fund will find debt to cover the living cost. They must payback the debt with interest. Emergency fund or rainy day will avoid you increase debt.
Emergency fund is like umbrella in rainy day. The umbrella will protect us from the rainy day.
The amount of the emergency fund depends on your routines spending. If you spend more money, you have to set more money for emergency fund. Thus, multiply your monthly spending with six or twelve times. That is he rule thumb of emergency fund.
Where do we put the fund? Some people may hold the cash at the house. I think it is not safe. You can also put the emergency fund in short term investment or liquid investment so you can withdraw the fund wherever you need.
Financial Planning for 30's
Golden rule for financial prosperity