Money

I think most people will encounter these four conditions with money in life.

SPENDING + EARNING + INVESTMENT + SAVING

It just depends on which stage of life and ur "personal preference" that u allocate how much percentage of urself in each of these four categories.

For example, a "normal" baby may spend 100% of the money that is allocated to him into the spending category.

Typical student, of course the money mostly will be in the spending category because of education, entertaimentt n inability to work full time. On the other hand, some will strive their best to save every bit of single cent for future consumption. More interestingly, some will say they will work their own way to get their education without the assistance of their parents (even pay back the money that their parents have gave in future).

As a student, Im not here to comment about ppl financial management because im still a student, but most importantly everybody has their right and we always bear the consequences of our decision.

In financial context, a ringgit u save today is always less than a ringgit tomolo(interest rate is always lower than inflation). It means that u may save an amount of money to buy a bungalow today, but it will be only enough to buy a terrace ten years later. A terrace in Desa Park City now cost more than RM1.8 mil!!!

So, izzit this means that we have to spend all we have now? No, if u dun save, u wont have the money to buy a hse, to buy an BMW, to go overseas for holiday etc.

But, if save now, then will be eaten by inflation. How?

Earn money lor, but again same theory apply. Starting salary 5 years ago in m'sia was about 1.8k but now is barely 2.5k. Terrace hse in Desa Park City 5 years ago was only 600k, but now already.....

So, personally i think dat investment should play a crucial role in life. Yes, investment may have risk, but with enough research and less emotional(greedy) thinking will lead u to minimize the risk in order to maximise return. Juz look at the top 100 most rich ppl in Forbes magazine, most of their financial wealth is based on their company shares, bonds and asset. The cash they hold is relatively low ratio compare to their total wealth.

In my circle of frenz, i have this two frenz A n B.

A is a vv active and smart guyz. He came from a quite wealthy family background. Always mingle around with any1 he met and enjoy alot in life. Clubbin + Beer + Branded cloth + shoe + watch + Food, juz name it. Im dare to say he is one of my most "ganas" frenz. He do enjoy every moment, every second of his life. For him, money is for enjoyment. Mebbe i can update about him more probably after 10 or 20 years?

His philosophy, U take nothing when u come to this world, die oso wont take anything to other world.

On the other hand, B is a vv passive and hardworking guyz. Came from a normal family background. Hardly go out wif us even for normal lunch or dinner provided got promotion. Always try his best to cut cost, cut dat cut here. Everything oso calculate until the smallest denomination. But guess wat? With his nearly poverty lifestyle, he manage to save a great portion of funds in his bank account, of course at the expense of his enjoyment that we all should have in our teenager life.

His philosphy, Rich ppl came from their saving habit.

Dats the real case of my frenz and i believe that there are many real similar case anywhere else.

So, i personally think that everything is about balance in life.

Moderation is the key. Extreme will always be harmful to us, economics, pharmacy drugs or even politics.

Quote of the day (from carol) :"Its always better that we learn how to earn rather than save."