Common "Cents" About Money

1. Develop a budget and track what you spend.
   Many do not plan a budget because they do not know how or think it is boring and a waste of time. But "Failing to plan is planning to fail".
   I) There are various approaches to work out a budget. The first step is to differentiate your 'Needs" from your unlimited "Wants". Next, allocate the budget for your needs, then savings and the remainder for your wants.
   II) Budgeting can be interesting and insightful. You might realized that you are overspending in unnecessary areas and that expense could be channeled to areas that interest you more.
   III) Track your expenditure to ensure it is within your planned budget. There are many free online software/spreadsheets you can use.
   IV) Finally, review your budget as your circumstances change.
    
2. Have an emergency fund.
   It is surprising how most people live from paycheck to paycheck, even though it is common sense that the most fundamental money skill is "Spend Less Than You Earn" to "Save For A Rainy Day".
   Spending everything you make is fine until something crops up, like unexpected repairs, lost of job, medical crisis, etc.
   I) A general rule of thumb is it has to be as least 3 months of your income.
   II) It should be held as a liquid asset such as cash, else you will suffer delay or losses should you suddenly be required to draw from it.
    
3. Educate yourself.
   Relaying solely on what you were taught in school about money is not enough. "In school, you are taught a lesson and given a test; In life, you are given a test to teach you a lesson." Put in some effort to find the best deals and seek to continuously improve yourself.
   I) Search for the best interest rates for savings and loans.
   II) Compare the benefits of various credit cards.
   III) Be informed of the latest promotions and offers.
   IV) Find out how and what to invest.
   V) Learn to develop a proper investment portfolio.
   VI) Improve yourself and learn ways to generate more income.
   

Take control of your finances and do not become a slave for money. Like setting aside time to study for tests in school, we should set aside time to manage and learn about money in the test of life.