Money management may be considered a complicated term and a concept that is not easily understood by many people. However, if you start smart and break it down into smaller, easier steps, then it becomes easier to control how you spend and save money!

According to a study released by Bank Negara Malaysia, three out of four Malaysians find it difficult to have savings as low as RM1,000 for emergency purposes. The statistics also involve individuals who work in the private sector or individuals who work in the government.

Financial problems and the risk of being burdened with debt can befall anyone if they do not know how to manage their finances prudently. However, through smart financial management will definitely help you plan your income well.

Here are 6 tips that can be used as a guide in managing your finances prudently:

1. Every time you receive a monthly salary, make sure you set aside at least 10% of your money for savings.

2. Prioritize needs over self-interest. Clarify all monthly commitments such as car, house and monthly bills first and then set the intention to spend towards fulfilling your own needs.

3. Spend according to your ability, avoid going into debt for things that are not necessary. Except to buy things that cannot be bought in cash such as cars and houses.

4. Create a savings account that does not use an ATM card to prevent you from withdrawing money at will. For example ASB savings where money withdrawal can only be done at the bank counter.

5. Make sure you have an insurance plan capable of comprehensively protecting yourself and your family. We cannot predict what will happen in the future. So, prevention is better than cure.

6. Self-discipline. We are disciplined does not mean we are stingy. If you don’t have discipline in yourself, how are you going to manage your money wisely? Want to be a failure forever? The world is very challenging every day, everything costs money & be smart.

Financial planning gives you clues to work towards achieving your goals and with good planning, you can build a comfortable life in the future.