Manage your money like a sushi chef
Everyone loves sushi, especially those that come automatically on a conveyor belt! Mainly for the taste, of course, but we can also take some lessons from the sushi conveyor belt to help us grow our money.
Since the last post on segregation of accounts (How that ah beng become richer than you), many may have started opening accounts and figuring out what to do with them. Today, I will share how the money and the accounts go to work for me.
Automatic Money Distribution
First, money that comes in heads straight to the utility accounts via automatic distribution, like what a sushi chef does after preparing the sushi - put it on automatic conveyor belts to send out the sushi! To do this, i set up GIRO or automatic recurrent transfers.
So let’s say I received $1,000 pay this month, I will distribute them in fixed percentages (which i decided on earlier).
- 20% in savings
- 30% living expenses
- 20% taxes, car loan, mortgage, etc
- 20% financial objectives
- 5% opportunity fund
The above is just an example. So say I have $2,000 in my Maybank iSavvy account, $1,000 is for furniture, $500 is for an upcoming Christmas present and so on. This makes it a lot easier to plan purchases and make better financial decisions including investments.
Now you don’t have to feel lousy having to postpone a purchase because you ran out of budget.
Having put in so much sweat and blood into those dollars, you will want to have a nice system to help in the management. In time to come it will be routine and walla you feel like you are moving closer to your dreams.
This is what we call PAYING YOURSELF FIRST!
What about the last (missing) 5%?
Very observant - why, that’s simply your spending cash, your monthly discretionary money for rewarding yourself for your hard work! :) After all, the rest of your money is already not in your main account anymore, so you can only spend this 5%.
Do you already do something similar?
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