Speaking about money management, usually what come across in our minds are $$$, saving, investing, frugality, etc. you name it.
But the truth of money management is, it is not how much you earn, save and spend every month. But, what kind of lifestyle you want and wish to have.
In the course that I attended last year, the trainer asked us, “If you have 1Million Dolllars, what would you do to spend the money?”
I told him “I don’t think I would have that much”.
He replied “It’s a very pessimistic answer. When you restricted yourself from dreaming big, you won’t get out of your cocoon. Just dream and imagine, you HAVE 1 Million Dollars, and now, what would you do to SPEND the money?”
And I started counting “Buy big house, big car, go vacation, buy this and that, bla bla bla bla..”
Surprisingly I never ate up the 1 Million Dollars amount.
At the end of the presentation, he said “You must put your future life in front, what kind of life you want to have, and it will help you to plan for today’s effort”.
I guess he was very right. After thinking about spending $1M, I felt that it is a very good thing if we’re financially free. When thinking about it, it makes me realize that something has to be done to achieve that. This is relates to my previous article about thinking big or living cheap.
How money management relates with the lifestyle of your dream?
If you know about Stephen Covey’s 7 Habits, the second habit is ‘Begin with the end of mind’. It explains this terminology so much.
It is so much to do with plan and planning.
If we have plans in short, medium and long term, we’ll get a clear picture on how to manage our money wisely. Perhaps, to buy a new MPV to replace your sedan car in short, to buy a double storey house at Bukit Jelutong in medium and to retire before 45 for long term planning. All are because of you family and kids. You want to give them comfy life and more time to spend with them.
Not only wishing it, transfer those into a proper plan and you may start calculating how much you must earn, spend and save to achieve your dream. Then you’ll know how and what to do with your current savings and salary. Maybe to stop shopping tah ape2, start saving more or set up a business?
If you think that your current lifestyle won’t guide you to achieve your goal, get a courage to get out of the circle and start doing things extraordinary so that you could drive it to your goal. Don’t be afraid to change today for your tomorrow.
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