EFFECTIVE PERSONAL FINANCIAL MANAGEMENT
In the previous article I shared about “3 MISTAKES IN PERSONAL FINANCIAL MANAGEMENT”, today I will share about my current financial management method.
First of all, I want to make it clear that I do not must be a financial expert and my sharing is completely based on my personal financial management experience.
I am not a millionaire or billionaire in the US, but I believe that any of us, no matter what our income level or financial status, is more knowledgeable about personal financial management.
There are 3 important things I focus on in my personal finances: Increase income + Saving + Investment.
1. INCREASE INCOME
I don’t want to depend on any job, and so I always want to create a lot of cash flow.
Since I was a medical student, I’ve had a small online business project with a close friend, and also have extra income from simple ways like bonuses when using credit cards. Currently, when I am a doctor in the US, I also want to continue to try business projects.
Most of the business projects I have participated in came from my hobbies, so I have both an additional source of income and joy. For example, I am currently developing Phoenix Academy.
Actually, the tuition fees from the students are not much compared to my salary in the US, but this job also helps me create more jobs for many young people in Vietnam as well as bring a lot of value to the community.
2. SAVINGS
In addition to increasing my income, I also focus on saving, even though my salary is now much higher than when I was a poor student. My friends of the same age live in houses worth 7-8 hundred thousand dollars, but I only live in a moderate house, just enough for the couple to live and 2 children to run around.
A secret to help me save and reduce shopping is: Every time I need to buy something, I calculate in my head how many working hours this item represents. If I buy a bag and have to work 10 hours, I won’t buy it again.
Time is priceless, so using this way of thinking helps you better understand the value of money, and avoid wasteful purchases.
3. PERSONAL FINANCIAL MANAGEMENT AND INVESTMENT
Although I am frugal and frugal with buying “expendable” items, I promote investing in accumulating ASSETS. My point of view is that every penny I make needs to benefit me, one way or another.
So what do I invest in?
First, I invest in myself and my family.
Invest in delicious and nutritious food, a gym account, go to the doctor or dentist to take care of my health, travel and have interesting experiences to regain my spirit. These are the things I don’t skimp on. Besides, investing in health insurance, life insurance, and disability insurance are also investments that I focus on.
Next is investing in knowledge and skills for myself and my family
In the past two years, I have invested nearly half a billion to learn more soft skills and business skills.
Doctors are of course not good at business, so I know that weakness and have to seek training from a master. Not only do I have knowledge and skills, but these courses also help me expand my vision and change my thinking a lot.
I have realized that to have a better life, I need to upgrade myself every day to become valuable to society. The more value I bring to others, the more advancement I will have in life.
In addition, I also invest in sending my children to schools with educational methods that I believe are best for my children, even though the tuition is not small. If you are interested in the topic of children’s education, please comment so I can write an article to share.
Next is investing in money-making tools.
“Using money to make money.”
In this section, I have real estate projects, business projects, and stocks. I think that each of my investment projects is like planting a tree. Maybe we won’t see anything significant now, but in time when the project is profitable, we will have sweet fruits to harvest.
Of course, any investment has risks. That’s why investing in learning is even more important. But if you don’t plant trees, you certainly won’t have fruit to eat.
You may be thinking that you have little income, so how can you invest?
I used to think the same as you, but one thing that helped me overcome that fear and start investing since I was a poor student is the motto “Invest first, spend later.”
For example, I will make a commitment to myself to invest 20%. salary, each month the bank will automatically withdraw money and deposit it directly into the investment account. As long as there is money left over, I will spend it on food and fish sauce.
Because spending is never enough, waiting to finish spending before investing will make it very difficult to achieve your goals.
This is my financial management story.
I hope these shares will also be helpful to you.
Please comment “yes” if the article is useful to you.
