With the continuous increase in the prices of houses and cars, it seems like an impossible feat to own either one of them if your income is not more than RM5000 per month. However, we have managed to come out with a formula which enables you to own a house and a car in 5 years' time with a monthly income of just RM2000. All you need is to follow these 5 rules!
1) Food and transportation cost should not exceed RM600 per month
It is said that breakfast is the most important meal of the day. Eat breakfast like a King, lunch like a prince and dinner like a pauper. For a healthy diet, always have a healthy breakfast to start off the day, a good selection would consist of egg, soya, and oats. Lunch is good to have rice with dishes, "chap fan" also known as "economy rice" offers your a wide variety of dishes. And for dinner, make your own salad at home which is a good way to end a healthy diet. Maintaining a healthy diet doesn't cost much. This diet would probably cost less than RM500 which leaves you a balance of RM100 for your transportation.
2) Monthly entertainment should not exceed RM400
Entertainment includes making friends and building network. Many would think that RM400 for entertainment is a bit too little, but if you look after your expenses wisely, RM400 for monthly entertainment is actually more than enough. Every 2 weeks, bring a friend out and treat them to a nice lunch which could cost up to RM150 each. Who should you buy lunch for? Always remember to buy lunch for people who are more knowledgeable than you, richer than you or people who have helped you in your career. Make sure you do that every month. After one year, your circle of friends should have generated tremendous value for you. Your reputation, influence, added value will be clearly recognized. You’ll also enhance your image of being good and generous. And the balance RM100 use it for your telephone expenses.
3) Spend RM300 per month to enhance your knowledge
This is quite easy, use RM50-100 a month on books. Buy books and read them finish every month. These can enhance your knowledge and build a good image for yourself. The balance RM200 can be used to attend seminar or courses to add value and to make friends with those who have common interest or goals.
4) Save RM200 per month for traveling
Everyone should reward themselves by traveling. This can help you relax and be more productive after the break. Saving RM200 a month, you can actually travel to many places. Of course saving cost would be an important issue as well, accommodations must be chosen wisely such as, staying in a friends place or perhaps sharing a budget hotel with friends could also lower the cost of traveling. By traveling it actually widens your horizon and you get to interact with different people.
5) Save the balance RM500 for investment
Do not rush into making an investment. Always take your time and slowly study the things which you plan to invest in. At the same time, you could also save the money, once you have a substantial sum, you could actually think of starting a small business. If the business is making losses, learn how to stop the business because at the end of the day, it is only a small sum. When the investment starts to make money then you can start buying a house and a car. Do not spend money unnecessarily especially on clothing.