Ah, what’s a more fitting topic to start the year, am I right? In fact, the topic of money has occupied my mind for the last couple weeks of 2022—which is why I really feel the need to write a blog about it. No matter where we stand on the economy, it is undeniable that money is an important part of our lives. We use it to fulfill our needs, satisfy our desires and help us in times of trouble. Interestingly, we all tend to see money differently from one another. There are those who see money as their worth, those who use it to help others and those who aren’t happy despite having a lot of it. Personally, I see money as a tool that can help me support the right kind of businesses, open the right kind of paths and build the right kind of endeavours.
Me and Money: Then and Now
For a long time, though, I didn’t believe myself to be “good with money.” At first, I didn’t have a lot of money, so I never really thought about it. My main goal was to have enough to last me a whole month—impossible though it may seem today. When I started earning more money, I was easily blinded by it that I ended up feeling broke still. Slowly but surely, though, I started to change the way I treated and handled money. Today I don’t believe myself a rich person—in the sense of having a great abundance of money—but I’d like to believe that I’m finally financially stable enough to save myself constant anxiety. Let me share a little bit of what I learnt about money—and where.
Ah, what’s a more fitting topic to start the year, am I right? In fact, the topic of money has occupied my mind for the last couple weeks of 2022—which is why I really feel the need to write a blog about it. No matter where we stand on the economy, it is undeniable that money is an important part of our lives. We use it to fulfill our needs, satisfy our desires and help us in times of trouble. Interestingly, we all tend to see money differently from one another. There are those who see money as their worth, those who use it to help others and those who aren’t happy despite having a lot of it. Personally, I see money as a tool that can help me support the right kind of businesses, open the right kind of paths and build the right kind of endeavours.
Me and Money: Then and Now
For a long time, though, I didn’t believe myself to be “good with money.” At first, I didn’t have a lot of money, so I never really thought about it. My main goal was to have enough to last me a whole month—impossible though it may seem today. When I started earning more money, I was easily blinded by it that I ended up feeling broke still. Slowly but surely, though, I started to change the way I treated and handled money. Today I don’t believe myself a rich person—in the sense of having a great abundance of money—but I’d like to believe that I’m finally financially stable enough to save myself constant anxiety. Let me share a little bit of what I learnt about money—and where.
Short, Medium & Long-Term Savings
The Financial Diet
Like most people, I have been taught to have savings for rainy days. And, like many people, I have been saving and saving with no particular goal in mind—blindly, as you can say. Because of that, while I do save regularly, I’m also not very disciplined about spending the savings when the occasion—that I subjectively deem appropriate—arises.
When Audrey Gonzalez shared about her 7 saving accounts, I was intrigued. What would constitute having that many saving accounts when one seems to be enough for me? Well, apparently, Audrey has different goals and, therefore, different strategies for each of them. She taught me that our savings should reflect our priorities in life, which should be treated accordingly and may differ between people. So far, I’ve only built 5 saving accounts, but it has saved me so many headaches already.
Short, Medium & Long-Term Savings
The Financial Diet
Like most people, I have been taught to have savings for rainy days. And, like many people, I have been saving and saving with no particular goal in mind—blindly, as you can say. Because of that, while I do save regularly, I’m also not very disciplined about spending the savings when the occasion—that I subjectively deem appropriate—arises.
When Audrey Gonzalez shared about her 7 saving accounts, I was intrigued. What would constitute having that many saving accounts when one seems to be enough for me? Well, apparently, Audrey has different goals and, therefore, different strategies for each of them. She taught me that our savings should reflect our priorities in life, which should be treated accordingly and may differ between people. So far, I’ve only built 5 saving accounts, but it has saved me so many headaches already.
My Saving Accounts (So Far)
Emergency Savings
Priority: Highest
Strategy: monthly must
Goal: 6 times current monthly salary
Yearly Costs
Priority: High but lax
Strategy: brick by brick
Goal: depending on the quarterly needs
Household Bills
Priority: Mid but urgent
Strategy: drain and refill
What is it? Groceries, utilities, etc. (as needed)
Future Plans
Priority: Mid and lax
Strategy: we shall see
What is it? For wedding, housing, what have you
Travel & Adventures
Priority: Low
Strategy: drain and refill
Current Goal: Bali in March for Joyland Fest
Emergency Savings
Priority: Highest
Strategy: monthly must
Goal: 6 times current monthly salary
Yearly Costs
Priority: High but lax
Strategy: brick by brick
Goal: depending on the quarterly needs
Household Bills
Priority: Mid but urgent
Strategy: drain and refill
What is it? Groceries, utilities, etc. (as needed)
Future Plans
Priority: Mid and lax
Strategy: we shall see
What is it? For wedding, housing, what have you
Travel & Adventures
Priority: Low
Strategy: drain and refill
Current Goal: Bali in March for Joyland Fest
Frank Abagnale
Talks at Google
If you’ve ever watched Catch Me If You Can, you may be familiar with the name Frank Abagnale. Yeah, he’s the so-called genius—played by Leonardo DiCaprio—who orchestrated a diverse workplace fraud when he was only 16 years old. While his story has since been put into question and he has since become a controversial figure, the fact remains that Abagnale has had experience with financial crimes and cyber security. When I came across this talk, I didn’t know about any of this doubt, yet I still find his advice pretty solid: build credit.
Frank Abagnale
Talks at Google
If you’ve ever watched Catch Me If You Can, you may be familiar with the name Frank Abagnale. Yeah, he’s the so-called genius—played by Leonardo DiCaprio—who orchestrated a diverse workplace fraud when he was only 16 years old. While his story has since been put into question and he has since become a controversial figure, the fact remains that Abagnale has had experience with financial crimes and cyber security. When I came across this talk, I didn’t know about any of this doubt, yet I still find his advice pretty solid: build credit.
“If a company hires you, they’re going to check your credit. When you buy auto insurance, they’re going to check your credit. You buy life insurance, they’re going to check your credit. Everything is based on your credit.”
Frank Abagnale
Okay, I’ll admit. All those circumstances may not be applicable everywhere on earth—I don’t think companies in Indonesia check their employee’s credits upon hiring—but credit scores are definitely still important when buying assets that require years to pay off, such as houses and cars.
Most people I know tend to avoid credit cards like it’s the plague. The truth is credit cards are like knives: if you use it well, it’ll be useful to you; otherwise, it will be dangerous for you—which is why I try to use mine wisely, and it has served me well thus far.
“If a company hires you, they’re going to check your credit. When you buy auto insurance, they’re going to check your credit. You buy life insurance, they’re going to check your credit. Everything is based on your credit.”
Frank Abagnale
Okay, I’ll admit. All those circumstances may not be applicable everywhere on earth—I don’t think companies in Indonesia check their employee’s credits upon hiring—but credit scores are definitely still important when buying assets that require years to pay off, such as houses and cars.
Most people I know tend to avoid credit cards like it’s the plague. The truth is credit cards are like knives: if you use it well, it’ll be useful to you; otherwise, it will be dangerous for you—which is why I try to use mine wisely, and it has served me well thus far.
The Latte Factor
David Bach and John David Mann
I feel very basic by referring to this book, but—what can I say?—it’s a popular book for good reason. A lot of my friends rave about it and I can see why. If we ignore the fact that it’s pretty surface level and negligence towards the marginalised groups who may have less privilege and/or extra needs, this book hits at the very core of what it means to be an upper middle class in today’s society—and why we still feel like we are broke.
In summary, this book talks of the three secrets to financial stability—which it calls financial freedom, even though it’s something else entirely. What strikes a chord with me the most is actually the first secret: Pay Yourself First. It basically urges you to put your wage into savings before paying for anything else. The argument is why would you pay others before you, who worked so hard for said money? Good point.
The Latte Factor
David Bach and John David Mann
I feel very basic by referring to this book, but—what can I say?—it’s a popular book for good reason. A lot of my friends rave about it and I can see why. If we ignore the fact that it’s pretty surface level and negligence towards the marginalised groups who may have less privilege and/or extra needs, this book hits at the very core of what it means to be an upper middle class in today’s society—and why we still feel like we are broke.
In summary, this book talks of the three secrets to financial stability—which it calls financial freedom, even though it’s something else entirely. What strikes a chord with me the most is actually the first secret: Pay Yourself First. It basically urges you to put your wage into savings before paying for anything else. The argument is why would you pay others before you, who worked so hard for said money? Good point.
This whole time I had been doing it the other way around, actually. I would pay all my bills first before even thinking of putting some into my savings. If the remaining money in my account seems to not be enough for the rest of the month and savings, I would refrain from putting some away. After several months, I would wonder why my savings seem to still be meager in size. I should’ve remembered that, at the end of the day, the money I put into my saving accounts are to be used in later years. That way, it won’t feel like just another bill I should pay off, but an investment in myself.
On a Personal Level
While the sources I mentioned above are great, I owe my current outlook on money to Agung the most. He was the first person who truly helped me put aside money for savings and planning my monthly expenses, so that I may never feel lacking of anything. He himself is pretty discipline when it comes to money management, although he may not be a financial guru. For me, learning from someone real who I actually know helps me a lot in applying their teachings to my life—especially if we are of similar economic background with similar spending habits and/or daily needs.
Other than him, I would often look at money management materials online. My favourite is The Financial Diet whose YouTube videos I would often watch and podcasts I would often tune into. As a financial consultancy and advisory brand built by women, TFD resonates with my needs and spending habits a lot—which helps put things into perspective. However, since they are US-based, a lot of their advice would often not be applicable to my situation. For local insights, I would sometimes drop by Samuel & Claudya‘s channel. This husband-and-wive combo is truly inspiring on an attainable way.
I really don’t believe that money is toxic. In the past few years, I have been lucky enough to progress upwards in terms of my income, after experiencing how unstable it was for years previously. That being said, I’d like to believe that I never let my reasonable wealth get to my head. And I’m proud to say that the things I said I would do once I have money when I didn’t—such as supporting businesses and organisations I believe in—I followed through once I did. At the end of the day, money is just a tool. To use it for good or for evil, you decide!
What is one money practice that has served you well?
Do share in the comments!
This whole time I had been doing it the other way around, actually. I would pay all my bills first before even thinking of putting some into my savings. If the remaining money in my account seems to not be enough for the rest of the month and savings, I would refrain from putting some away. After several months, I would wonder why my savings seem to still be meager in size. I should’ve remembered that, at the end of the day, the money I put into my saving accounts are to be used in later years. That way, it won’t feel like just another bill I should pay off, but an investment in myself.
On a Personal Level
While the sources I mentioned above are great, I owe my current outlook on money to Agung the most. He was the first person who truly helped me put aside money for savings and planning my monthly expenses, so that I may never feel lacking of anything. He himself is pretty discipline when it comes to money management, although he may not be a financial guru. For me, learning from someone real who I actually know helps me a lot in applying their teachings to my life—especially if we are of similar economic background with similar spending habits and/or daily needs.
Other than him, I would often look at money management materials online. My favourite is The Financial Diet whose YouTube videos I would often watch and podcasts I would often tune into. As a financial consultancy and advisory brand built by women, TFD resonates with my needs and spending habits a lot—which helps put things into perspective. However, since they are US-based, a lot of their advice would often not be applicable to my situation. For local insights, I would sometimes drop by Samuel & Claudya‘s channel. This husband-and-wive combo is truly inspiring on an attainable way.
I really don’t believe that money is toxic. In the past few years, I have been lucky enough to progress upwards in terms of my income, after experiencing how unstable it was for years previously. That being said, I’d like to believe that I never let my reasonable wealth get to my head. And I’m proud to say that the things I said I would do once I have money when I didn’t—such as supporting businesses and organisations I believe in—I followed through once I did. At the end of the day, money is just a tool. To use it for good or for evil, you decide!
What is one money practice that has served you well?
Do share in the comments!