Money Hacks #7

Let’s say you earn a salary of $3k/$5k/10k

You should set aside

40% for Savings
30% for Investments
30% for expenses

I see kids spending $700+ with a $900 bank balance and throwing away $50+ on garbage in one day, subsequently having to borrow money and do interesting businesses etc.

That Balenciaga T-shirt isn’t going to impress people that are worth impressing
That PS5 isn’t going to impress anyone as well

Friend that asks you to support them by:

• Treating them good food (cost of living is crazy, isn’t it?),

• Buy them for them gifts

• Support their businesses

When you need money back, will they return it?

You’re just going to end up broke and reckless.

Savings are strictly for rainy days, eviction, retrenchment, and hospital fees.

Never touch it unless absolutely, necessary best is to have a separate bank account for that.

If you are not disciplined enough, pass it on to a family member.

No matter how close a friend is, can’t be trusted.

Investments should be divided into different categories of risk,

• Low being capital-guaranteed or close to capital-guaranteed bonds etc,

• Middle being slightly risky with a stop lost at 10-15% (Stocks, Futures, CFD, Forex )

• High risk is that you should prepare to lose the sum as a whole.

Your 30% investment portfolio should breakdown into

• Low risk investments 60%

• Mid risk investments 30%

• High risk investments 10%

Expenses should be subdivided into necessities and leisure.

After clearing your necessities like mortgage, rent, car payments, insurance, water/electricity bills, groceries, food, and amenities then you can consider the finer things in life.

What’s the point of spending $1050 on branded clothes and having to segregate $300 across one month?

One more thing, never lend anyone money.

Be it $1 or $10,000.00 never lend anyone money.

Most of the time you will end up begging that person back for the money and sour the friendship. Losing both money and friendship.

Simply say -

“It’s not convenient“,
“My policy is that I do not lend money “ or…
“I appreciate you as a friend but I don’t lend money“

If they cannot take no for an answer, they were never your friends to begin with.

Take care of yourself and your family first before impressing the streets. Social media is 90% fake so don’t be pressured by your peers and live life according to your own standard and by hard work and determination you will reach your goals.

Wishing you all the best and see you on the other side.
Malcolm