Through the process of managing family spending, Ms. Nguyen Huong Ngan - a civil servant in Son La province - realized that the amount of money earned is not the only factor determining the ability to accumulate. More importantly, the way each person distributes income and maintains financial discipline.
Ms. Ngan shared that many people plan to save only after getting a raise, changing jobs or having additional income. However, when income increases, spending levels usually also increase accordingly.
With a salary of 10 million VND/month, one person can rent a room for 3 million VND/month. When the salary rises to 15 million VND/month, they want to live in a better place; income reaches 25 million VND/month, and shopping demand is expanding.
If we don't change the way money is managed, no matter how much salary, we can spend it all," Ms. Ngan said.
According to her, as soon as they receive their salary, each person should transfer 10-20% of their income to a savings account. People with many financial obligations can start at a lower rate. The important thing is to consider saving as a mandatory amount, instead of waiting for the end of the month to have a surplus.
Office women often suffer from pressure from work, family and expectations of success and independence. Rewarding themselves after tiring days is legitimate, but it will become a problem if used to justify all expenses.
When tired, they order food, when sad, they buy clothes, and when rewarded, they immediately buy expensive items. At that time, money is used to adjust emotions instead of meeting real needs.
Ms. Ngan suggested allocating 5-10% of her income to the "enjoyment fund". Each person can use this amount without feeling guilty, but when the fund runs out, they do not take living expenses or savings to continue spending.
Before buying, women should ask themselves: "Do I really need this item or just want to feel better?".
Some people think a few million VND is not worth accumulating; wanting to have assets must start with real estate, gold or in-depth investment knowledge. This thought makes them postpone setting up a reserve fund and continue to spend all income.
According to Ms. Ngan, accumulation can start with a private savings account and a provision fund equivalent to 3-6 months of essential expenses. After that, each person considers gold or financial products that are suitable for their goals and risk-bearing capacity.
Investing in skills to increase income, buying necessary insurance also helps protect the financial foundation. However, you should only choose products that you understand clearly, read the terms carefully and avoid invitations to commit high profits and get rich quickly.
Asset accumulation does not start from how much you earn, but from the decision to keep how much for the future. A small amount maintained each month cannot help the family get rich immediately, but it will reduce dependence and bring more choices," Ms. Ngan said.
