I notice many Indonesian like to spend money on unimportant stuff, then wonder why their salary is never enough. I should open a course on personal financial management

I am gravely concerned…..gravely concerned…

It’s like all around me i see people spending money on unimportant stuff, stuff that they don’t really need and can’t really afford.

I believe all my career talk will be useless if the readers are not aware of how to manage their money properly. It’s like telling someone to pipe water, when the same person use a leaking pipe. So here i am, speaking about the basic of personal finance.


1. Be a self secure and self confident person. Basic, basic, basic. No items, no other person, nothing beyond yourself, can make you a self confident and self secure person. Self Confidence, by definition, comes from the Self. Money and Stuffs cannot support your self security and confidence. I came from an unprivileged background, i understand the temptation to buy and attach items to make myself look more valuable/important to people i want to see me as valuable/important (aka. everyone). But you know what? Would you rather have a group of person that accepts you as you are or a an entire planet of strangers that accept you when you have stuff attached to yourself? Under which condition would you feel happy?

(some people will still answer, “i prefer an entire planet of strangers who accept only the ++me, not the real me, only under that condition i will be happy”, whatever, if someone read this blog and still in that mental stage, i cannot help him/her, go find God)

I understand if you’re ultimate wish in life is to be happy, accepted, respected. I’m just saying that these kind of things begins with the Self.

2. Have a financial goal. Understand WHY do you want more money? I would suggest goals such as: to be able to provide the best means in life for my family, to be free to provide time commitment to my family, to be able to serve a good cause. Why these goals? why not “to be the richest man on earth”, “to be the most admired person on earth”, “to be the guy with the most toys at his grave”, “to be the woman with the biggest LV collection at her grave”, because as you can see, all are bullshit goals. You’re ultimate wish in life is to be happy, my suggested goals allow this, the BS goals don’t allow this.

3. Build a Budget. These things comes first: charity, savings, bills. Plan around these 3 things. Have you notice that money always leaked? It’s like no matter how much you have in your wallet, it will disappear. That’s why, the best to save is to commit to save. By allocating money to be save, and separated the money early, you can force yourself only to spend when your savings already been build.

At this point, self discipline comes into play. Discipline may sound like a bad, no-fun word. But have you notice any super league sportsman or artist? (to ensure this post stay relevant, i will not mention names) All that they achieve, all their performance, are possible due to self-discipline.

4. Record you expenses. This is an ridicilously boring job but very usefuil. How?

– Allows you to see where all those money went

– Prevent you from frivolous spending (after seeing how silly you spend the previous month)

– help build self discipline

5. Plan major expenses. If you intent to buy anything of significant value (say, 10% of your monthly income), plan it. Don’t spend 10% of your income on impulses. Plan it, by planning it, you are aware of the spending impact to your account, you make the best purchasing decision (we easily buy lesser quality items if we buy on impulses).

Ok, those are the basics. After this, comes investing.

ps: you might ask “is this guy just talking? does any of those stuff above really work?”.  well, to share some fact, at the moment, i don’t make a super huge amount of income, but i manage to save around 40% of my income. The rest goes to supporting my parents and charity, i only use about 20% of of my income for personal use.

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