With a limited inflow of cash monthly and many sources of outflow. It is important that we properly allocate our monthly salary. How I go about is as follows:
1. Pay off all DEBTS (credit card, allowance to parents, insurance etc)
2. Pay MYSELF (Allocating a sum of money for savings and investment)
3 . Rest for SPENDING
By adopting this method, I ensure that I will not have bad debts snowballing. Paying myself next because it gives me a psychological effect that I can only spend what is left.
I have seen colleagues spending once they receive their paychecks. At the end they do not have enough left over to save, even worst get into debt. Financial literacy not need be complicated, by making small changes on how we manage our paycheck makes a big difference.