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Time Value of Money: How to Determine the Value of Money with Respect to Time

Money received today is more valuable than the same amount of money a year from now. It is essential to understand the relation between mone...

Doing the 52 Week Challenge

Every year I try to find new ways to improve my financial status. Last January I came across a savings strategy called the 52 week challenge. Although the idea originally came from Life as you live it, I read the article from Kuripot pinay.

The challenge is to save every week with a constant increasing amount every week. Unlike saving a constant amount every week, the increasing amount required allows you to slowly adjust your lifestyle in order to achieve the required amount each week. If you religiously stick to saving the required amount each week, you'll end up saving a huge amount at the end of the year.

The Importance of Delayed Gratification

Last month I decided to review my past expenses for the last couple of years. Ever since I decided to properly manage my finances, I have managed to drastically reduce my expense. After examining my past expenditure I realized I spent a lot of my income on unnecessary expenses.

Gross Total Income VS Total Expense
Although I religiously invested 10% of my income since I started working, I could have invested more had I resisted the temptation of purchasing unnecessary items. Above is a graph showing my total income in relation to the total expenses I incurred in the last seven years. I deferred my credit card debt during those instances when my expenses exceeded my income.