Sunday, November 30, 2008

Treat Pocket Money as an Income in PFP

P F P - Personal Finance Planning

Above shows the whole Personal Finance idea I promote since the very beginning of this blog.  ( old blog link )

First you must have some sort of income.  Income can be obtained from business or employment or freely available.  

For example money received by house wife from her husband should be treated as some sort of her income.  A lot of time, 'smart' husband earning income may seems great and all but 80% of such husbands will face a trendmendous down fall in his life.  Employed managers may lose their jobs for 3-5 years during their 30s and 40s.  Self employ business men may lost everything they have and couldn't get back up for 5-10 years during their 40s and 50s.  Its almost a rule of thumb nowadays ...

Only a small fraction of them are able to get back on their feet on half of the time the others do.  Guess what their differences are ?

They have wives who treated their monthly merits as income and perform good finance planning on it.

And when their husband is no longer generating handsome income, basically they come to the rescue.  Instead of tons of hand bags, the smart wife only bought 1 LV etc.

There are many versions ... most of them actually just lend the money out and the husband was able to cross over the tough time and continue to earn the income with more cautious mind.  Some actually take over husband role to earn income.  Some also left their husbands and create a new world of their own.  

They are able to do it because they treated their pocket money as income and perform good finance planning on it.