2013 - 08 : Financial Management for Middle Class People

As we entered working environment, we got exposed with a lot of things and it's overwhelming. My first salary made me felt like i was a very rich person till i started spending it. Apparently it wasnt that much. Then people started to approach you with a lot investment proposal or other "businesses" to multiple your money which required us to make bank loan  with the promises of big return (but in some cases, it's not). The question is how to know how much you can afford to risk?
This is the financial management tips for middle class people that i got from "Abg Long" aka Amin, a colleague of mine.
Basically, your monthly salary should be divided into 3 accounts

1. Account 1 (70% from monthly Salary) - Expenses - It's for your monthly expenses (car loan, housing mortgage, bills, food, grocery, shopping...). All these expenses need to be budgeted within 70% of your monthly salary.   
2. Account 2 ( 20% from monthly salary) - Security or Reserved - This is for your emergency fund as in when you need a lot of cash in a short time ie losing your job, car broke down, health treatment while waiting for insurance claim (if any), travelling..hehe ( it's depend on what you define as emergency) The total saving in this account has to be at least 6 times your monthly salary at all the time. It means that in case that you take some money from this fund, it must be replaced since this account is your liquidated asset. 
3. Account 3 ( 10% from monthly salary) - Investment - This is the investment ie unit trust, bond, buying stock or other things. Once the amount in account 2 is sufficient ( 6 X monthly salary), you might use excess money in account 2 into account 3. So you have 30% from your monthly salary for investment.  

This is proposed by "Abg Long" but of-course different people have different approach in managing their financial. Just we need one that suit our lifestyle. Mastering financial management does not mean that it will make you a very wealthy person (unless you invest in a very profitable stock)  but it might save you from a deep debt.