We make extra money, and suddenly life costs more?

I believe that we need to be organised in anything we do, including and especially our finance. To be frank, I have seen many of my friends - even at this young age of mine - fall into the trap of financial struggle. For example, they got about $1500 for 3-month allowance, which is more than enough in my place. For me, it is enough because I can save about $50 each month, which is quite good for me. However, most of them - and I mean most of them - has barely $200 at the end of the second month. How they are supposed to live with that amount of money?

Indeed we don't have to. However, most people have the mindset that every dime earned is to be spent. Some of them even have the mindset that the credit is always at his/her disposal. This is not even the case when the bank started to chase you around asking for your loan payment. I have always believed at the idea of getting some luxuries every now and then. It is our basic needs as a human being. Nevertheless, I always put in mind that luxuries come last. I should put my effort more on making investments for my future and all the luxuries can be put forward to be enjoyed when I retire. And I like the idea of buying silver/gold bars. Do you happen to know any sites offering such services?

Hi Livecenter, since you live in Malaysia, you can get a gold coin of 1 oz size from Maybank. In case you do not know, that is the 99.9% pure gold coin minted by the Malaysia government. The price is pegged to the international gold spot rate plus a premium. That means you can buy and sell the gold coin, and treat it as an investment. For gold bars, UOB bank is reputable for selling it. You can also buy at the goldsmith shop. Just ask for Pump Suisse gold bar, which is made by the Swiss. The purity is again 99.9%. The rate changes everyday, since it is pegged to the international gold price too. As for silver, I do not know if you can get it in your country. I get it online from Scottsdale Silver, and they send to my house.

Hi scheng1! Thanks for the tips! Perhaps I would consider taking a loan to buy those bars. I believe this is the real wealth - wealth that has values and has increasing values - and not the paper money, which actually has no value and often - if not always - reduced in value. Thanks again for the heads up!

@gemmar: Although we are adapted to spend our money as much as we can, I believe we need to change that attitude. I have seen many people spending as there is no tomorrow the day they got their allowances/paycheck. And believe me, they are begging me to lend them some money at the middle of the same month! And unfortunately that happens almost every month, although the borrowers change. The simplest way to be better financially - spend less than what you earn. Period. And yet many people unable to follow this simple piece of advice.

Indeed human wants are unlimited, but if we let that to happen I believe sooner or later it will be financially disastrous for us. It is up to ourselves to break the chain and start saving some money for the future. The sky doesn't always bright, does it?

Earning and saving must be there. But where we fail often is when we earn and spend without realizing the limit of spending. The money we spend for daily needs and meds are worthy enough. But sometimes we end up spending our hard earned money on buying unnecessary gadgets which may seem to be fancy but certainly can be avoidable. Once in a while its OK but every now and then, it must be avoidable. Since the cost of living is very high now, we must definitely learn to save. It would be gud for our family.

I couldn't agree more with you. Nowadays the cost of living is very high, not to mention the price of oil. Still, most of us spend like the world is going to end tomorrow. I don't believe in being too frugal, but it is a good habit nevertheless. I don't say don't spend, but spend wisely. However, I wondered why this simple concept cannot be digested by many of us, leading to disastrous financial situation that we always hear in the news. It is very simple concept - spend less than what you earn - and yet those people cannot get enough of their misery.

@vrilya: Agreed. One of the reasons why the price of everything is higher nowadays is that the money has reduced in value. We all know that before 1971, the dollars were backed up by gold - thus limiting its printing. The printing can only be done when the value of gold increases, which is a more stable system. Nowadays the system is not backed up by anything - and I mean nothing. Of course, that allows the dollar to be printed more and can support more development in the country. However, too much of anything cannot be good - the dollar loses its value and that is a bad news for us the people.