Waking up and thinking about salary and expenses makes me want to share something I find interesting: financial planning, which most of us tend to forget or postpone.

According to statistics, only 25% of Thais have enough money to retire comfortably. Just imagine, if we retire at age 60 and spend 30,000 baht a month until age 80, we need to save about 7 million baht. That’s no small amount. Plus, inflation will make living costs higher. The bowl of noodles that cost 10 baht 30 years ago now costs 40-50 baht, and in 30 years, how much will it be? Thinking about it is quite concerning.

For the younger generation, government welfare is unlikely to be enough. Currently, the senior citizen allowance is 600 baht per month, and the social security fund averages 3,000 baht per month. That’s not sufficient for a good quality of life. Our children are facing rising expenses, having fewer children, so can we rely on them?

Therefore, financial planning is not a choice but a necessity. It must start today.

First, set your life goals. Save money for what? Buying a house, a car, traveling, getting married, or retiring? Having clear goals prevents your savings from drifting aimlessly.

Second, keep track of income and expenses. 90% of working people face the problem of “month-to-month no money left.” If you record consistently, you’ll see what expenses are necessary and what are luxury. There are many apps to help track income and expenses.

Third, make your own financial statement. Record all assets: bank accounts, investments, house value, car, and total debts. Mortgage payments, car loans, credit card debt. Subtracting these will show your true wealth. Try doing it—you’ll be surprised.

Fourth, prepare an emergency fund. At least 3-6 times your essential expenses. Life is unpredictable—losing a job, illness, emergencies. An emergency fund can save your life. Keep it in a safe, highly liquid place, accessible immediately.

Fifth, understand your risk. Many people insure their property, house, and car but forget to insure themselves. If the family breadwinner falls ill, medical expenses can be high, and the family could face a financial crisis. Life insurance and health insurance are just as important as property insurance.

Sixth, save before spending. Don’t wait until the end of the month. Change the equation from “Income - Expenses = Savings” to “Income - Savings = Expenses.” Start saving at least 10% of your income. If you can save more, do so. Be careful not to let loan payments exceed 45% of your income—that makes life difficult.

Seventh, have backup income. The COVID-19 pandemic clearly showed many people lost their jobs. If you have multiple income sources, spend your free time earning extra, which will make you more confident.

Eighth, make your money work. Invest the remaining money in suitable assets—stocks, mutual funds, or real estate—according to your understanding and risk tolerance. Invest at the right time for long-term gains.

Ninth, invest in knowledge. Learn about financial planning and investing. There are free resources on websites, YouTube, and podcasts. Spend 1-3 hours a week learning. This knowledge will make investing more enjoyable and smarter.

It’s not difficult. Just start by making a financial statement, preparing an emergency fund, avoiding over-indebtedness, and gradually saving and investing. Follow these steps little by little, and someday you’ll have a financial plan ready to face any crisis.