After the Lunar New Year celebration, you might be wondering what you should do with all the angpao money or even how to manage your money in this new year. Money management may be stressful if you're not sure how to start. It is common for many to disregard their finances. 

Therefore, if you want to experience financial stability and eventually, financial independence, competent financial measures are needed.

1. Start Cutting Down Your Expenses

By budgeting, it can give you a sense of control over your finances. It lets you set spending priorities, keep track of your expenses and helps you narrow down to what you need to cut back. It establishes a strong strategy that is simple to follow and allows you to plan and prepare ahead.

You could even set a certain percentage or ratio to help you with your money management. For example, 10:20:70. 10% goes to savings, 20% pending bills, and the remaining 70% to your additional spending. 

2. Settle your debt!

You can use your ang pow money to repay mahjong debt to your friends and family that you've collected throughout the holiday CNY period. You should also utilise it to repay further debts such as credit cards or any pending bills.

3. Start investing

Investing is a good way to put your money to work and perhaps increase your wealth. Your money may be able to grow in value if you invest wisely. The power of multiplying and the risk-return balance are the primary reasons behind investing's higher growth potential.

You'll eventually develop a habit of financial independence and discipline by investing early in life. Early investment exposes you to the difference between investing and saving. Investing small amounts of money today will result in more money in the future.

4. Create an emergency fund

An emergency fund allows you to pay unexpected bills without going into debt or relying on others. If you lose your job or anything unexpected happens that requires a large sum of money to be covered, you wouldn’t have to worry.

Many banks and financial gurus advise saving three to six months' pay in an emergency fund.