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I graduated with a degree in Computer Science. I’m supposed to be coding and doing such after graduation yet an opportunity in the academe opened that I grabbed. Since then, more than coding and software development, I chose to teach students how to code and how to develop software.
KISS – Keep it Simple Stupid
If there is one principle I clearly remember, it would have
to be KISS. Not only is this very simple to memorize, it is also applicable to
almost anything in life. The concept of KISS in line with software development
according to David Hooker is:
“Software design is not a haphazard process. There are many
factors to consider in any design effort. All design should be as simple as
possible, but no simpler. This facilitates having a more easily understood, and
easily maintained system. This is not to say that features, even internal
features, should be discarded in the name of simplicity. Indeed, the more
elegant designs are usually the more simple ones. Simple also does not mean
"quick and dirty." In fact, it often takes a lot of thought and work
over multiple iterations to simplify. The payoff is software that is more
maintainable and less error-prone.”
So how is KISS applicable to personal finance? We keep
everything as simple as we can. As much as possible we throw away or delete
stuffs that can complicate our finance loves. For instance, the more credit
cards you have, the harder it would be to keep up. The more stocks you have in
your portfolio, the less attention you would be able to give each one. You
might even miss a big opportunity. The more bills you life has, the more
expenses that would entail. Hence, it would be best to simplify.
YAGNI – You Ain’t Gonna Need It
According to Chris Peters, in software development term,
YAGNI is:
“It basically translates to: If it's not in the concept,
it's not in the code. For example, it's a common practice to abstract the
database access in a layer that handles the differences between various
drivers, like MySQL, PostgreSQL and Oracle. If you're working on a corporate
website that is hosted on a LAMP stack, on a shared host, how likely is it that
they will change the database? Remember that the concept was written with
budget in mind. YAGNI strives for simplicity by not implementing it at all.”
I know that’s a bunch of jargons in one paragraph however we
link this one to personal finance. This could mean not buying an item that can
add to your financial burden. If you have plans to buy something, this would be
a good mantra to abide. There are expenses that are considered wants rather
than needs. And as much as possible, we should be able to filter our expenses
to our needs so we can be able to maximize the use of our money. Most of us
tend to spend a lot on our wants rather than our needs. More so, those wants
are the things we don’t need at all.
Be Open to the Future
David Hooker has one good explanation with this principle in
line with software development:
"A system with a long lifetime has more value. In
today's computing environments, where specifications change on a moment's
notice and hardware platforms are obsolete when just a few months old, software
lifetimes are typically measured in months instead of years. However, true
"industrial-strength" software systems must endure far longer. To do
this successfully, these systems must be ready to adapt to these and other
changes. Systems that do this successfully are those that have been designed
this way from the start. Never design yourself into a corner. Always ask
"what if ", and prepare for all possible answers by creating systems
that solve the general problem, not just the specific one. This could very
possibly lead to the reuse of an entire system."
We must also ask the varied what ifs in life. What if we won’t
have a job tomorrow? Will we still be able to survive? What if I die, who would
take care of my family’s expenses? Being able to answer these what ifs will
help us prepare ourselves on the things we need to do now. We must anticipate
the future and the unfortunate circumstances. Hence, we need to get insurance
for estate planning and the future. We must save up for retirement. We must
build our emergency fund and more. Let us indeed be open to the future.
I know these are software development principles but it
would be good to look at it in the perspective of finance. No wonder that more
than developing software, we must also be able to develop ourselves and our money.
More often, such principle is but just and apt to us.
P.S. My very first e-book is finally here. You can buy it using the Buy Now button at the right or via bank deposit. Only Php 150.00. Purchase your copy now.
P.P.S To those doing the 52 Week Money Challenge, it is Week 6 already! Did you deposit the next amount yet?
P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.
P.P.P.P.S I am also sharing my stock market secrets and information via these resources.
P.S. My very first e-book is finally here. You can buy it using the Buy Now button at the right or via bank deposit. Only Php 150.00. Purchase your copy now.
P.P.S To those doing the 52 Week Money Challenge, it is Week 6 already! Did you deposit the next amount yet?
P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.
P.P.P.P.S I am also sharing my stock market secrets and information via these resources.