Patricia Sanders has contributed a guest post all about how to unlock the art of managing money. Enjoy!
Let's say it in one line, money is the problem child. We always have issues with this particular object in our life. Nevertheless, it is what we need, to survive and to live. It brings a sense of satisfaction when we have enough money to spend the way we want. So where is the nuisance? It is in managing money.
We must, from the beginning of our earning career, start practicing few habits that will help us with proper personal financing. We feel a wild urge to overspend when we receive our turn of money after every payday. But it is always best to control that rush and hold onto the norms of proper money management. It is for your security and betterment of a prosperous future.
We will be pointing out the 6 fundamental concepts of money management, so that it comes beneficial for you and the family.
1. Never let go of yourself:
Start meditating, shall we say? No.
Have a firm grip on your expenditures. Make a reputation that will be highly honored. Variantly, there are no limits for humans. You on the other hand, must set down your own boundaries of expense.
Think over and over about your needs and necessities. Letting yourself completely dependent on those shiney credit cards will do you no good. You will end up bouncing down your credit scores and fall prey to negative image in the eyes of creditors/lenders.
2. Give a proper shape to your living:
The best way to manage money is to manage yourself. Start the dividing policy now itself. Choose priorities. Divide your expenses according to your needs.
The envelope budgeting system is said to be pretty accurate in handing out cash. Make separate funds for your basic needs like, groceries, daily products that include soaps, shampoos; and bills.
Always be consistent with this funding strategy. First keep aside this said amount and then carry on with your other personal expenses.
3. It’s always good to be subtle:
No one charges you to doubt or think. Figure out things first, before you act. Suppose you are in the electronics sales corner; don't speed up things. Judge every products as per your need. I always point out the word ‘needs’ because the basic rule to wealth management is understanding ‘needs’ instead of ‘wants’.
Always keep in mind, once you have paid, it’s very hard to get it back into your pocket. Never forget to maintain the fine line of subtlety before buying objects. If anyone accuses you of being judgemental, never mind. It is you who understands yourself and your money more than anyone else.
4. Plan suitable investments:
Only having knowledge in good expenditure management won't do these days. You must learn how to do prominent investments. We have so many options to choose from. If you are fluent with numbers, permutation, probability, then don't wait, readily go for stock market investments.
If you are the one who wants to play safe, then depositing sums in a bank account might be your go. Open multiple accounts and break your gross savings for better interest benefits.
Mutual funds and bonds are also valuable if you consider and believe in unity finance.
5. Articles that never get old but only become gold:
This is usually not recommended, as collectibles are associated with memories and emotions.
No one loves to give away old music vinyls of Marley, Bowie, Floyd, Beatles or anything as such. If you have repeater clocks, 200 years old porcelain China vase, vintage edition cars or any of such antiques, then they will be worth more with time.
When you are really running out of cash to make important decisions, and have any of those collectibles left, then you may sell them at high price.
6. Last but not the least, save energy:
It is always better to be energy efficient. Saving energy will help you a lot with bills. Cut down the unnecessary usage. This is a group initiative and must be followed by all the members of your family. It will reduce a lot of your bills and you will be left with more savings.
Walk to save gas. Barely anyone keeps a track of their own private automobile expenses. Reduce this cost. In times of slow hours, avail public transport to save more.
Hope this has been a sensible read for you. From now on measure every step you take; that's the only way to proper money management.