7 Great Ideas How to be Better with Your Money

Hello everyone, I am happy to welcome you to my newest blog post. Today’s topic is a pressing one in our world today. We see people make money and returning to square one and starting all over again. We’ve even heard stories of people who went from extreme affluence to abject poverty and you can’t help but wonder why and how this happens. So, I have decided to share this topic with you today because I don’t want you to end up like those people.

Have you really wondered why rich people sometimes go broke? Why does it seem like huge amounts of money seem to disappear into thin air without any obvious expenditure, like when you make money but cannot seem to account for how it was spent?

I will be sharing some tips with you that can help you better manage your money. Financial stability is something that everybody dreams of, but only a few achieve. Some people feel that they must be earning several million before they can establish financial stability, but that is very far from the truth. No matter how small you earn, you can learn how to be better with your money and that is what I will be showing you today.

How to be Better with your Money

Understand your Money Flow

For income, calculate all the money that comes into your purse monthly. Then check your expenses and see how you spend money in a typical month. You might need to keep a journal where you record each amount that comes into your life and each amount that goes out. Treat it just as large organizations treat their balance sheet. In case you are asking if this is necessary, ask yourself why an accounting department is such an important department of any functional organisation.

Make adjustments

But if you subtract your expenses from your income and you still have some left, then make concrete plans to either save or invest this remnant rather than wasting it just because it is there.

Decide on your priorities

While needs are things we can’t do without, wants are things we can forgo because they are not very pressing. However, the irony is that people just combine their needs and wants into one massive bunch and make a mess of it. Start by deciding what your priorities are.

Create a budget

Every month, create a budget and stick with it. Allocate percentages to every aspect of your expenditure. Decide the percentage that goes to food, self-development, savings, investments, emergency and so on.

When you create a budget and you stick with it, you will start experiencing balance because you will hardly run out of cash since you have it planned out from the onset. You will not just walk into a store and purchase an item simply because it caught your fancy. It is unplanned purchases like this that kill money faster.

Have an emergency saving

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Set Saving Goals and Make Saving Automatic

You can make the saving automatic by having an arrangement with your bank to transfer a certain amount of your income to your saving account at a predetermined time.

Invest Wisely

If you choose to invest, understand that every investment has some form of risk attached to it. This is why you must only go for low-risk investment opportunities. Take time to study and understand whatever it is you want to put in your hard-earned money. Investment publicity can attract you and family and friends will tell you how amazing the investment opportunity is. Don’t be carried away. Remember, your money, your rules!

Let me also add that while you are looking for an investment to make, please, by all means, do not fall for the get-rich-quick schemes. Understand that if those things were real, everybody would be a millionaire.

Conclusion

© Lifestyle Tips by Antoaneta

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