A comfortable and prosperous life in the near future I believe is everybody’s concern. Thus, it is important that we are knowledgeable enough to handle our money wisely. Here are very simple guide on how to manage your finances:
1. Avoid instant grafication
It certainly is human nature that we appreciate nice, beautiful things around us. And today’s generation has all sorts of stuff from the minute things up to the biggest ones. We fancy the latest gadgets, posh places, luxury cars and everything under the sun. Then we start craving on them and will never put off until sought. Nothing is wrong with that. You work hard, even harder to earn and have it. However, something is wrong if you got an item the moment you want it, on credit! I tell you to practice the art of self-control, the art of delaying gratification. If you really are dying to have it, then learn to save for it. Once purchasing on credit becomes your habit, the tendency would be that you will have a hard time paying for it. Worse, you can be paying for those items in ten years!
2. Go over & reconsider your expenses
Make a list of all your expenses and go over it. If your cash flow shows that your income cannot cover all your expenses, then it is time to cut back. Sort it out. Only those necessary expenses shall remain. For instance, if you are a frequent customer on expensive restaurants or a patron of a famous coffee shop then I guess the best way is to limit your visits to at least twice a month. In this manner, you do away with so much spending. And lesser expenses mean more savings.
3. Time value of money
Would you like having a larger amount of asset in the future? Then come to realize the value of money over time. This is simple analogy but its impact is huge that will change the quality of your life and your family in the next years to come. To appreciate your money’s worth over time means to begin saving and investing right now. The earlier you start on your investment will mean ample time for your assets to grow and multiply. If you think you are earning a much higher income as compared to your colleagues, do not let yourself fall on the trap of bragging it by impulsively buying luxury cars or houses right away. Be wise enough to sort things out and weigh the consequences. Remember these are assets that depreciate over time because of usage, wear and tear and obsolescence.So I suggest you look for much better investments.
Just as time, money is a valuable resource. And it can certainly work for your good, if you only know how to make the most out of it. Save and invest. These ways are so simple yet an effective avenue for you to learn the value of patience, perseverance and discipline which will become the reasons for your huge success very soon.