>> Mar 28, 2016
Having the money to buy everything you'd ever want is truly a dream come true. While it may not be applicable to everyone, it's certainly a dream universal enough in that a large chunk of people agree with it. Being able to buy luxurious things such as sports cars, extravagant foods, and beautiful residential condominiums in Quezon city are very few examples of what one could do with their money.
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However angle you look at it though, the aforementioned dream seems rather impossible for the masses. Having enough to live on comfortably is difficult enough, but possessing additional funds for unnecessary luxuries is even more so. Don't fret though, because there are changes you (or anyone) can make in order to better manage their finances and ultimately allow themselves to reach the point wherein they can purchase whatever it is that they need.
Here are 5 small changes you can make today to manage your finances better!
Pay yourself first
It may seem more logical to pay for expenses and spend first then just save what's left, but in actuality, saving first and spending later is the more efficient route. According to George S. Clason's finance classic "The Richest Man in Bablyon", allow yourself to set aside at least 10% of what you earn. (Any amount will do, so long as you believe it to be fair to you.) Do not allow your expenses to dictate your savings, but rather, let your savings govern your expenses. Whatever you have left after setting aside your "self-payment" should be the only amount you can spend; adjust your costs accordingly. You'll be stockpiling assets before you know it!
Live below your means
Ashley Fieglein Johnson, the chief financial officer of an online investing platform called Wealthfront, advocates that people should do their best to live below their means - in other words, spending less than what one earns. Employing this method of saving will allow you to very quickly accumulate extra funds, thus further allowing you to invest in other potential opportunities (that may sometimes be risky) and never fear irreversible losses due to having savings to fall back on. There's nothing wrong with living frugally, after all, and at the end of day having more money to your name is a great payoff for it.
Make your money work for you
The author of the successful book "How Rich People Think", Steve Siebold, advices everyone to invest. There is no one magic investment that's sure to bring in load of money, and the situation is different for each person, but it all boils down to one principle in the end: "You invest one dollar and get ten in return." Best of all, investing usually doesn't involve a lot of hard work. You could pour your money into something, wait a bit, and watch your initial capital grow right before your very eyes.
Invest in yourself
Lewis Howes, the author of "The School of Greatness", did exactly just that. While investing in other businesses or ventures is alright, investing in one's self is something most people take for granted. And they shouldn't, and you because you as a person are your main selling point. Teaching yourself new skills or learning new knowledge never hurt anyone, and it certainly wouldn't hurt you or your capacity to work better.
The universal rule of financing: don't buy what you don't need. Save what you can and build up for something that's worth more later on. There's no sense in pouring funds into something you won't ever use, so don't do it. Losing money without doing it deliberately is easy enough!
In the end, it's all about making your money go where it needs to. And whether it's stashed safely in the bank, invested in a venture, or right in your hands, what you do with it will ultimately dictate how you can live your life, so spend wisely and save greatly.
Kimberly Marie Gayeta (Kimmy)is a Communications Degree holder, passionate writer, currently working as a local Public Relations Officerand an online Marketing Representative.
Thoroughly fascinated about travelling, leisure, and living the good life!
Follow her on twitter: @kimmygayeta