5 Small Changes You Can Make to Manage Your Finances Better
>> 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 PeopleThink", 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 ofGreatness", 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.
Spend wisely
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.
Author Biography:
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
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