Money management is tricky subject. We all worry about future. If you know that you have enough money to pay what you want in present or in future, give you sense of secure future. A good money management habit can save you from the hurdle of life which may come life.
A lot of people say that money is the root cause of all the crime happening out there or in other word money is the root cause of all the problems. But, In my view, money is the solution of all the problems. Think about it, and you will get to know it.
Here are some money management tips that can help you to get financial freedom
1. Make list of your monthly expences
We all have monthly expenses which has to be fulfill. Actually, it include our daily need like food, transportation, internet bill, cable bill etc. Sometime we spend too much open the things which we actually don’t need in life because we don’t have a cap on monthly expenses. So, make a list on first day of month and spend according to that.
2. Cut Unnecessary cost
Write down everything and cut things which you don’t need. There is a saying “If you buy which you don’t need now. You have to sell what you will need in future”. I can give an example, I purchased two musical instruments but I never used them because I don’t have any interest in music. It was unnecessary cost to me. Stick to what you need.
3. Pay Your Loan first
Living with less money is bad but living in debt is worst. So, try to pay you loans/debts as early as possible. Live below your means but pay you debts first. If you have more than one loan or multiple loan than start paying smallest loan first. It will you give you some relief.
4. Start Saving
Start save money as early as possible. Always distribute your monthly income in three parts 1. part one is for saving 2. part two for investment and 3. part three for your expenses. Do not touch your saving part as long as you don’t need money on urgent basis.
5. Start Investing
Money can earn for you if you invest intelligently. Question is where to invest? You can invest in real estate or stock market. Even, you can invest in some small business like shop, start ups etc. The second part of your monthly income should have to be invest. Or I can say, you should first invest every month. And, invest atleast 25% of your income.
Bottom line
Take an expert advice in investing.
MONEY MATTER 