Money management is a skill that every parent, teacher and caregiver must imbue into the bloodstream of their wards. The world runs on money, and you have to have the basic knowledge of managing money if you are to brave the harsh realities of life. Philosophy and morals sound good as long as you get to write elaborate academic papers out of them. However, reality works on a different principle. You cannot survive without the support of a decent bank balance that promises to fuel your present and secure your future, come what may. Money management is no less than art. It requires patience, practices and a wee bit of skilful decision making. The article here shall look into all the brilliant ways in which you can manage money, save money and put your money to good use.
Budget It Right:
It all starts with a neat budget plan. We do not have access to the magic pot at the other side of the rainbow, and therefore, we are all ruled by a budget constraint. Even the world’s richest person is susceptible to bankruptcy if the expenses and investments are not carefully planned. Therefore, start budgeting as early in life as possible and stick to it. There might be several instances where you would want to push your budget limits in a bid to buy that dress you always wanted to, or take the cab to work over public transport. You might even give in to the temptations. But remember that several failures make way for a glorious victory; and once you ease into your budget, life will only get better. There are even several budgeting apps and websites available that can help you make this task easy. You could, for instance, take some great pointers on managing money from Crediful.
Keep A Ledger:
Yes, your bank accounts and passbooks have a record of every substantial transaction. You can always look them up and check for most of your expenses. But what about those smaller expenses that often go unnoticed, at the second-hand book shop or the ice cream parlour? No one really cares about these because they do not burn your pockets down to ashes. However, this is exactly where people go wrong. Every penny counts, and it is your responsibility to keep each of these expenses logged in. At the end of the month, when you are left wondering about where you spent all your money, the record of these small expenditures can come in real handy. It shall help you put two and two together and alert you as to where exactly you must pull the reins.
Be Aware and Responsible:
You work hard to earn every dime. Some of you might even slog at a job you are enormously disinterested about. But that is the way of life. Therefore, you need to make a promise to yourself that you shall be aware of all your purchases and investments. You have a responsibility to yourself. Read the labels of products and ask yourself if the product is worth your money and time. Read the price tags and other details so that you know what you are paying for and how much you ought to pay. Not everyone in this world is nice, and most of them will only want to fleece you. Therefore, pay only what is supposed to be paid. Do not sleep on your hard-earned money and investments. Keep a tab on how much you are making every month and gauge every aspect before making an investment. Check for the return on your investments. That is how you can be enlightened and responsible.
Learn About Healthy Investments:
There are innumerable ways to put that money of yours into good use. You just have to stop procrastinating and dig around a little bit to find information about these investment ideas. For instance, you can invest in the stock market. It is an extremely volatile domain and does not promise a steady return on your investment. But the right education (and I do not imply the ones where you get a degree or two) and calculated risks can help you navigate through the uncertainties. You must also invest in health insurance and life insurance plans. These are the safest ways to secure the health and life of your family and yourself. You cannot just survive on daydreams of getting rich and hope to make it big in life. The influential and wealthy people dreamt big, but also made sure that they used their brains to materialise those dreams. Even if making a colossal figure every month isn’t exactly on your mind (because some of us want a decent living), you cannot compromise with the lives and health of your loved ones. Thus, think of insurance policies as mandates and go for the best ones.
Make Saving Money a Routine- With or Without a Partner:
Couples have some exciting ways to bond over and share their lives together. Maybe, make saving money a routine over which you and your partner could bond over. Plan for retirement, your children’s education (that is if you want children), asset building together and get to saving money from early on. All these savings shall cushion you and your partner against the rough weathers together.
However, this does not mean that saving should be a routine meant only for couples. Not everyone wants to share their lives with another person. But that does not give you a permit to not commit to saving. Save up for yourself, or your parent, or your children (if you are a single parent). Saving is inclusive, and it is supremely important that you make it a part of your life. You need to make it a vital life force, just like breathing and eating. It shall all bode well for you in times of economic crisis.
Money management is an umbrella term. It includes being aware of your investments and purchases, saving the right way and keeping a tab on all your expenses. It means having a vision that shall keep your life functioning in times of adversity. Sadly, not every educational institution teaches this essential life skill to its students, and guardians too, do not take imparting this knowledge as seriously as science or grammar. However, it is never too late. You can always start from where you are and emerge as an efficient money manager.