How you Manage your Money ?
Manage your money is the one thing in the world which has a lot of importance in itself. What do you think how a person becomes billionaire? By Luck? or By Super Natural Powers??? The only answer to this is : He managed his earnings properly and invested it somewhere else and the cycle got repeated. If you want to become a billionaire or want anything in life that you desire you have to learn how to Manage your Money in a better way.
Money has its own value in our lives and it varies from person to person. And when we sees around us, one big challenge that 70 % of the people face difficulty is “how to manage our money wisely”.
To analyses this fact, there was a research conducted on people around the world to find out people of which part of the world can mange their money effectively. So a questionnaire was prepared comprises of three money-related questions. According to that report, results were strange
96 % Russian population didn’t give correct answers to all the three questions
30 % American give correct answers to these question
50 % Swedes gave correct answers
Germans with 53 % were the best performing population
So the results that ideally showed that we are not good enough to manage our money.
We all have much tendency to earn money but according to research, approximately 70 % of people fail in the discipline to manage their money. So today I will tell you 3 best ways to manage our money. These 3 ways are correlated to each other; the accomplishment of one is the compliment for the remaining two.
So without wasting your time, I will directly come to the point. So the very basic fundamental way to start managing our money is:
Awareness is the accountability for all the resources through which money is coming or going from your pocket. And most of the people don’t want to be aware because it’s our human psychology that we don’t want to put our efforts to do those things which will not give us benefit directly.
A simple example is awareness of our wallet. How many of you know that how much money is there in your wallet?
Hope 10 % have the answers for this. And it’s true, we are human. We want to be comfortable.
And the second thing is ignorance. In our daily routine, we ignore the small amount of money which is caused by odd things. So, we have to leave our bad habit to devalue small-small amount of money. Most of the time we ignore the things which cost us small amount of money and we can get it back after discussing and putting your head into it. But we just ignore it by saying “let it be why I should take so many headaches for that small amount”. So we have to be more accountable for our money. And we should be aware and up to date for which thing I am spending my money. I also want to discuss our basic daily avenues where I think 70 % of the people lose their money but they ignore it. And it is obvious, If 5 bucks are going from 10,000 bucks accounts it is only 0.0005 which we don’t care.
Auto-renewal on telephone-services on your SIM card etc.
And there are many more sources where we don’t care for the small amount of money and they are not so sophisticated people who will come to your place and tell you that we have claimed more than what you actually owe. You should be aware to the market trend, your investments, So it’s not the matter of small money that would make you rich person but this accountability will help to manage our money to a great extent. And its human psychology that if something is going from your pocket with your knowledge it lets you think about it. So be aware of everything or try to increase your aura of awareness to at least major things and try to reach that level where anything going in/out should go through you in your knowledge. And the time, you are in that cycle you are automatically in the cycle to manage it smartly.
The second step comes after awareness is control. How to Control your money?
If I go to the definition of control is “a person or thing used as a standard of comparison for checking the results of a survey or experiment.” Knowing the sources and venues of money we can process toward control. Control is nothing but an understanding the venue where we are spending our money.
Our output is matching to input?
Are we paying more for something?
When you will start judging these things, the controlling automatically start. Controlling is inversely proportional to spending. And this is obvious fact that when you will be able to evaluate the outcomes that you will get after spending that much amount of money. You can avoid those spending which is not giving you expected outcomes. Try to put hard cash in your wallet and try to spend money from your hard cash in place of digital money(Credit card, Debit card, Money Transfer Apps). And it is psychological fact that we are more accountable for the hard cash compares to digital currency. So the second tips to manage is control your expanses.
Now the third stage to manage your money is the expansion. How the expansion will take place.
We all have a perception that the money can only grow when it is invested in a portfolio which is in the growth cycle. It is true but not 100 %. If you are able to manage these two things properly in your lifestyle. We all think that money management is investment resources. We have to find out the avenues of investments. After finding avenues we have to evaluate investments plans which suit to our income cycle.
And there is universal principal of accounting
Receive the payment as earliest and return the payment as late you can.
This will help to increase the availability of fund to you or your organization and you will manage money effectively.
So these are the 3 best ways to manage your money. You can read the article