When it comes to managing money, you need to understand that you don’t have to be a math genius to fully manage your money well. It’s just the basic arithmetic that has to do with addition and subtraction.
Aside the aspect of knowing your maths, there are other financial skills to possess to help you take care of your finances well.
Skills like making the right decisions on some investments and other projects to sponsor as a business person.
To manage your money properly, there are 8 simple ways to go about that.
1. Have a planned Budget
When you get your money, it could be your salary or your profit from your business, you need to have the mentality of not spending all that you earn and to do that, one if the ways is to have a budget of the amount you are going to spend for that period of time.
This will guide you in making decisions about your expenditure and also help you curb your expenses.
2. Utilize your budget
You shouldn’t just have a budget, you are meant to use it. There is no use having a budget and not using it, if you do that then your budget is of no use then.
It’s not only about having a budget at the beginning, you need to update it as new and important expenses come around.
You also need to take note of your spendings and also update your budget as you make those expenses.
3. Ensure you have a minimum amount for unbudgeted expenses
As a business person, you definitely are aware of the term net income which is just the leftover after you have deducted your expenses from your gross income.
The net income can then be used for other miscellaneous expenditure but also you shouldn’t be reckless with it because a portion of it should also go into savings among other things.
4. Monitor your expenses
As a business person, you need to be careful about how you spend your money because if you don’t track it there is a high chance you may end up spending up your money.
This is integral to do because when you monitor you expenses you will be able to discover some of the channels that actually costs you more money that you should be spending and other areas that you don’t actually need to invest your money in.
5. Don’t commit to any repeating monthly charge
Just because the money you have can afford you a loan doesn’t mean you should go for it, you first need to weigh the cost and check if it’s necessary to do it.
The bank in which you want to loan from only knows about your financial status as regards what you provide to them, they are not aware of any other financial obligation that could lead to loss of money for you.
Therefore, it’s something you need to think about well before venturing into.
6. Ensure you are paying the optimal prices for goods and services
Don’t just pay for goods are the prices given not only because you can’t afford it but because you need to save up some money from it.
Try different places where the same products are being sold or services are being rendered and get the best price for that product or service but also ensure it’s the best in terms of quality.
7. Engage the habit of saving regularly
If you want to manage your money well, a good advice to take is to save regularly.
If you get money on a daily basis ensure you take a portion of it and save it. Do not save what is left after spending instead spend what is left after saving.
You can have a fixed or variable percentage amount to save every time you get money or not but either ways don’t use all your 10 fingers to eat. Set aside some for savings.
8. Be an investor
One other brilliant way to manage your money is to engage in investment opportunities. This way you won’t have to be think about saving too much especially if you are not good with savings .
You also need to realise that investing is more profitable than saving. When you save, your money remains dormant unless you add more to it but when you invest, your money is being used for transactions and you get your interest in addition to your initial investment.
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