How to Manage your Money Effectively
"If it is not planned for, it is not paid for" - Sir Seyi"
There are a thousand written ways of managing your finances. we all have fallen victim of the EFFECTS OF FINANCIAL MISMANAGEMENT one way or the other. The curiosity for a solution and finding a solution makes you enlightened on the subject matter, and also makes you a ready solution to others who are trapped already looking for simple but effective solution to those who are afraid of making the same mistakes. You are a solution! A ready solution. Enjoy!
Quickly,these are the 8 Top tips to avoid unreasonable spending. ENJOY!
1. Decease from Over-Hyped Products
What? I can hear a gasp of surprise? Don't buy what? Even when I need it?(No! Buy). We humans are emotional beings. We makes most of our spending decisions based on our perception of the product that's why PACKAGING IS IMPORTANT. You should also remember that, your emotions should not take control of your decisions. Have you ever heard someone say or perhaps you have experienced it that if you're not careful, you'll spend beyond what you budgeted before leaving the house at the market? Funny enough, you may not even buy what made you postpone washing the dishes. That's who we are. Don't blame yourself. You don't have to. We're all emotional. And for us to get it clear, we need to know how to GET RID OF EMOTIONS in making our financial decisions. Though a times, these products are relatively cheap, and since we are all moved by feelings, we even go to the extreme of over-buying with the fear that it will soon go out of stock or because of the limited time tag placed on it. I'm not stating that these products are not good or that they are sort of fake and that you shouldn't go for them. No! What I'm saying is, Except it is beneficial (not all things are) and there is the possibility of it inflating within the shortest period of time, for go it! Don't get all emotional. Follow your heart but take your brain with you. Set the clear difference BETWEEN NEED AND WANT. Know your limit. Know when to stop.
TIP:
Know what you want and go for it. Nothing else appeals.
*Sometimes, cheap products aren't always the Best products. Go for Gold.
2. Have a Plan:
Actually, this should come first but....let's proceed. A Plan-less financial life has no future. It will not see the sunset because it must have been buried before noon. HAVING A FINANCIAL PLAN puts your expenses on check. Having a financial plan keeps you from the Dilemma of not knowing what to spend money on(may be you should ask me, I'll give you loads) or like a singer sang "too much money, don't know how to spend it,plenty dollar" ...though he later said that " maga don pay" meaning "the fool has. That's actually the price you pay for ignorance. I
If you have NO plan for spending money, you'll spend it on everything as long as it's a YES (ability to pay and as long as it appeals to the emotions). Set your boundaries, Set your limits, Set the Stops. Why are you so easily parted with money, not because money doesn't come(though,may be not as you expect), sometimes even more than expected, Its because you have no plan where it will go when it arrives your door step. I won't be the first person to tell you that Planning to fail is all because you chose not to have a plan which did not even fail. It is in your plan that expenses like debts are stated(Read More: Having a Financial Plan) and are sorted out. Use my golden rule.
TIP:
"
If it is not planned for, it is not paid for" - Sir Seyi
NB: Except for Contingencies
3.
Decrease liabilities-
Liabilities don't pay off in the long run. Liability is anything that takes value from you. Money is value, longevity is value, durability is value, your happiness and rest if mind is value. Anything that looses value is a liability. Anything that takes value is a liability. Anybody who adds no value to you is a .... Liabilities come in different shapes and sizes. While Some liabilities are Periodic takers(sipping your cash in bits), Most are Perpetual financial drainers and until you stop(using them), they won't stop (using you and your finance). Liabilities are financial leaks, and before you can put your money under control, you have to stop the leaks. Liabilities mean different things to different people as I cannot state categorically examples of liability because by use, liability to Mr.A could be an Asset to Mr.B . Take this too,Anything with no promise of a better life is a liability.
TIPS:
" If it is not reliable, it is not liable"-Sir Seyi
"Always keep track of what you get and spend"
"$tick all the receipts for the day in your pocket and enter them in your computer each night. Doing this consistently over period of time will change your spending habit drastically but if you can't, use a note but be dutiful"