Posted on Sunday 18 March 2018
In this day and age, even being aware of the most basic money management skills will work wonders for your finances.
The perks of managing capital appropriately are well-documented—you feel relaxed, secure, and confident. When you have funds available, you can avoid taking out small loans too often. You can also prepare for the future without worrying about what the economy might hold.
The ability to handle money has never been more imperative. Here are some of the most basic money-handling tips to get you on track for financial success. Also, don't forget to learn about your taxes as well. They literally go hand in hand with making money.
If you make a million and then spend a million, you're still broke.
All too often, people increase their lifestyle expenses as soon as their pay grade increases. They’re making more money, so they figure they must be able to afford some luxuries. However, this mindset hinders them from considerable financial growth.
Whether or not you’ll actually be putting away more money depends entirely on how you handle your extra capital.
If you’re serious about handling money responsibly, you should prioritize saving overspending when you see an increase in your earnings. It’s alright to upgrade your quality of living, but it needs to be done in moderation and on a budget. Splurging is a recipe for financial disaster.
Landing in debt is another common financial trap.
Everyone wants a nice lifestyle, but the finer things of life should be earned, not bought on credit. Swiping your credit card for everything feels great until the bill comes in and you can't pay it. Interest kicks in, and you suddenly owe $500 on a $400 bag. These setbacks can tank financially as well as emotionally. While it's tempting to succumb to all the loan options out there, it's important that you remain cautious. For example, taking a holiday loan for a weekend getaway is a bad idea.
There are, of course, good kinds of debt and bad kinds of debt. Good debt entails investing money in assets or opportunities that will pay you back in the future.
Many successful people handle some amount of good debt. However, the most common trap for people trying to build their capital is bad debt—one-time purchases and luxury goods that don’t increase in value. Credit card trouble is usually a result of bad debt.
Aside from managing the resources you have and staying out of debt, one of the best ways to build your financial success is to open up more streams of income. There are many ways to do this.
You could drive for Lyft or Uber in your free time, rent out spare rooms on Airbnb, or do freelance work on a site like Upwork or Fiverr. You could open up a store online, or learn how to invest in the stock market. Engage your imagination and use what resources you already have, and the possibilities are limitless.
Once again, make sure you are keeping your finances in order especially when it comes to paying your taxes, etc.
One unorthodox way to get the hang of things is meditation. If you are struggling in financial areas, and if it's something that seems to be happening over and over again, you can try to practice meditation.
You may have some internal issues that may be blocking you from receiving life-changing and income-generating tips. If you continue to struggle with handling money, you should find some time out of your day to sit somewhere and just let things "come up".
You may or may not get an answer right away but the more you do it (meditate), the more clarity you'll achieve. Watch out though, the deeper you go, the more 'intense' feelings you might have to face. However, if you stay with them long enough, the clarity you will achieve will be life-changing.
While we could make an endless list of money-handling tips, what we’ve outlined here—not spending every earned dime, abstaining from debt, and generating more streams of income—are the three primary tips for achieving financial success.
Although it can be challenging to make these changes, as you build the habit, it will become easier. Success ultimately depends on your level of discipline, wisdom, and execution. Also, steer clear of anything holding you back. Soon, you will not only master these money handling tips but other areas of your life as well.