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 address emergencies without breaking the bank, as well as 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.
Don't Spend Every Dime You Earn
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 or investing over spending 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.
Don't Go Into Debt
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.
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.
Generate More Streams of Income
On top of managing the resources you already 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.
A Final Word
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 how clear you are of anything holding you back. You see, it all starts in the mind.
Technically, it starts in the heart but if your mind is not setup to receive these "ideas" if you may, then it may be quite a challenging journey.
Although, this "challenge" might be part of your journey too. Anyways, we'd like to offer something. If you are struggling in financial areas, and if it's something that seems to be happening over and over again, perhaps it's time to try some meditation.
You might have some internal issues that may be blocking you from receiving amazing life changing money handling and income generating tips. If you continue to struggle with handling money, we highly encourage you to find sometime 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.
Soon you will not only master your money handling tips, but other areas of your life as well.