Money is a big part of our everyday life, and our long-term plans also revolves around money; so how we use or abuse money can go a long way in determining how successful or unsuccessful one can be.
There are certain rules one ought to know and follow when it concerns money and finance.
1. SPEND LESS THAN YOU EARN
This is definitely a must; it’s very unwise to spend as much as you earn or even more, this would lead you to debts upon debts. Even if you command a huge income and spend as much as you earn, you would never be able to master the use and power of money.
2. THINK TWICE BEFORE MAKING A HUGE FINANCIAL OUTLAY
Before you spend a huge amount of money on anything, it’s important to ask yourself certain questions: is it worth it? Do you really need it? Can you really afford it? What impact would it have on your finance?
3. CULTIVATE A SAVINGS CULTURE
Having a savings culture is extremely important, you can hardly achieve anything in life without learning how to save. Save early for retirement rather than wait till you are getting close to retirement, save for emergency (it’s always important), save for investments (having incoming revenues is always worth it). Having a savings culture is a big money rule to live by.
4. INVESTMENT
It’s good to save, but it’s even better to invest. Learn to be an entrepreneur, an investor, a business minded person. Investment and business are the best form of savings; there is nothing better than having a continual flow of revenue.
5. HAVE A PLAN
Always have a budget and financial plan to live by; have goals, objectives and a vision. Even if you fail, it doesn’t mean it’s over, it means there is yet another chance to try again. According to Weitzel: “Most people spend their 20s messing up their money, their 30s trying to figure out what they did wrong, their 40s trying to dig out of the hole, and their 50s trying to catch up for retirement.”
6. BORROW ONLY WHAT YOU CAN PAY
If you must borrow, borrow only what you can pay. Many enter huge debts, borrow money that they can hardly pay and end up living a life circled in debts. Learn to live a debt free life.
7. NEVER LIVE LIKE EVERYONE ELSE
Just because everyone is moving into a bigger house and buying a better car doesn’t mean you should do same. Have a financial plan and live accordingly; when the grass gets greener then only should you do that which you can afford.
8. LEARN TO GIVE
Giving is actually a very good money principle to follow. Many successful entrepreneurs emphasize on giving and it works for them; it’s like giving comes with a mystical power that attracts even better things. Learn to give to charity and those who are in need. If not anything, giving comes with a sense of fulfilment.
There is no easy way to success; if you can’t have a good command of money then you would keep being pushed against the wall by those who do.
Jake