3) Avoid bad debtsīad debts are frivolous debts that are high in interest and do not bring you any returns, such as credit card debts. Make a short- or long-term plan for this savings – such as deposit for a car, down payment for a house, wedding fund, or retirement fund. Take about 10% of your monthly income and deposit this into a separate bank account for savings.ĭo not touch this savings unless it is an emergency. 2) Pay yourself firstĪlways pay yourself first when you get paid so you’ll have to adjust your budget according to the remaining 90% of your income. So, make sure you always spend within your means. It can be extremely painful to find that extra money to pay for the overspent amount.
Try overspending for one or two months as a challenge, and you’ll know how difficult it is to make it back to black. If what you spend is less that what you earn, then you’re in the safe zone. We all know this is the most basic part of money management. Here are 5 golden rules of money management: 1) Spend less than you earn
Money management is not that difficult, it just needs consistency. Thus, we tend to avoid it until something serious happened and we have no choice but to face it.ĭon’t wait till your money spirals out of your control. For some of us, money management seems scary, complex and complicated.
0 kommentar(er)
