- Personal Finance
How to spend your money wisely and live simply
Be your own money manager . . . way to go now!
"It all comes down to this: if your subconscious 'financial blueprint' is not “set’ for success, nothing you learn, nothing you know, and nothing you do will make much of a difference."-T. Harv Eker
In today's world, rising prices of goods and services is a natural phenomenon. And the trend is for prices to go higher every year. Yet, this is also the best time to be your own money manager.
Such economic reality of rising prices is definitely not easy on the pocket but it should not also be taken very lightly nor the situation be perceived as very depressing. Individuals, households and entities geared to face the challenges head on and are able to deal with them smartly will definitely find themselves in a more advantageous position.Managing your own money or your family's finances is a serious business. Thus, you have to do it now because if you don't, you may suffer the possible grave consequences later. Your future and the well being of your family may be put at risk by stalling. The good news is you don't need to hire any external money manager to manage your personal finance because with some genuine interest to study and practice you can do it better on your own.
Given a level of income that does not go beyond (or at least match) the increase in prices, becoming a money manager can become real tough to anyone. But, yes, this situation should make us strive even better to be our own money manager. Therefore, money management is a must; that is, if we intend to attain and live a lifestyle of peace, freedom, wellness and abundance, if not now, at least, sooner.
"Never spend your money before you have it."-Thomas Jefferson
To be a money manager does not need to be that complicated . It just needs sincere and simple intentions, the right knowledge and sheer determination. As a starter, here are some easy and practical pointers to help you manage you money:
· Make a budget and plan well in advance.
Try to budget your money in advance. A money manager makes a plan first before spending . There are instances when you spend your money without even thinking whether or not that it is the right time to have it. It also advisable to buy items at the end of the season, prices at this time of the year are low and cheap.
Have you heard of the 10-10-10-70 percent rule? Well, this is only a suggestion and if you have another formula that may work better for you, then adopt it. What is important is that you apply a specific and quantifiable formula.
Only for those who believe in tithing, this is the best time to practice and put into action your faith. Set aside the first ten percent of your income and give it to your church or from whoever you get your spiritual nourishment. Remember that this is done in thanksgiving, acknowledging that every penny and all blessings came from a power higher than us and whose generosity we cannot outdo. For those who will generously give, more will be given.
Then, set aside another ten percent for yourself or for your family's emergency needs. Another ten percent is advised to be put into wise investment, that is, into something that will earn the best return for your money in the long term, such as, mutual funds or stock investments, etc.. But you have to study thoroughly well and be careful in making your investments. This is going to be your retirement fund. Handle it with care and love.
Determine the things that are important to you. Identify the items that you need and the items that you want to have. Always remember that you should only buy things that are important and needed in your lifestyle.
· Make a list and stick to it
Make a list of the things that you want to buy and be sure that the items that you are buying are good enough to sustain your basic needs. You have to be satisfied with the things that you have now, and for as long as you find it still useful and can suit your needs.
· Live simply and spend wisely
Be smart by being generous while staying on course. Make sure that you spend your money only on basic needs like food, transportation, shelter, and clothing. These basic needs are worth spending for because these are important for your health and security. They are the things that you cannot live without and should be allotted in your budget.
· Avoid wastes
You may avoid unwanted purchases by trying the item first before buying it. This is to make sure that the item is worthy enough to acquire. There are instances when you tend to buy things without even figuring out fully well their effectiveness and quality. You have to keep in mind that you always need to spend your money wisely on items that have quality and are according to your budget.
· Steer clear of impulse buying but be alert for good bargain sales
You may compare items on their prices. Do not limit your options to just one store only. You may find the best item that can be useful and affordable to you by window-shopping first rather than buying by impulse. Many stores out there carry the same items and can offer lower prices.
· Conserve electricity
You can save more money in your household by conserving electricity. Be sure to turn off appliances that are not in use. You may monitor and compare your monthly electric bills regularly to check if you are maintaining your desired bill.
· Plan your travels
You can save on your transportation by traveling wisely. It is suggested that you organize well your itinerary to help you remember your destinations to maximize your travel time and to minimize costs. Being organized will help you tremendously to become the money saving expert that you want to be.
· Enjoy a smart saving lifestyle
Psychologists say that any habit is usually acquired successfully by doing it consistently and continuously for at least 21 days. Three weeks of constant and conscious practice seem short a time to get the hang of it and to become a truly money saving expert. And what seems to be more challenging is sustaining such good practice for the long haul and to enjoy the reward big time.
Surely, just like in any ordinary endeavors in life, expect various ordeals to come along the way. Yet, the key to success is to make smart saving your lifestyle and learning to overcome hurdles. And once it becomes a second nature to you, people will surely notice the joy and peace that will emanate from your simple lifestyle. Then, with much confidence, you can share with them your newly acquired money saving expert knowledge and genuine prosperity tips.
And if you have some outstanding debts, make room to pay them, too.
Feel free to add your own tips on how to become an effective money manager to the above list.
“If you would be wealthy, think of saving as well as getting.”
- Benjamin Franklin
"We should regularly review our family income, savings, and spending plan in family council meetings. This will teach our children to recognize the difference between wants and needs and to plan ahead for meaningful use of family resources." - Robert D. Hales