The majority of people in the world do not manage their money wisely. I know this, because for many years in my life I didn’t do this myself. I was living pay cheque to pay cheque, barely making ends needs.
What are the elements of wise money management? I found the following 4 tips really helpful:
1. Save your money.
Have a savings plan in place where you take a portion of what you earn and have it automatically transferred to a savings account that you cannot use. This is your “financial freedom fund”.
The best way to set this up is to to it automatically. This way your emotions cannot interfere with it. Warren Buffet said:
Until you learn to manage your emotions wisely, you will never manage your money wisely.
2. Have a plan to increase your income.
I found that there are four levels to earn an income. These are:
level 1: exchanging your time for money
level 2: being self-employed
level 3: being a business owner
level 4: being an investor
Look to create an income from every level and to earn more money from the levels 3 and 4 than 1 and 2. You will start with level 1, move to 2 and 3, with 4 being the goal: to create an income that is not dependent on you being there.
3. Have a budget and track your expenses.
You can do this the old fashioned way (pen and paper) or use electronic tools like Excel or Quicken.
4. Change your mindset around money.
So many people have limited beliefs and ideas around money that aren’t true and stop them from becoming wealthy. If you don’t value money, you will probably spend it, instead of saving and growing it. Make sure you value money!
To help people like yourself to manage their money more wisely, I have designed this special course on Udemy that includes the above steps in details and much more! Click the link below to watch the preview video and to purchase the course to change your financial destiny!