Frankly speaking, most people have a bad spending habit as they tend not to comprehend the language which money speaks. In most cases, when they get to understand it, it is another thing to relate it fluently.
Outlined here are verified steps on how to properly manage your finance;
1. Learn to separate your needs from your wants: There is a difference between “I want to buy a phone” and “I need to buy a phone”. The first statement was birthed out of the
insatiable nature of man, the latter was
birthed out of necessity, focus on what is necessary not your wants. Your wants can come in after your needs have been duly met.
2. Always remember make savings: Any income you make, before you remove your tithe and money for few other things, always remember
to save at least 10% of your money, it
might be hard at first, but trust me the
more you commit yourself to it the easier it becomes.
3. Do not spend more than you earn: This pernicious habit has made most people go bankrupt, some even go as far as buying things on credit while they await their salary when the salary comes they won’t be able to save because they’ve used it to pay the debt.
4. Have multiple sources of income: You need to have more than one channel bringing in money for you because if a river has just one source it’ll quickly dry up compared to a river with five sources.
5. Invest: I can’t stress this enough, see your money as seeds, you plant them in very suitable soil i.e profitable investment with low risks then you harvest the fruits that your money labored for then replant again, now your money is working for you and you don’t have to stress anymore, just sit back and watch your wealth pile up.
Another habit you should adopt is making use of Credit Card as it can actually help you manage your money, if you only spend what you can afford and pay bills every month, in full. Your monthly credit card statement gives you an excellent record of your spending habits. It’s a useful budgeting tool and comes in handy at tax time, if you need a record.
Many cards also offer some nice rewards, like airline miles, hotel nights,
or cash back.