Money is not the most important thing in life, but money does affects everything that is important in life. This is why financial education cannot be taken for granted. Here are four basic principles for managing money effectively.
1. Improve Your Financial
Information
This is principle requires that you seek good knowledge about money, investment, bonds, assets, liability, etc. Thus, you first need to invest in financial education because your mind needs to be trained to win. This will require a little sacrifice of your time and money.
- Poor information is a liability
- Ø Poor
information creates poor people.
- Ø So
many people are struggling financially because they have misleading or
erroneous information.
- Ø Take
time, take pain to invest in good and adequate information on money.
- Ø The more you learn, the more you earn.
How do you apply
this principle:
- Ø
You are to learn from people who have
either made progress when it comes to money or people who have been successful
with money.
- Ø You
are to buy good financial books to read.
- Ø You
are to take up courses on Money Management. Both in person or online.
- Ø You are to seek for mentors or coaches.
2. The Principle Of Making Money Through
Expense
This simply means paying
yourself first of every cedis that touches your hand. This principle says just
as you indicate on your financial statement the amount you will pay for rent, food,
etc, it is equally important to indicate the amount you will pay yourself. And
this should be the first expenditure you make on every cedis that touches your
hand weather daily, weekly, monthly, quarterly, yearly or once a while.
I personally learnt this principle from one of the books of Robert Kayiosaki. Some months later whiles reading a book by Brian Tracy, he also mentioned the same principle. Every rich person with good financial intelligence practices this principle consistently.
3. Develop A Good Spending Habit
This principle requires you to first have financial goals. It requires you to have daily, weekly, monthly and yearly budgets. Budgeting is important when it comes to spending because it helps you to track your income and expenses. Developing a good spending habit using Questioning Technique.
4. Choose Your Friends Carefully.
This is an important
principle because when it comes to money management even the friends you keep
affects your money life. This is true because friendships affect the way we
think, what we keep our focus on and how we interpret life's situations
- Ø If
your friends are losers, you will be a looser.
- Ø If
your friends are winners, you will be a winner.
- Ø Friendships affects your money values.
- I believe these brief lessons have been of help to you in pursuing financial freedom. God bless and stay connected with us for more.
Kind regards,
MR. EDWIN KWEKU YALLEY.
Tutor, The School Of Friendship.