Everyone who wakes up early in the morning, dresses up and gets to work expects something tangible at the end of the month. Yeah it is the salary and for some they receive the wages. All in all we all need to work in order to meet our demands in life; from rent, school fees, house spending etc.
Life is designed in a way that even if you are the highest paid CEO in the world you have to plan on how to use your finance. Failure to which that job title you are holding might slip your way.
Managing our finances will put a step forward in life despite the little finance we hold. We need to learn to manage the little we have because remember money will never be enough.
That alone should show us that as we strive for more we make well use of what we have at hand. How do we manage our personal finances? The question may have formulated puzzles in our mind but there are five simple rules to this.
1. Have a legitimate personal financial advisor.
You need a financial advisor who will give you advice on how you need to handle your finances. That person starts with you. You are the only one who knows what is necessary for you. You know the miscellaneous and the most important things you need in life.
Taking that initiative to advice yourself on how you will handle your finances will be a leap of faith. You may not be so sure but you are the kind of person who is spontaneous in spending. This is where the second entrusted party comes in.
Don’t choose a financial advisor on the grounds of friendship. Remember most businesses thrive and fall because of friendship. Choose someone who will tell you the truth in regards to your finances. Someone who will work to make sure your books of accounts are in check.
A financial advisor will guide you on how to use your finances well. Make that financial advisor your friend and someone you can trust when it comes to handling the finances. Make sure he gets the books of records straight and whenever you make a spending where he needs to record make sure he has the record. If you cannot afford one then be one.
2. Have a Budget
Failure to plan is planning to fail. Your personal finances may not be enough to cater for your demands. Just as I said earlier, money is never enough. That simply means the demands chasing your finances are more. This calls for a plan. The plan is to budget. Having a budget will help you know your priorities and the finances you think is not enough you will be surprised how you will make good use of it. Budgeting your finances will help you realize the future plans you need. You will cut the cost of what you don’t necessarily need.
Budget is drawn like a plan. You can write it down if it is the shopping of the house expenditure plus the rent and emergency cash. All needs to be drawn and calculated then the remaining finance can be kept safe. This is the first step of spending of which when you have failed in it more predicaments is bound to come your way.
3. Avoid excess cash at hand
Walking along the streets where you are likely to find hawkers aligning themselves with their well brandished products is tricky when you have cash in your pockets. It is just end month and you are smiling your way the bank. One is usually tempted to acquire what he feels is good. The moment you will start bargaining the price you are most likely to buy that product. It will be out of will since the cash at hand seemingly is enough and much is even left. This will have destroyed your budget plan.
You can avoid these places whenever you hold cash but frankly the places cannot be avoided. The same case can apply whenever you are in the supermarket. You will find yourself buying what you did not want and one will claim that he is an impulse buyer. Everyone is an impulse buyer it’s only that it happens that some of us tend to hold much finance at hand. This poses a great risk of buying the unexpected. Avoid carrying cash at hand because the devil is always in the details to temp you to get that appealing, fashionable and latest product in the market.
4. Spend wisely
Money is there to be spent. The art of handling your finances wisely doesn’t necessarily mean that you now need to keep your finances. Humans have needs and wants. These two require finance to be facilitated. Your finances need to be spent wisely in order to make sure that you don’t perish in poverty. Avoid spending your finance in the name of handling it carefully means that money in supply will be short. Imagine everyone doing that. Inflation will be the order of the day and the economy will have been jeopardized at large. You need to spend your finances wisely just as budgeted and planned. This will make you avoid impulse buying and you will have made savings too.
5. Make savings
Adhering to the above measures will put you in a position to make savings out of your personal finances. You must make savings for the future. This is life and no one knows what will happen tomorrow. Savings will enable you budget for your future plans, dreams and goals. That car you have dream of or that mansion you have always woken up to think of will come out from the small savings we make. These savings will help you to know where you stand financially and help you to avoid investing in whatever lucrative you think of.
Keeping investments will make you to know how much you are worth, it also gives you a guideline on where you are headed in terms of your future plan.
Savings can only be gotten from cutting the costs of expenditure in our finances. Later on investments follow suite showing us the direction. Only the wise save. Have you ever asked yourself why Bill Gates, Donald Trump or Steve Jobs? They followed these simple rule of how to handle their finances using time. They say time is money so assuming it’s the finance and you need much of it. What would you do? The five principles will apply to it.
