If you want to truly become successful with your finances and wealth, you need to become a better money manager. Do you realize they are those out there that have been without much money and become rich only to lose everything again? It’s because many of these people are not good with money. To make money become a tool or steward for you, you need to learn how to really control money. Don’t be like most of the world’s population that actually becomes a slave to money.
Want to live Financially Free, Money is a tool that will get you there, want be able to travel extensively or live on your own time, again money is a tool that will get you there. Some see money as evil. They think it is the root of all evil. If that is the case, these same people should shun all their worldly possessions, give up all their money to charity and go live a monk’s life in Timbuktu. Money is not evil, it is an unhealthy love of money that becomes the root of evil (greed), because those same people will commit illegal and immoral acts just to get money. Now that we have that cleared up, now we can move forward.
To become better money managers, we need to put our money where our mouth is. We need to start respecting what money can do for us and help us accomplish in our lives. So, just why is there such an unequal distribution of wealth in the world? You have the extreme rich (more than a billion dollars net worth) that just keep getting richer as money works for them and the extreme poor and the majority of middle class types that falls between the two. If everyone that lived on this planet was a better steward of money, I am convinced that there would be better financial situations for most people on the planet.
Now, how do we become better money managers? Well, here are a few basic steps to get you there:
(1) Journal all spending. Get a cap on all spending and know where you cut unnecessary spending. Most people spend everything and know where nothing went.
(2) Pay yourself first. If you are not currently doing this, you are breaking one of the cardinal rules of money. Remember, if you aren’t paying yourself, you are just paying everyone else.
(3) Save at least 10% and more of your income always. You need to get in the habit of at least making certain 10% goes to yourself. Once you get more out of unnecessary expenses, put away even more.
(4) Learn to become an Investor. Most people are excellent spenders. How many people that you see can actually grow their money into a fortune though? That is the key and all that really matters with money.
(5) Set aside an Emergency Fund. If you can set aside at least four months income (8 months ideally), you are ahead of the game.
(6) Get Passive Income going for you. Any money that you can get working for you without working directly for it is considered passive income. A good example might be leasing a piece of land commercially and collecting every month. Get creative with this.
I hope you enjoyed this post and as usual please feel free to comment as well as share this post. Remember, to really become better money managers, we first need to respect money and know what it can help us accomplish in our lives.