How to make money is a wide topic in all round world but hardly could people think of how to manage money. If you understand the basis of how to manage money you will have a sound knowledge of the fact that how to make money has only limited percentage on your wealth rather how to manage money. How you spend the money you make on daily basis, understanding the difference between liability and asset contribute immensely to your wealth.
Taking a global look into the world today, people spend more than they earn and that simple fact will cripple any financial stability. This is not the issue of pay as you earn (PAYE) when it comes to issue of tax but, even if your tax payment method is PAYE, you can still boost of something tangible.
Chances are that for Mr “A” to make 10,000 US dollar on monthly basis and Mr. “B” makes 5,000 US dollar yet you will discover Mr. “B” flourishes more than Mr “A” and that does not simplify Mr. “A” does not make money but Mr “A” does not understand the significant differences between liability and asset which Mr B does and probably how to manage money after making.
Meanwhile, in this present global world, it’s no longer how to make money that counts but how to manage money. Bill Gate, Warren Buffet, Steve Job (Apple co-founder), Alico Dangote, Are Akande, and the likes understand the huge differences between how to make money and how to manage money.
What makes you rich is not how much you make on monthly basis but how you manage you earning. Getting rich is all about the law of karma, the more you put into it the more reward will become yours. Nonetheless, note there is no certain limitation to the level of your wealth and so also the level of your poverty does not contribute to the economic downfall of a country or the world at large.
I’m not preach the gospel of making money today, but what you need to know and how to manage money instead of focusing on how to make money which does not really worth your total attention.
Focus On How To Manage Money Instead Of How To Make Money
You may have more than enough reasons to think of how to make money online or offline as the case may be but with just a single reason on why you should manage money, I mean the one you have or expecting, is more reasonable than the quantum reasons you have to make money online or offline.
Like I said that the amount you make does not make you rich but the level of your management will speak of your monetary standard. The following points will guide and convince you not to concentrate on money making strategy all day long rather, concentrate on how to manage the one you have or expecting.
Spend Only On Necessary items
No matter what, there will surely be a reason for any action, either for oppressing or egoism purpose. You just have to be curious about every action you take and ask yourself a question that really demands urgent answer. Take for instance, questions like; Why do I think I have to do this? Does this really necessary? What after now, would I be able to handle it? Providing answer to questions of this type before taking any step worth more than a gold at time.
I was just reading a post days back on Facebook and a friend guy emphatically said; why should I buy a new phone, when the one I have is still functioning effectively? Sounds great, and immediately I thought of being in vogue but mark you, being in vogue has a lot do with what you do with you money. Getting another phone will only bring about egoism but will drain his pocket either now or thereafter. Think of what is really necessary and that will be of good use instead buying what only brings the man in you when it comes to competition and jealous.
Understand The Differences Between Liability And Asset
This is where most people failed and until a clear picture of what asset and liability means is understood, surely, things will always go wrong financially. There are things that do not necessary at the beginning of a journey or run up for instance. Take this for instance, you are in for 100KM speed and you decided to stop when you got to half way, definitely you are in to be the loser but instead of waiting and celebrating half-way, you will have to complete the race before jubilation.
When you have not truly arrived, don’t try to be as if. A friend I met during my service year said; Knowledge is not a power rather it should be put that knowledge is a potential power and upon the accomplishment of the target goals, it can then be regarded as a power and I truly went for the idea when it comes to how to make money and how to manage money.
So spending on what will whence consume your earning is not necessary rather you should spend on what would add to what you have on ground. Why building more houses when you can simply buy a land, surveyed it and have the entire ownership document and put it on sales years after instead of building houses that will surely lose its value after few years (You remember law of diminishing return?).
Work To Buy Instead Of Work To Earn
This method is quite simple yet neglected and doesn’t consider a trivial method of managing money/wealth. Yes, we all want a high pay job but do you ever think of becoming a sole partner of the company or firm that pays you on monthly basis?
No I guess! Why and why not? It takes two to tangle, so also; money does not solve problems but intelligent does. Just like you have a share in a bank, and as soon as you have a reasonable percentage of shares in that bank, you become a prime partner unknowingly and this can as well be used to manoeuvring in your working place.
I don’t want to be paid always but I would love start paying group of people working for me. So, think of what you can do to start contributing to the development of any organisation you found yourself in terms of financial support and manoeuvring your way into partnering with the company as a contributor and before you know it, you are part and parcel of the company and that will be so hard for the company to send you away otherwise, they will have to pay the price.
Settle Your Bill First
If you really want to be rich, you need to understand this strategy. During my undergraduate days, one of my lecturer explained to us how he used manage his hard earning salary to bring about sustenance in his family and extended family in the same wise. And in his story, I learnt that I must be able to pay myself first otherwise, sustaining for a month would be the hardest thing on planet earth.
This humble man had different account for different purpose and one for his personal use. Crazy you said? But to be frank, it’s a wise step and decision in the same wise. As soon as I got my monthly salary alert, right on the canter, I would divide it into the right and appropriate channel, including my own personally account, he said and I was baffle for that great mindset.
Despite the fact he is the prime owner of the money, he does not act on that; he pays himself on monthly basis after being paid by his employer. You too can use this method to enrich your pocket always and all the time as time may have it. If for instance you earn $1000 on monthly basis, base on agreement within the family, you can find your way in so that 30% at least of your monthly income will be saved for no reason or will be invests in a business of your choice irrespective of what may happen and before you know that, you will move from half-full to full.
Have Multiple Source Of Income
Over the years, I have come to realised that; if you want to be different, you need to act differently. Yes, having more than once source of income is not a bad idea of how to spend your money but you must know what you are doing. Keeping money in the bank is a waste of resources from my end.
Instead of keeping your money in the bank, why not think of another way to manage it in order to add one to ten to make it eleven, very simple! All you need to do is go on a market survey and analyse what you think the environment where you found yourself needs and go in for it and beforehand, things will change and you will begin to notice some change in your financial standard. Having more than one source of income is the best way to have your way to the top otherwise; you will only remain at the middle class position.
Curious on how to make money or make more money is not bad, in fact it’s a reasonable idea or thought but learning how to manage money is a sun-fire way to stay above an average business in the recent world.