Many of us are bad at managing money and especially if you are growing in an environment where money is always a matter, it will take you a few years to understand what exactly money does.
Money is a tool! Keep this in your mind. It is not how much you earn money but how you use and manage it, play a key role in becoming rich.
Have you heard the phrase, ‘work smart not hard’? So, this is the key ingredient between rich and poor people. Have you ever noticed that poor people work so hard and earn very little?
Well, this is so unfair, right? Because when you work hard you should expect a large amount of money. If you work hard and get very little then you should change your system, your way of working.
Look at the rich people. Do you think they work hard to earn their money? Well yes, ofcouse, they work hard and SMART too.
Rich people have all the time in the world. They party, they travel, and they live their life to the fullest and side by side manage their business to the core.
Let see how they do it!
Steps to properly manage money like the rich
- The right attitude towards money: Well, this is scientifically proven that having the right attitude about money will actually make you rich. Stop brooding to everyone that you don’t have the money or phrase like, ‘I can’t afford it’, it’s too expensive and ‘I’m poor, I’m broke, I come from a poor family’ and stuff like this. All these kind of attitude towards money, directly affect your subconscious mind automatically and by default, it will make you destined to be poor. So, it’s time to change that thought and feelings about money.
- Have at least two bank account: One for personal savings and the other for business or work. Rich people have more than two and they manage it accordingly. Your personal savings should be the one you save for yourself or your family and the business account should be your salary account or business account. Do not mix the two together. Now don’t tell me you don’t have enough money to open two accounts. Well, start working and open fast. Look for banks that have minimum average balance maintenance.
- Don’t spend lavishly if you don’t have enough money. Spending money wisely is what the rich do before getting rich. So, don’t go spending all your work’s money thinking, ‘oh, I work so hard this month, I deserve to spend it more!’ So, forget all about it and do this instead. Save! First, save and then give yourself a treat. Even if it’s little but you got to save it a little too. Because if you don’t save them, how will you have money?
- Budgeting your whole month expense. We all have fixed expense and unexpected expense. Fixed expenses are electricity bills, mobile bills, food extra, which are mandatory every month. So by budgeting, it means that you put aside the money needed for basic needs and you are not spending extra money more than you need.
- Avoid taking loans: Loans will actually make you poor rather than helping you out. The high-interest rate that you have to pay is way too much, that if you don’t have to pay for the loan, the interest itself will be able to sustain you for a month! Instead, it is much better to ask from your trusted friends and pay them whenever you have the money with no or less interest. So, all in all, be smart, not hard.