Money and its management are totally tricky concepts as now-a-days in existence are a lot of ways to earn, spend, save, invest and worse of all is waste! More than ways to earn or manage are there ways to waste money. Today, after reading this article you will excel the 4 crucial aspects of money management as its not a good thing to waste all of your hard earned money. These are the 4 crucial aspects of money management for the basics:
1) Open an account in a financial firm or a bank Once you make up your mind to utilize your money in a proper manner then the first thing to do is run to a bank or a financial firm to open a bank account. As when people are about to spend money deposited in there, they think a hundred times but if its with them, then not a second is given to thought and cash is burnt to ash! There in the market are a dozens of dozens banks and firm that are trying to attract you to deposit your money with them but you must deposit wisely, there is a great variation in the interest rates. Many of private firms offer great interests but you must also beware that those are genuine firms, not frauds as the number of fraud is rising day-by-day. Deposition not only earns interest but also keeps you from getting it wasted.
2) A Budget Yes, B-U-D-G-E-T, its the word for your pocket. Now-a-days as the marketing techniques are improvising day-by-day, we must also improvise our spending and saving. To do the so called improvisation, what we must do is work it out. One of us will say that I am smart, I work it out in my mind but its not the thing a written budget has its own merits. In a F1 race, the aerodynamics play a vital role in making it the best, a car will go without aerodynamics but it won’t be the best. So, its upto you that you live a mid-class life or utilize the majesty of a well planned budget and get your life’s financial aspect on the top gear. List the earnings and spendings, prioritize and always try to prepare a surplus budget and not a deficit one
3) Financial diary Another, crucial thing about money management is to maintain a diary which must account all of our expenditure. It is more or less similar to the budget but a slight difference is that it will help you monitor your progress on the wealth building journey, don’t you want to become a millionaire. So, maintain such diary to know where you exactly are in the financial world.
4) Investing The last but not the least investing. Investments are the key to success. You want to succeed? Here’s a brief idea that what its all about! Investing is not really what we think of it, its not just buy some shares of a company in the market and pray and sell it when the price go up. Its exactly trading or in other words is a gamble. It is precisely a plan to achieve great success. If you don’t have the confidence then there are companies offering SIPs, these plans are for people who want good returns in their investments but be careful to choose one Mutual funds are another option. To build up a concrete Investment plan call on an financial advisor. If you don’t want to trust anyone with your plan then the option is to go and grab copies of good books such as a Series by Robert Kiyosaki, the Intelligent Investor by Benjamin Graham. These books are not only world best sellers but also among the favorites of great investors like Warren Buffet and Bill Gates. For the basics if implement these then you’re surely on the way to be successful.