HOW TO MANAGE YOUR FINANCES

HOW TO MANAGE YOUR FINANCES

a lot of people are poor today not because they lack something but because of poor financial management, poor financial management is the same as poor planning, I have seen people getting a lot of money and still beg because they are now lacking, that is a sign of poor planning.

Money management is what leads to increase in whatever business you are doing, businesses that has a good money manager are most likely to increase, there are three levels of planning; personal planning, family planning and national planning.

am mostly concerned on personal planning, most people write to us asking about how they can be good managers, this thing is simple if you are not smart with money you are certainly not going to make it, people who succeed in life handle money with wisdom.

on personal planning what you need to know is the money you are getting may not be enough to carter for the whole family, so that is a sign telling you to start a business, if you can not get a good job then you need a business to help you out with some financial stress you have.

first of all you need to write down all your needs and wants that you normally want and add the money needed to sort out those needs. and just follow that the moment you get paid from your Job.

so kindly note that the money spent is not the money you should rely on.you rely on the money left after spending.

your worth is determined by how many assets you have, an asset is a tool that can be easily converted to money or is able to produce money. many forks want to increase there financial worth with totally nothing, financial stability comes as one puts him/herself together.

so you hear people saying financial stability is a choice one makes, its not an automatic move, those people you see having a lot of businesses and companies did not just start by dreaming only, it started by taking action on the dream they had, action is what a lot of investors do not have.

the money thing requires you to put your mind in one place and start developing smart plans. here are the keys that summarize all these things you need to do.

1. WRITE ON PAPER.

most people are mentally made to act on what they write, if you are that person then its best that you put on paper all that you plan to have. writing down your plan includes all your needs, wants and the money involved, we are talking about personal financial planning to help you being stable. let your monthly budget be well planned, below is the illustration of a monthly budget.

SIMPLE MONTHLY BUDGET
MONTHLY EXPENSES
Item	Amount
Rent/mortgage	$45.00
Food	$53.00
family	$11.00
other family responsibility	$15.00
other	$18.00
Car payment	$0.00
Auto expenses	$0.00
Student loans	$0.00
Credit cards	$0.00
Auto Insurance	$0.00
Personal care	$0.00
Entertainment	$0.00
Miscellaneous	$0.00
Total	$142.00

when your budget is well written, you will know how much you need to save and invest.

2. TAKE ACTION

This is a fun part, I always say we have a lot of planners but few actors, acting is one of the trick things and mistakes a lot of investors make, a personal plan will also include saving,the money you are wasting can be used to save and later on invest, the reason for saving is so that we might meet our target of the level of investment we desired. this year be unique by taking action on all of your plans.

3.INVOLVE OTHERS

Partnering your work with others is a great way to be encouraged, when you are working with others they expect you to get the best in the project you are handling, so if you feel lazy to work on your plans its better you involve others but when it comes to personal planning everyone must have there own  plan, group planning can never be compared with personal planning, in personal planning you train your mind to be smart with money. while in group planning you put your minds together as a team to accomplish a common good. so in big plans that you are lazy to work on involve people and you will have the best results.