Money is slow to come in but fast to leave. Making money isn’t the problem but knowing how to manage it. Many people who have come across money, lost it due to unwise financial management. These are some proven great money principles to assist you in your finances.
1. Have financial intelligence and emotion
Financial success has more to do with your mental ability and emotions to control money rather than the physical numbers. You have to think correctly and have the emotional control over money.
2. Make financial goals
It is prudent to always have financial goals rather than spending your finances as they come in. You shouldn’t just be spending your monies as you make them because these temporary expenses don’t last for long.
3. Spend less than you earn
The mistake most people make with regards to money is spending above what they earn. Obviously, you will be running at a loss and will have nothing left to save. When you spend less than you earn, you will have some amount left to save for the future.
4. Imbibe the culture of saving
You should endeavour to make saving a priority. No matter what your expenditures are, you should always set aside an amount from your earnings or income.
5. The little amounts count
No matter how little your savings amount maybe, the effect will become obvious on the long run and will be useful to you in the future. Begin small, and as you progress, you can increase the amount set aside for savings.
6. Learn to save big
While it is advisable to start saving small, it is good to learn how to make big savings. In order to this, take advantage of big ticket items that come with good discounts, thereby allowing you to save more.
7. Opportunity Cost
Being financially successful is not all about earning big. You have to make some sacrifices by understanding your opportunity cost. You should forget about the least important items, buy the most important ones and save the remaining amount of money.
8. Be Patient
Genuine money doesn’t always come over night, you have to work hard and wait on it to increase by the day. Don’t be discouraged in what you are doing. Give it your best shot and always have your mind on the prize ahead. In time, your bank account will begin to swell.
9. Don’t wait for the perfect opportunity
Perfection is an illusion. Many people are reluctant to put their finances in order because they feel that they don’t have the perfect opportunity. If you are waiting on a perfect venture, then you might wait for a very long time. Begin with what you have on ground. Take the first step and before you know it, things will play themselves out naturally.
10. Don’t be afraid to fail
Failure is what you make of it and it is inevitable in life. If you learn from your mistakes, then they are not really failures. Even renowned business men like Bill Gate encounter business failures but that doesn’t stop them from moving on. You shouldn’t be afraid to fail because you can always learn from it.