You don’t have to be an accountant or an investment pro to manage your money in a smart way. The rule is simple: spend less than you earn and invest early and often.
What’s difficult is sticking to the rule, as there are lot of emotional and psychological issue that often prevent us from being wise with our money.
So experts advise we focus on the basics and work on following these simple rules in our personal and business lives.
Manage your expectations
You will not be content by working harder to spend more. Instead, work harder to save more. Learn to be satisfied with what you have and the prospects that await you if you manage your finances well.
Have anything you want, just not everything
Cut expenses ruthlessly on the things that do not matter, so you can spend as much as you want on the things that do.
Put it in somebody else’s hands
If you realize that you are not your friend when it comes to savings and investments, remove yourself from the equation. Automate your savings, bill payments and investments.
Some of us are on a constant search for perfect: the perfect bank, perfect business, perfect investment. And in this anguishing search we do nothing. However, action cures fear. So start with the best option you have and go from there.
Do not blame others for your financial situation. The circumstances may not be your fault, but they are your responsibility. As a famous saying goes: “It’s not the situation you find yourself in, it’s what you do with it”.
Care about your money
Nobody will ever care about your financial well-being as much as you do. You have the power and the brains to run your own money. So make a plan, get behind it and go ahead!