Money. Money. Money. Who can live without it? We need money for food, for clothes and for shelter.
Most people think that they lack money but what they do not know is that they are just mismanaging it. But what is the proper way of managing money? Here are some tips:
Need or Want?
Oftentimes, I ask myself this question whenever I buy something. If it is a need then I'll buy it if not then I'll disregard it. Asking yourself this question helps you decide on what you will buy. It is just a matter of discipline.
Save!
Yes! But how to save? Our mistake is we oftentimes to list down everything we need to buy and what remains will be our savings. But most of the time nothing remains because we fail to prioritize. The real method is SAVINGS + EXPENSES = INCOME. Meaning to say include your savings in your budget. Say for instance allocate 20% of your income to your savings and the rest will be for your month's expenses.
Another formula can be INCOME=SAVINGS. For instance, you have a part time job, your salary there can be your savings.
Research
You have read it right! Research for goods that can be a substitute for the expensive products that you are using before that have the same quality. In this way you can save more.
God is giving us enough. It is just a matter of good management.
