Why You’re Struggling To Make The Most Of Your Money
People spend most of their lives putting earning money to cover their bills, hobbies, and growing families. They treat their jobs with respect. They set their alarm to get up on time. Bring their focus and energy to work. After work, they recuperate in preparation for the next working day.
However, once payday comes, and the byproduct of their hard work is finally here. Many people don’t take care of their money or respect its value. Whether failing to compare motorbike insurance for the best deal or, frivolously spending money on things they can’t reasonably afford. Even though they’ve spent all week or month putting in the hours to earn it. Other examples include
Improper Budget- Or No Budget At All
A paycheck often brings a sigh of relief for couples and families struggling to stretch their income over the month. Sometimes, the struggle isn’t because an individual isn’t earning enough- it’s a mark of how a person is managing their money.
A solid financial budget incorporates the weekly and monthly fluctuations in bills. If you operate with no budget at all, you’ll struggle to make ends meet.
It’s essential to respect the fruits of your labor, as much as you respect the work itself. Meaning, treat your income like a job, and as if you’re the boss. You need to delegate your money to fulfill specific roles, such as paying the bills and savings for financial freedom. The leftovers are for splurging (within reason).
Strategic budgeting shall improve a persons’ financial outlook and ensure they are taking better care of their money.
Placement Of Money
Crumpled up in your back pocket, stashed in your car’s glove compartment, or down the back of the sofa. Money in these locations shows a distinct lack of respect for its value. Your cash needs somewhere to live, that’s safe. If it’s not safe, it becomes prone to theft, damage, or you lose it.
A wallet or purse isn’t the only place to store your money. This point also regards accounts. Saving a lump sum of money each paycheck is excellent. But leaving it to do absolutely nothing in an account with low interest rates, shall do it no good.
As mentioned above, treat owning your money like a job, and put it in places where it will reap the most benefits. Think about the amount of walking around money people lose, because it’s not in a secure bag. Here’s another one: the interest people miss out on, because they can’t be bothered to spend time moving it to an account that works for them is phenomenal.
The crux of this article is;
If you expect your money to take care of you, you must take care of your money. — Suze Orman
Strict monthly budgeting is essential. Placing your money where it is safe and where your money can work for you in a high interest or investment account is vital.
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Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/