Effective money management encompasses the balance between your earning, spending, saving and investing pattern. How you choose to earn, spend, save or invest, ultimately defines and decides your financial status at every stage in life. Incorporating healthy financial habits into your lifestyle, not only sets you on the path to financial independence, but it also frees you from the stress and worries that come with trying to live freely and sustain your lifestyle. Think of effective money management, not as another thing on your to-do list, but rather as a way of life that will guarantee you long term financial success.
1. Start a side hustle
Relying on a single source of income will have you living from paycheck to paycheck. Although salaries may range, a side hustle will get you on the fast track to early financial independence and have you less reliant on your next paycheck. Side hustles are all the rage, the business skills you learn as an entrepreneur can pay off in other parts of your career.
2. Monetize your talent
Everyone has a unique gift. Even if you think it’s something everyone is doing or has already done, the truth is we all can visualize and contrive it in our way. The key is being different by leaving our distinctive signature on whatever we choose to do. Monetizing your talents will have you earning more and loving every moment of it. After all, it’s often said if you do what you love, you’ll never have to work a day in your life.
3. Increase your earning potential
If you find yourself in a workspace where promotion equals higher income, you have to prime yourself to be the best candidate. In a world where job positions are highly competitive, the only way to be seen is to stand out. Take that work course, write that professional exam, put in the extra time and effort. You can also decide to learn a new skill that’s beneficial to the organization, that way you’re not only increasing your possibility of earning more but you become more valuable/indispensable.
4. Sell what you don’t need
This is an easy way to get extra cash on hand. It’s often said one man’s trash is another man’s treasure. You can get rid of things causing clutter or the excesses by selling them. No matter how small or irrelevant you think it might be, selling those items will make a difference in your total earnings. There are numerous online market places you can use to reach interested buyers, make use of this opportunity.
1. Track your expenses
A small leak will sink a great ship. If you’re not monitoring how much leaves your wallet and what for, chances are you’re not aware of little, or even large expenses that are bleeding you dry. It pays to evaluate your expenses and know if there are ways you can cut back on spending.
2. Align spending with values
If you use money as a tool just to “acquire” then you probably don’t know the value of what you have. Aligning spending with your values will guide you to thinking consciously when you spend. It will also give you clarity on priorities and irrelevant expenses.
3. Embrace frugality
Frugality isn’t denying yourself pleasures, it’s understanding you can survive on “enough”, and still have a rich life. It’s debunking the fib that having “more” will give you long term relief. The quest for more is a vicious cycle of dissatisfaction, by knowing your “enough” you’re spared from the torment of inadequacy.
4. Have a plan and stick to it
A unanimous goal in life is financial independence. No one wants to have to depend on anyone or have to worry about money in general. The only way money rules and tips can work effectively for you, is to have a plan that aligns with your financial goal and stick to it. Create a budget that works for you to get your spending on track.