6 Tips For Money Management

avatar of @ikrahch
2 min read

73% Couple say that there is a tension between them over money and financial matters. People waste their money due to mismanagement of money. If your are facing the same today I'm going to tell you 6 Tips to mange your money.

Image by wiredsmart from Pixabay

1. Track your expenses

We use credit cards that give us to spend money in advance. This is the actual problem in our mismanagement. We use money by credit cards to fulfill our desires and after that we unable to recover that money. Running after reward points leads us to disasters. Use different apps to track your expenses. Spend money but only in compulsory things. Do fasting not for meals but for spending money that will disciplined Person.

2. Borrowing is a double edged sword

People take loans for unnecessary desires for example someone take loan for a car and they don't have any backup plan to return the loan. If you have a running business and you are so confident in it that you will return the loan then you can take loan. When you are confident that the loan you are investing in, must give you 10x profit.

3. Don't think future income is guaranteed

Most of people rely on their income only and think that it is permanent. Always remember nothing is permanent in this life. The biggest example is Corona Virus. We have seen that thousands of people got jobless and loses in their business. Now a days people rely on artificial intelligence and man power is reducing day by day. So you need to take initiative and learn some skills or make a side income. At least you can take a start.

4. Financial protection before investing

Financial protection is most important in our lives. We need to take life insurance. Many people thought that life insurance is a waste of money, No this is essential. No body nows how long you will live so this life insurance is most important from your family. They can survive in society.

5. Saving vs spending

We are so confused whether we spend or not. This is the difference between animal and human that they don't save they just eat at present time. Humans can save for the next days. Till you don't save your money you will be suffered with tension of your future. This tension irritates you so if you want to enjoy now you have to save for your future. Thrifty person will never save the money and he will suffer in future.

6. Avoid stock market

Stock market is like betting that will ruin your life. You will be king by this market and also you will be beggar due to this stock market. Because there is no faith in stock market. You can spend your money in mutual fund, FD or even on 3% interest in saving accounts. Because in these palaces you will be safe your money will be safe. But don't invest in stock market because this is extremely bad habit.

Posted Using LeoFinance Alpha