One key habit that you must develop in life is the ability to manage money. In this post – How to develop money management skills? We’ll take a brief look at what you need. There are many essential life skills individuals should have in order to progress. As you become independent you come to the realisation how important money is in this world. Anyone can make money. The real skill is learning how to manage that money to make it last and grow.
One book I would most definitely recommend you get and read is ‘Rich Dad Poor Dad’ – What the Rich Teach their Kids About Money, as the author of this book says – “The rich have money work for them.”- Robert Kiyosaki
This book is an excellent read to open up your mind into why, you should not base your life around the theory – study hard, get good grades, then get a good job that pay’s you well, spend money, work hard, save a little, then try retire in 30-40 years time broke. Instead the book gets you to start think outside the box about money, and why you should look at building wealth.
Back to our topic, how to develop financial management skills that will help you get more control and choice over where you work and how long you work for. Financial management needs to become a habit of your rather than just a new years resolution – we know what happens to those.
Basic Money management Skills:
To make the most of your money, budgeting is vital. Being able to master the skill of saving the majority of your money and restricted spending, will benefit you in the long run. To do this go through your monthly spending habits and cut out the unnecessary parts. To kick start try a spending freeze.
Organise financial records
To be completely in control of your finances you’ll need to know the ins and outs of your expenses like the back of your hand. Whenever you spend, store your receipts so you can keep track of monthly spending – try downloading a money management app, very useful tool in controlling and tracking your spending. By knowing your accounts and expenses you’ll be able to be honest with your budgeting and such.
Avoid debt like the plague
This may seem easier to say, however there are many ways in which you can get yourself out of debt. Being debt-free is a peaceful freedom like no other, but you’ll need to stay ahead of the game to achieve it. There are many ways as to how to do this; don’t raise your budget, limit housing expenses and manage credit card balances. Learn to budget on your debit card and use that. In this way you’ll understand how to budget, without allowing yourself to overdraft.
Keep track and Balance your bank account regularly
This seems common sense, right? Regardless it’s paramount in holding yourself accountable in your spending. Write down how your money is being spent, whether it be bills that are automatically taken out your bank or weekly shopping that adds up the same every week. For example if your spending £50 weekly on food shopping and you need extra cash flow, try cut down or find cheaper alternatives. It may seem extra work but will be worth it.
Money does indeed make the world go around. It is extremely important and is one habit you must master, if you want to succeed in life. So no matter how much you say it doesn’t matter, it truly does. Thus the importance in learning how to manage money.
In summary money management skills generally is taken for granted, no one usually gets taught this in schools as they teach you languages, music or history for example. I wonder why that is?
If you plan to be financially well off and have decent amount of savings, possibly even have the chance to invest and build wealth then you should really put some effort into learning how one can manage their own finances. Listed below are some good books you may consider reading:
Michael Steven is an Author – Publisher, Entrepreneur, and Investor. A leading authority figure in the world of business, money, finance, and wealth management. With over 30 years of experience, he teaches people how to get out of debt and stay out of debt. So if you are looking for a way out of debt or better still – aim is not to get into debt then read this book and make sure you avoid the pitfalls waiting for us all (like the credit card, or car loan etc.).
This book will teach you the secrets that could bring you a fortune. It will show you not only what to do but how to do it. Once you learn and apply the simple, basic techniques revealed here, you will have mastered the secret of true and lasting success.
As we all know money and material things are essential for freedom of body and mind, but there are some who will feel that the greatest of all riches can be evaluated only in terms of lasting friendships, loving family relationships, understanding between business associates, and introspective harmony which brings one true peace of mind! All who read, understand, and apply this philosophy will be better prepared to attract and enjoy these spiritual values.
BE PREPARED! When you expose yourself to the influence of this philosophy, you may experience a CHANGED LIFE which can help you negotiate your way through life with harmony and understanding and prepare you for the accumulation of abundant material riches.
In the final book – should you still wish to take the challenge of developing money management skills, then this really good handbook will teach you how to be productive with your time.
Book 3: The 4-Hour Work Week: Escape the 9-5, Live Anywhere and Join the New Rich
Forget the old concept of retirement and the rest of the deferred-life plan – there is no need to wait and every reason not to, especially in unpredictable economic times with COVID bringing the system and way of life we know to a standstill. Whether your dream is escaping the rat race, experiencing high-end world travel, earning a monthly five-figure income with zero management, or just living more and working less, this book is the blueprint.
This step-by step guide to luxury lifestyle design teaches:
* How Tim went from $40,000 dollars per year and 80 hours per week to $40,000 per MONTH and 4 hours per week
* How to outsource your life to overseas virtual assistants for $5 per hour and do whatever you want
* How blue-chip escape artists travel the world without quitting their jobs
* How to eliminate 50% of your work in 48 hours using the principles of a forgotten Italian economist
* How to trade a long-haul career for short work bursts and frequent ‘mini-retirements’.
If you read these books and apply what I have written in this post then – there is no stopping you from becoming productive and financially aware! Good luck, if you enjoyed this post please share and let me know if you have any comments.
