How you use it is more important than making money.
You have to come to manage money. Only then can the money you earn survive. Otherwise, you will never know when they will leave you. So now many are wondering what exactly is money management? What were they How do they do
Till now we have been taught how to make money but not how to manage it. Along with social and political literacy, economic literacy is very important. But at present the level of financial literacy in the society is very low. Now where do you have to learn big economics to get this knowledge? Why not read a big book? If you follow a simple and straightforward rule, it will work for you. We can manage our money.
You need to know exactly how much money you make. You need to know how the money comes to you, how it comes, what the ways to get the money, what you do to get it. You just have to be more discriminating with the help you render toward other people.
The means of earning money are called assets. And the ones that cost money are called liabilities. To put it simply ...
Assets: -
The things that bring money into your pocket are called assets.
Liabilities: -
The ones that get money out of your pocket are called Liabilities.
If your assets are high and your liabilities are low, then you are moving towards wealth. And if Liabilities are high and Assets are low, no one can stop you from becoming poor. Keep saving money and create new assets from that saved money.
Plan money. Decide exactly when and how much money you want. Want a lot of money. Hawaii immediately. Not such a vague goal. Set a goal. Do the right thing. We know exactly when and how much money is needed, so we can do the right thing. You know exactly what to do. If you go to a village and you don't even know its name and road, will you ever be able to reach that village? If not here's a new product just for you!
Keep track of the money. Record the amount received and the amount spent. Create a balance sheet. Month after month of you and all your family members. That means you will know exactly how much money is coming in and how much is being spent. It will be interesting to see what costs can be avoided. It will also show what needs to be done to increase savings. This will help in planning. Understand where the advantage is and where the loss is, then do what you can to reduce the loss. Focus on how to maximize benefits and maximize growth.
The best formula for managing money. That is
50: 30: 20
Spend 50% of your income on your needs.
Invest 30% income.
Save 20% income.
If your costs are high, consider how to reduce them. Think about whether you really need something and then spend it. Understand the difference between need and want. Save money Invest the money saved.
Remember, money is like fertilizer, and with proper investment, it can multiply many times over. If it is simply stored, it will rot.
If you don't learn how to manage money, no matter how much money you make, it will go away from you one day. We see people who have won lotteries worth crores of rupees become beggars after a few years. Do you know the reason for .
5% of people in the world have a lot of wealth and if we think all the money in the world is the same for all people then in a few years all that money will go back to 5% of people because they know only money management.
So remember. It is more important to use it and manage it than to make money.
