Yesterday we talked about Building Your Future By Building Your Career. After having a successful career, the next thing is how to manage your finance.
If you don’t manage your money wisely, even do you have the best career in the world; you will not see that success you really need.
As a success driven individual, you should know when to spend money and when to invest money. Also you should understand the importance of saving for rainy days.
Have a realistic budget
You should set your budget to accommodate your immediate needs first. There will be constant changes in your budget as your finance and needs change.
It is very important to track your expenses, know what you spend money on and don’t spend money unnecessarily.
10% of all your income should be allocated to saving, this should not be touched unless on emergencies or investment.
Try not to be a big spender, only spend money on things you really need.
If you use your cards (either debit or credit cards) to make purchases online, then you need to monitor how much you spend online. You can open a separate account for the card you use for online transactions so that you will not mistakenly use your savings.
It is best to pay for things in cash, try to avoid paying bills with cards. In my opinion, only pay with card when there is no other option.
When you plant a seed, you don’t get one see back but many seeds, same applies to money, when you plant money by investing it, you don’t get only your investment back, but you get more money.
Just as you need to be wise when planting seeds if you want it to grow, same applies to money, if you don’t invest your money wisely, you might end up losing your investment.
The 10% that you budgeted for savings can be used for investments since you will not need it for a very long time.