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4.SAVE MORE THAN SPEND
Learn to balance your spending and savings. When your expenditure is higher than your savings or perhaps no savings at all is very dangerous to your personal finance life. You should save more than you spend or balance them. The activeness of your account depends on the activeness of your savings, how wealthy you’ll become depends on your savings. You must crave to save the little amount you chance upon. Avoid saving money in your pocket or in your room, you’ll spend it without noticing. You should save in your bank account rather than the primitive way of saving money. You can have separate bank accounts including mobile banking, that’s linking your bank account to your phone for easy saving.
- CALCULATE YOUR EARNING AND EXPENSES
You should consider the amount of income you receive on daily bases, weekly basis and monthly basis. Compare your daily expenditure to your daily earning and same to weekly and monthly. Your earning rate should reflect your expenditure rate. Don’t earn, save to buy an expensive car whiles your business needs to be groomed to grow up buoyantly. Don’t go spending years of earnings to buy a car which wouldn’t affect your business positively.
- PAY YOURSELF FIRST
One thing you should consider first when you receive your salary as salary worker or receiving your dividends or returns as a business mogul is to pay your self. Paying yourself means set aside your savings amount before you think of any other things. Consider yourself not paid when you take your salary without setting aside savings. Consider it a crime for not saving any money after your returns. Paying yourself means enriching your bank account and this will go a long way to improving your personal financial life.
- DON’T BORROW OR CREDIT TO BUILD A LIABILITY
The easiest way to personal bankruptcy is borrowing to build or buy a liability. The potential of paying back is very thin. Liabilities don’t add money to your bank account, so if your borrowing purpose is to purchase or get a liability. Every liability needs money to keep it maintained all the time, combining the loan plus interest plus a liability maintenance. If your account is not strong enough, it will suffocate. Just imagine loaning to buy a house, luxurious car and any liability commodity. You’ll end up selling them to pay the loan plus interest if your savings ability is not strong enough. Simply stay away from debt and read more on money saving tips!
- SAVE TOWARDS A VISION
Don’t save blindly as a way of compiling your money in the bank rather save your money towards a craving vision. If you set for yourself a vision which you want to save for, it triggers your saving habit toward achieving your set goals as you read more on money saving tips. Rather than save to spend, I’ll urge you to spend to save towards your set goals. Setting goals and vision will help reduce extravagance and makes you economical for good.
