How Can You Manage Your Money To Make Progress In Life?
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Money is the sinews of war. This shows its importance in your life. To help you advance in life, this article will dwell on how to manage your money. And, at the end, you will list ten things that you can do TODAY to extricate yourself from the clutches of debt.

Did you know that U.S. government statistics say that most adults spend their whole lives without learning how to master money?

Although a lot of money passes through a person’s hand during his working life, at retirement, after some forty plus years of hard work, only fewer than 5% of them have enough money saved, invested and in assets to ensure a decent retirement income.

The remaining 95% make do with measly Social Security income for all or some of their basic needs. All these people reached that stage of their lives wondering why they have so little to show for all the work they did in their lives.

To avoid this situation, you need to master certain “Money Habits” that make you a master instead of a slave to money. But before that, it will be good to look at the “The Poverty Habits.”

There are three poverty-inducing habits:

Poverty-inducing habit # 1: negative attitude about money

People earning low wages tend to “waste” what little they have left after taking care of necessities such as rent and utilities. Their thinking is: What I’ve got left is so little that it wouldn’t make any difference if I spent it. The end result is perpetuation of poverty.

You’d think the solution is a bigger wage. But no. A person with such a poverty-inducing mentality will still squander the remainder of their pay even if they earned more. Strange as it may seem, there are people earning high incomes and still living from pay to pay.

Here is the only law about money to help you escape from your financial prison

Going through working life pay to pay and burning up all your money before the next payday is like locking yourself up in financial prison.

To break this negative cycle and get ahead, the only law for you is: PAY YOURSELF FIRST.

Henceforth, take a percentage of all the money that comes to you (pay or other) and put it aside as saving BEFORE you pay any kind of bill. This could be 1% or anything up to 5%. Decide and make it “untouchable” no matter what financial problem crops up.

Even if it sounds crazy to you, obey this law and in three months you will see how your attitude about money AND your actual financial situation will change for the better.

To summarize: change the way you THINK about money and your actual money situations of your life will be transformed miraculously.

Poverty-inducing habit ≠ 2: slavery to debt

In the olden days, people saved up for things they wanted. Nowadays, we debit them to a card and get them immediately, and then pay for them month after month, year after year. This is not bad in itself. But misused and overused, this can literally make you a SLAVE to debt.

If you are a slave to debt, you should make an effort to break that terrible habit now. However, if you are heavily indebted and in a desperate situation, what you need is to maybe seek professional assistance.

Legitimate counsellors can help you manage your debts and creditors. The best will be to contact your bank manager or your family accountant for a referral. Here under are three ways to quash the habit of being slave to debt:

Step # 1: STOP the habit which got you into debt in the first place: Some of these habits are buying on impulse, living beyond your means, making major purchases, and gambling. So, buy only after careful thought, live within your means, delay major purchases and seek help for gambling.

Step # 2: Make a plan to systematically reduce your burden of debt: After paying yourself, settling bills, use the rest to reduce debt. If you have your own home or other mortgageable asset AND have piled up a lot of high interest consumer debt, it’s time to use the equity in your home to obtain a debt consolidation loan, pay off a chunk of the high interest debts and take a lower interest debt in its place. More importantly, avoid piling high debits on the cards again.

Step # 3: Avoid getting indebted again unless the debt serves to IMPROVE your financial situation: Necessary debts may be for house purchase to stop paying rent, furthering your education, moving to a new area to seize job opportunities or take up a new, promising job.

Poverty-inducing habit ≠ 3: Not increasing your value in the market place

The size of most wage payments and the opportunities available to people are dependent on the concept of “value.”

Let’s take the professionally paid athlete. The more he increases his performance, the more he can legitimately pretend for a salary raise. Rival teams may even buy him at an astronomic cost and give him eye-popping salary. The increase in his value came before the increase in his salary. Here below are four main ways people may increase their value in the marketplace:

1. Performance

2. Experience

3. Education

4. A combination of the three above

Ways to improve on-the-job performance include a better attitude to work, more punctuality, better cooperation, freely taking on extra tasks, etc.

If, with time, you are learning a new skill or doing better at the job, or finding ways to do the job more efficiently and effectively, your experience will increase. This is important as salary increase with length of service is no longer considered.

Education is the greatest income multiplier. New technologies are coming into the working place and changing working habits fast. Only those who learn to keep pace with this trend will survive. Those who “refuse” to continue their education will not only earn less, but the chances of finding themselves jobless are great indeed.

The three prosperity building habits

Just as certain habits induce and perpetuate poverty or lack of money, others bring prosperity or abundance of money. These habits, when applied in your life, certainly and gradually build your overall financial “health.”

Prosperity habit # 1: Saving: It was President Abraham Lincoln who said, “A penny saved is a penny earned.” Saving even pennies builds the habit of saving. Saving systematically strengthens the habit. This impacts the self-image, self-esteem and self-confidence.

You may start by putting “spare coins” into a can at the end of every day and by putting 1% of your wage into a savings account. The amount may be small but the habit will pay big!

As your savings add up through “compound interest,” you may consider other sophisticated investment instruments like buying shares in companies, taking out insurance, etc.

Prosperity habit # 2: Giving: Giving, mysteriously, even, mythically, works. Giving part of your wealth to others mathematically decreases your wealth, but in real life, strange as it seems, it increases wealth.

People who combine the habit of saving with that of giving seem to “attract” new job opportunities, promotions, raises, even money coming in from unusual and unexpected sources.

You may give to a charity, church, local civic project, food bank, homeless shelter, orphanage, etc. Giving regularly and consistently is more important than the amount given.

Giving can also take the form of volunteering your time on a project or needy people.

Prosperity habit # 3: Self-improvement: You can improve yourself by formal or informal education: reading, going to a seminar, following a webinar, going back to school, learning online, etc. Flopping in front of the television as soon as you come home from work and watching it till you fall asleep is a terrible way to spend “YOUR TIME”. Spend some of it wisely by deliberately and wisely investing part of it in self-improvement.

Do you know that “YOU” are the only thing over which you have a lot of control? Being an asset for yourself, doesn’t it make sense to invest time and money to improve it?

Grasping the unbelievable power of habit

While it’s easy to pick up or get into bad habits, to get out of a habit on the contrary is a herculean, if not impossible, task. Have you ever tried to control some habit of yours—smoking, over-eating, etc. and found after a short while that you abandoned it? That’s the incredible power of habit. This is because habit is second nature and that’s why it virtually controls our lives.

You formed your habits as a child growing up. And now they are a part of you, but not an inextricable part. Because as an adult you can choose to BREAK some habits and form others.


List ten things that you can do TODAY to extricate yourself from the clutches of debt











Street Talk

Thanks for good tips on investing in yourself. Taking away the bad; increasing the good. Building habits that build your future!

  about 4 years ago
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