Most people get their monthly salary and spend it on things that they do not really need. In the end, they would end up with no more money at the end of the month and will be forced to take a loan for emergencies. In order to avoid this type of situation, it is very important for one to learn tactical money management, which refers to handling your wealth strategically.
In order to handle money intelligently, one has to make sure that he rations and distributes his income to many different mediums. First of all, he has to make sure that he takes care of all his bills before anything else. He must take care of his monthly bills such as his telephone bills, his rent expenses, his electricity bills, his water bills, and his internet bills.
After one has put aside some cash for all his monthly bills, he now has to think about his daily expenses. These daily expenses would include his food expenses, his supplies expenses which include pens, planners, and notebooks for work, and his transportation expenses. His monthly bills and daily expenses combined are his total monthly expenses.
Now that all of the total costs have been taken into consideration, one will have a rather sizable amount of his salary left. The next thing he should do is to take out around twenty percent of his income and put it into an emergency fund. This emergency fund will only be touched whenever there are emergencies or urgent expenses.
Once one has already shaved off expenses and a saving fund, the next thing to do is put aside a fund for investments. If one would want to become independently wealthy when he grows older, he needs to make some passive income. The only way to do that is to invest early and reap the profits later on when they grow bigger.
Now, the first type of investment that one can go into would be investments offered by the bank. These would include money market funds, insurance funds, and also time deposits that have interest. One may also choose to invest money in the stock market if he wants to make more income, however, he may want to consider long term investing instead of trading if he is conservative. Lastly, he may also consider trading in the forex market if he is willing to study how forex trading works.
Whatever cash he has left, he may now spend on miscellaneous items and for his pleasure. This is what he can use to buy a new phone, buy a cake for his family, or take his significant other out for dinner. The remaining cash is now his to spend on whatever he wants.
If one wants to get out of the rat race and make some steady income, then he has to know how to handle his cash. Always remember that one controls the cash, not the other way around. If one learns the art of controlling the cash and not falling into a consumer mindset, then he will become wealthy.
In order to handle money intelligently, one has to make sure that he rations and distributes his income to many different mediums. First of all, he has to make sure that he takes care of all his bills before anything else. He must take care of his monthly bills such as his telephone bills, his rent expenses, his electricity bills, his water bills, and his internet bills.
After one has put aside some cash for all his monthly bills, he now has to think about his daily expenses. These daily expenses would include his food expenses, his supplies expenses which include pens, planners, and notebooks for work, and his transportation expenses. His monthly bills and daily expenses combined are his total monthly expenses.
Now that all of the total costs have been taken into consideration, one will have a rather sizable amount of his salary left. The next thing he should do is to take out around twenty percent of his income and put it into an emergency fund. This emergency fund will only be touched whenever there are emergencies or urgent expenses.
Once one has already shaved off expenses and a saving fund, the next thing to do is put aside a fund for investments. If one would want to become independently wealthy when he grows older, he needs to make some passive income. The only way to do that is to invest early and reap the profits later on when they grow bigger.
Now, the first type of investment that one can go into would be investments offered by the bank. These would include money market funds, insurance funds, and also time deposits that have interest. One may also choose to invest money in the stock market if he wants to make more income, however, he may want to consider long term investing instead of trading if he is conservative. Lastly, he may also consider trading in the forex market if he is willing to study how forex trading works.
Whatever cash he has left, he may now spend on miscellaneous items and for his pleasure. This is what he can use to buy a new phone, buy a cake for his family, or take his significant other out for dinner. The remaining cash is now his to spend on whatever he wants.
If one wants to get out of the rat race and make some steady income, then he has to know how to handle his cash. Always remember that one controls the cash, not the other way around. If one learns the art of controlling the cash and not falling into a consumer mindset, then he will become wealthy.
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