Remember the old adage: A fool and his money are easily parted!
Our advice today… don’t be that fool!
It’s easy to misuse your money, but that can lead you into debt and misfortune. Foolish practices include…
- Spending more than you earn
- Not budgeting the money you have coming in
- Making poor investment choices
- Failing to save for the future
Let wisdom govern the way you manage your money. Don’t be the foolish person who ends up in financial difficulties. Follow wise practices as dictated below…
- Take stock of all your expenses. On a monthly basis, know what you need for your utility bills, insurance, groceries, etc. and budget accordingly. Using your receipts and bank statements, take stock of every expense so you know where your money is going – if you find you are wasting money that is better placed elsewhere, start to form good habits in your spending.
- Find ways to reduce expenses. Use price comparison services to save money on your utility bills; make use of coupons and special offers at the supermarket; and commit to good spending habits in and around the home. Visit www.thesimpledollar.com for an extensive list of cost-cutting tactics.
- Pay off your debts. Make this a priority when managing the money you have coming in. Whether you are dealing with loans or credit cards (or a mix of both), focus on alleviating the debts you owe to free up your money elsewhere. Consider our advice on credit card debt here, icogoals.com, and then think about consolidating your debts to pay them off sooner.
- Be a wise lender. While paying off your debts is a must, there are times when we need to take out a loan or credit card. Taking an auto loan as an example, you should adhere to best practice by comparing rates online – see www.auto.loan – before making a purchase. Follow this practice with any type of lending you commit to, ensuring you don’t pay over the odds with your purchases.
- Invest your money wisely. Don’t invest the money you are using on your household bills. A wrong investment can place you in dire financial difficulty. Rather, use any spare cash that isn’t being used elsewhere and invest it carefully in stocks or currencies. Ensure you do your research too, using information we have around our site and other places online to help you understand more about investment choices.
- Set yourself financial milestones. When saving and investing your money, have an idea of your future goals. You may want to get your first step on the property ladder, invest in education, buy something expensive, or have money for your retirement. By setting targets, you will have a better motivation to make savings each month, and give you a handle on the money you earn from your investments.
Where do you stand with your finances? A foolish man or a wise man? If the former, take steps to address the balance, securing your present and future with the money you earn.