5 Steps to Money Management

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Ok, this is about your financial management. Many people wants to be a Millionaire, but end up with nothing. Here are 5 financial management tips that can help you boost your income. I get this idea from Adam Khoo (one of Singapore youngest self-made Millionaire). Frankly, Adam is one of my favorite gurus, I’ve got almost all of his books. Before I tell you the 5 tips, you need to know some rough idea about money management first.

There are people who earn $1,000 every month, and claim that it is not enough (this is true though). However, there are also people who are earning $10,000 each month, and still claim that it is not enough. Why is this so? This is due to poor money management. Therefore you must know these 5 tips before you can increase your savings and reduce your expenses. You must spend time and effort into your money management, only then you can be rich. If you don’t know how to manage your money, then they will slip through your hand easily.

Don’t expect that this will happen automatically. Every rich people knows that it is their wealth their money, they need to manage them at least one hour a day. But for average people (who are not yet rich), they spend less than 1 hour each month managing their money. And that 1 hour usually is spend paying bills. That is why the rich is getting richer while the poor is getting poorer. But here are some tips that can help you manage your money.

1. Always Ask For Discount

You know, most of the stores that you bought your goods from, usually they are not fixed price. If you open your mouth and ask for discount, there are 70% of chances that you will succeed. Know this fact, if you have 10% of discount, you know what this means? This means that you have got an immediate 10% returns on your money. Over a long term, you will save more money than you can expected. (Psst, use the money you save and invest in money making strategies or anything that will make you richer.)

2. Always Ask For Receipt

Why you need a receipt? One reason, so that you can track every single expenses in the end of month. Depends on what goods you bought, if possible, claim it as business expenses and get a tax deduction.

3. At The End Of Month, Record All Your Expenses

You must record all your expenses in your personal financial management sheet. Be it in your note book or you can record it in your computer, with Excel. By doing so, only then you can track where your money has gone to.

4. Use Credit Card Whenever Possible

This is of course you must clear all the payment before the due date. At the end of month, you will receive statement which will make easy for you to record your expenses. In addition, many credit cards offer prizes if you use them more.

5. Update Your Income Statement In The End Of Month

Try to do a personal income statement that record all your incomes and expenses. Update it each month. You must use a system to track where every single dollar goes. Only when you know where your money is going, can you take steps to channel it to your savings and investments.

You must develop this money managing habits to get you richer. Although doing this everyday may sound tedious. But it is very important to know where your money has spent and how much you have saved. Many businesses failed because they don’t know how to manage their financial and money properly. So don’t be one of them! To your success.

Source by Shawn Lim

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