MONEY MANAGEMENT SECRETS

What is Money Management?

It is the ability to handle or direct money with a degree of skill or to treat it with understanding and care. It’s to be a steward over it and to add value to it. Therefore, the goal of money management or stewardship is to improve the value of your money.

It was P.T. Barnum an American showman, politician and businessman that once said “Money is the excellent slave and a horrible master”.

This short but powerful statement of his summarizes the major lessons anyone can learn on the subject of money. That lesson is simply this – you can either choose to be a slave of money or master of money. The choice is absolutely yours. And this is irrespective of your tribe, nationality, level of education, age, sex, religion or even your family background.

Your choice to be a money master instead of a slave begins with an investment in your financial education. A financial education that encompasses the following money concepts – Money Minding Secrets, Money Making Secrets, Money Management Secrets, Money Multiplying Secrets and Money Mastery Secrets.

However, for the purpose of this paper our focus here shall be limited to Money Management Secrets –How to develop a good savings habit.

6 Steps to Successful Money Management

1. Budget It – Have a Wise Plan for money even before it comes.
2. Invest it – Put it into profitable ventures for more monies.
3. Save It – Prepare for unexpected opportunities to exploit.
4. Use It – Take care of your needs and the needs of your family.
5. Record It – Monitor your Cash flow (Income & Expense) daily.
6. Avoid Waste – Don’t engage in riotous living to impress others and prove you are rich.

Finally

I am sure you can now see that it’s not just enough to make money. To gain mastery over money, you must also know how to manage it very well. And the good news is money management is a skill that anyone can learn. Therefore, as you learn and put these lessons to practice, remember that the goal of money management is to add value to what you already have irrespective of the size.