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.
The first thing that one must always remember when handling income is to never put it in just one medium. One has to know how to wisely distribute whatever income he has so that he can monitor the inflow and outflow of cash. Of course, the first thing he must do is put aside money to pay for all his monthly fixed bills like his phone bill, rent bill, and internet bill among others.
The next thing to put aside for would be the variable cost or costs incurred everyday to help earn money. These would include transportation expenses, food expenses, and materials or supplies expenses such as notebooks, pens, planners etc. Together, these monthly costs and variable costs encompass all expenses for the month.
After the expenses have been shaved, one now has a considerable amount of cash left. The first thing one must do is put that into an emergency fund which will be taken only during times of need. It is suggested that one put in fifteen to twenty percent of his total salary into a savings fund for emergencies like an accident or an illness.
After one has already finished putting some cash into his emergency savings fund, he has to make sure that he makes a separate fund for investments. As they say, the rich grow because they know how to make their money work for them. For average employees, this can also be done but through small scale investments.
If one is more conservative, he may investment in mediums that generate a fixed return. These investment mediums are often offered by banks and include time deposits and mutual funds. If one wants to have a bigger income and is a bit more risk averse, then he may want to take to the stock market. If he wants a safe stock market venture, then he may just invest in blue chips and leave them there until they make some income. If one is very daring, then he may try out the forex market which is the most volatile market of them all but the one that earns the highest and fastest possible returns.
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.
As one can see, handling income is not that easy but not too hard as well. One must just overcome his urges to spend and develop strategies on approaching his finances. Once he does this, he'll have no problem rationing his cash.
The first thing that one must always remember when handling income is to never put it in just one medium. One has to know how to wisely distribute whatever income he has so that he can monitor the inflow and outflow of cash. Of course, the first thing he must do is put aside money to pay for all his monthly fixed bills like his phone bill, rent bill, and internet bill among others.
The next thing to put aside for would be the variable cost or costs incurred everyday to help earn money. These would include transportation expenses, food expenses, and materials or supplies expenses such as notebooks, pens, planners etc. Together, these monthly costs and variable costs encompass all expenses for the month.
After the expenses have been shaved, one now has a considerable amount of cash left. The first thing one must do is put that into an emergency fund which will be taken only during times of need. It is suggested that one put in fifteen to twenty percent of his total salary into a savings fund for emergencies like an accident or an illness.
After one has already finished putting some cash into his emergency savings fund, he has to make sure that he makes a separate fund for investments. As they say, the rich grow because they know how to make their money work for them. For average employees, this can also be done but through small scale investments.
If one is more conservative, he may investment in mediums that generate a fixed return. These investment mediums are often offered by banks and include time deposits and mutual funds. If one wants to have a bigger income and is a bit more risk averse, then he may want to take to the stock market. If he wants a safe stock market venture, then he may just invest in blue chips and leave them there until they make some income. If one is very daring, then he may try out the forex market which is the most volatile market of them all but the one that earns the highest and fastest possible returns.
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.
As one can see, handling income is not that easy but not too hard as well. One must just overcome his urges to spend and develop strategies on approaching his finances. Once he does this, he'll have no problem rationing his cash.
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