As we all know that so many people are slaves to
money. Money dictates the way they think, speak and act. They are very excited
when they have enough money in their pockets, and sad when their pockets are
empty. They are not themselves when they make some good money. They lose their
sense of good judgment and the ability to be self-disciplined and can’t say
‘NO’ to anything that appeals to their senses. They are mastered by their
money, instead of being masters over it.
Do you agree with me that Making Money is Important?
But when you don’t master money, you remain a slave to it and work hard forever
in order to make it. You need not just to know how to make money but also how
to keep it coming and how to make it work for you. You need to be in full
control of all money that enters or leaves your hands.
People think that to be in
control of your money is to be able to decide when to spend what amount of it.
They think it is about having full right over your money. This is a wrong
perspective. When you use money in a way that you live to always regret your
spending; you have very little or nothing to show for the money you make; you
are unable to break out of want; and your lifestyle is dictated by the money
you have, you are a slave to it. Here below and 8 wonderful ways of being in
full control of your money.
1. Change The
Way You See Money
Everything about money and
the ability to handle and grow it begins with the way a person sees it. You
will remain a slave to money until you build the right conceptions about money.
For example, the person who believes that money brings happiness will spend a
lot of money on things that are not very important just to stay happy. At the
end of the day, he would have misused his money.
Your understanding that
money is meant to facilitate life and make the world a better place for
everyone, makes you able to maintain your calm even when you possess much of
it. Remembering also that you are a steward of the money you have, and don’t
own the money in your hands, will make you live a more humble life even when
you are very rich. See more on these misconceptions by reading ‘How
Not To See Money If You Want To Be Rich’
2. Understand
Your Cash Flow
Some people earn money
monthly, some daily, others per assignment and others still, have no regular
pattern of earning. Being clear on how money flows into your pocket could be
simple but very important in mastering money. When you know the next time to
expect money and how much to expect, you will be better placed to plan your
finances and be in control. If you have a very irregular earning pattern, you
need to plan based on worst case scenarios and not based on the best.
Understanding your cash flow
also entails understanding the sources of your income, how reliable they are
and also understanding your spending and how much of your income goes to what.
You need to have all these recorded somewhere and begin adjusting from there.
When you are not clear on your cash flow, you could even budget on your gross
income instead of your net income.
3. Set
Financial Goals & Strive To Achieve Them
If you are thinking of what
you want to be in the next 5 or 10 years, then you must also think about how
much wealth you should have made by then. Wealth does not just happen like an
accident. People who become wealthy take time to set financial goals and plans,
working hard daily to achieve them. Only when you have clear financial goals,
will you begin to get disciplined about how you spend money. I have noticed
that people who earn much and have financial goals, try to minimize as much as
possible, their spending.
Set a financial goals for
yourself which you hope to have achieve by the next 5, 10 or 20 years. Fix your
eyes daily on them without giving room to distractions that could come even
from you. Set long-term, medium-term and short-term goals and make sure they
are smarter.
4. Develop A
Budget And Keep To It
As soon as you have a
financial goal for a number of years, the next crucial thing is to have a
budget. Most preferably is to have a budget that covers the period between your
earnings. So if you earn money monthly, set monthly budgets. Your budget should
include all that you intend to spend during that period and what you will be
spending for. It will also do you good if you indicate how important that which
you will be spending on, is.
When budgeting, also
consider what has to go for savings, investing, paying of debts and
emergencies. These are all very important aspects in mastering your finances.
The ultimate thing about budgeting is you sticking to your budget as much as
possible. Sometimes you will need to be dynamic and deviate a little from your
budget but be very sure that was is necessary to do so.
5. Take
Charge Of Your Spending
I am sure you have heard
people say, ‘spend less than you earn’. This is a common saying and many people
think they adhere to it. But their claim is far from the reality because many
people spend all they earn before they can be sure of their next income.
Meaning they have to get into debt to keep them till the next time they get
money.
Taking charge of your
spending entails not spending emotionally. It means spending money on things
that are really important and budgeted for. If you are prudent enough to get
into the details of how you spend your money every month, you may realize that
sumptuous amount of money goes into buying things that are not too necessary.
Before you make the next buy, ask yourself, ‘Do I really need this? Could I
still do without it? Does it fall within my budget limit for expenditures?’
Your answers to these questions should lead you not your emotions.
6. Eliminate
Wastages
Lately, I realized how much
is we waste from our income. We spend money on things that are unnecessary and
can be avoided. We pay for services we don’t use, pay bills we could avoid, in
cure costs that are unnecessary, etc. Some of us have accounts and takes bank
services which don’t generate any interest over time and we hardly make use of.
Funny enough for some, we rather pay interest at the end of each year. All
these things make us poorer. See my post titled ‘Meet The Ten Thieves Of Your
Finances’ as I reveal more of the financial wastages you need to avoid.
7. Refuse To
Get Into Debts
As I have shared in many of
my post titled ‘How To Attract Money’, debt is a habit that you must kill. It
enslaves and demotivates you from working hard to earn more. This is contrary
to most people’s views that when you are in debt, you want to do all you can to
make money and pay your debts. If it was true that debts motivate us to work
harder, we will all want to have more debts always.
One of the decisions you
need to make is that of getting completely out of debt. When you don’t have to
budget anymore for debts owed, you are freer and can better master your income
and grow it.
8. Set A Savings
and Investment Plan
Having savings and
investment plans could not be left out of this list for obvious reasons. I have
mentioned them above when talking about setting financial goals and also when
budgeting.
One reason why people lose
control when they have much money is because they don’t know what to do with it
apart from spending. They lack financial intelligence. When saving and
investing money becomes a way of life to you, you eliminate loose cash and
consequently eliminate all unnecessary spending. This is a decision you must
make and when you are faithful in it, you will soon be in wealth.
See
more:
I wish you the best as you
adhere to these wonderful strategies that will help you master your finances
and grow wealth. Your comments will improve this post because nobody knows it
all.
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