The way to financial freedom is not always paved with gold. You need first to have a fight with the rough stages and develop skills you’ll need in the future. One of the best things that you should know is: BUDGET.
Budgeting is an essential element for you to be a successful man in any field that you are doing. But if you won’t take a time to have money management or budget, you will always start every now and then but you will lose the battle of investment, savings, and worst, become a financial freeman.
The Money Management School: Budget Essentials
Here is a simple budget procedure that any simple guy can ever do. Take a time to put in your heart and learn from the best lessons.
- Record the Expenses. Most people are wasting their money over things that they don’t actually need at the moment or in the near one year. It is a bad habit of spending. If you want to become a millionaire or at least a financial freeman, have a single book. Write down all you’re spending. You write the cost of your expenditures. This way you will be able to track down the priority that you have.
- Make a Category for Priority. You categorize your expenses. You paid your bills – electric, water, telephone, and many others. You put them in the record for you to see the priority at once. Did you spend your money over things unimportant or you can easily see in the category that you spend only for the priority matters.
- Cut Proportions. You have known your expenses and your priority. You take time to cut them into proportions. Instead of spending your money over your car’s polisher every week, cut it to twice a month. There are few things in life that you cannot live with but there are many things in life that you can live without. You throw those low priority materials and put them sometimes – if you have enough excess cash.
- Plan ahead to spend ahead. Spending comes in handy. That’s the maxim. You spend when you see something. A bad ordeal. You don’t need all things that you see. You better write down your expenses for the next month. Be sure to write only the priority. Do not overestimate. You are making yourself an excuse to spend the excess budget.
- Invest now. Investing on something is very important. You cannot just send your money to the club. That’s stupid and idiotic. You can invest on stocks, forex, and many others. Your money will earn a sizable nest that you can use someday.
It is really a sad thing to spend more than what you can get. It is very important to have the best of life. But it is important to pay only for the things that you need. Make a good list of your expenses. You will soon forget how you spend your money. And in the middle of the night you will ask, “Where my money went?”