8 Ways to Better Manage Your Money by Piseth Kham
Money is the most alluring thing that any man can posses. It allows one to make purchases whether they are basic or luxury goods. In order to ensure that one has money to support his/her lifestyle in the future, it is important to learn how to manage and multiply the money one has wisely. According to experts, the hardest thing about managing and growing money is taking the first step and this first step marks the right path towards financial success and personal success.
Below are 8 ways to better manage your finance/money.
1. Make a budget
A budget acts as a guide and a road map that allows you to know where money will be used and how much. When writing your budget, you need to divide between the income and the expenses. You need to include expenses that occur every month even those that happen infrequently like car maintenance.
2. Record what you have spend
Even though you have created a budget, it is important to record your expenses. There are times when you may have an emergency leading you to spend money. Since it was not on your budget, recording it will allow you to include it in the next budget.
3. Set goals
When you set goals, it becomes much easier to set aside money not only for the present but for the future too. You need to come up with short term goals like saving and investing for a vacation or a new car to long term goals like saving and investing for retirement or your child’s college education.
4. Decide on your priorities
In majority of homes, the budget usually revolves around food, housing, bills, clothes, electronics, tuition fees and transportation. When making a budget, it is important to prioritize everything.
The key to financial success is “Pay Yourself First” This means that before you pay anything you need to set a side certain amount of money for your financial freedom investment account. This money can be used for cashflow generating investment or assets.
5. Make smart investments
You need to make smart investments that will enable you to secure your future. You can invest in the real estate market by buying houses or apartments and renting them out. You can also invest in stock that give good dividends.
6. Have insurance coverage
Insurance coverage can help to save you a lot especially when you grow old. Life insurance, health insurance, homeowners insurance and disaster insurance will help to protect your life and your property eliminating the chances of incurring huge debt in case disaster strikes.
7. Take advantage of discounts
When shopping for products and services, you need to take advantage of discounts provided by the sellers. This will allow you to save money as you will buy products and services at a slightly lower price than before.
8. Pay your debts on schedule
If you have a credit card debt or college tuition loan, when it comes to repaying, you need to repay as agreed with the financial institution. Having debts can seriously cut into your ability to save money as well as increasing your interest rates. You need to start repaying loans that have the highest interest first. Once you have paid them off, you need to proceed paying for the others until you have cleared your debt entirely.
At Money and You you will learn how you and the inner self inside you has the impact on your financial success. You can be the best at marketing, the best at real estate, the best at stock market, however, if your inner self inside you is someone who does’t deserve money and wealth it is hard for you to become successful financially. We invite you to experience our next Money & You in Malaysia at pm-leadership.net/moneyandyou/ or you can join our introductory and Money & You experiences sharing in Cambodia at pm-leadership.net/mnu
About The Author: A Money & You Graduate, Kham Piseth is the founder of PM Leadership, Cambodia’s leading seminar organizer on success, business and wealth creation. He gets famously known for starting his company with $ 480 and turning it into a national brand within one year. Piseth served as a Director Consultant of BNI Cambodia from 2013-2015. He successfully launched a BNI Chapter “BNI Cambodia-Millionaire Chapter“. He served as a President of BNI CEO Chapter in 2015. He acted as a Management Advisor with German Development Service (DED) in 2007-2008. He served as Program Manager for CDPO for almost five years. He has appeared on CNC, SEA TV, TVK, Hang Meas TV, Bayon TV, Radio Australia, National Radio, Phnom Penh Post and others.