Managing your money properly does not require a university degree in personal finance, neither does it require you to have a textbook knowledge of what management is about.
All it takes you to manage your money to achieve your financial goals and attain financial independence is just for you to follow certain rules of money management.
These seven golden rules can help you manage your money well if you practise them.
1. Pay yourself
Paying yourself first is the first golden rule you need to manage your money well. Apart from paying bills and taking care of other necessary expenses, you've got t start rewarding yourself too.
Put yourself on your payroll, and give yourself some financial reward for working for your future by paying yourself.
ALSO READ: 5 questions you should ask yourself before buying anything
2. Grow your income
To grow your income, you might have to consider a side business if your earning is not sufficient enough.
The good thing about this is that a side hustle does not only help you make more money, it helps you achieve your goals and improve your skills.
3. Spend within your means
Living a life that is completely devoid of financial stress and issues isn't easy, especially in a consumer-driven world.
And if you want to live a life that is completely free of financial worries, you sure need to make living within your mean a lifestyle.
If you want to wear designers like stars and drive the latest cars like they do, you've got to check your income. If it's higher than the lifestyle you crave, you'll surely be living beyond your means. Therefore, live according to your means.
4. Calculate the interest rate before you get a loan
A lot of people might think taking a loan to actualise personal goals is a bad idea. They believe using debt to actualize ones financial dreams doesn't sound right to them.
See, it's not that deep. You can take loans to meet some of your personal goals. It only depends on how you manage it.
Before you take any loan, you need to pay attention to the interest rate. However, borrow only when you absolutely need to and calculate the costs that you will be ncurring from borrowing
5. Prepare for when you'll no longer be able to work
This is very important. If you are still young and getting it, always remember to prepare for the time your working days will be over. This is why you should have a financial plan that will be working for you when that time comes.
6. Develop a saving plan
Saving helps in more way than one. To grow your wealth and meet your financial goals savings should not be optiona
7. Always track your spending
Tracking your spending helps you identify some financial issues that you can easily correct, which will make a huge difference to your money matters.