Advice and Importance of Money Management

Money Management is crucial in helping you achieve a greater level wealth. It is the stepping stone for many potential millionaires, but it is the downfall of those who are perpetually in debt and sing sad songs of bad ridden luck. The truth of matter is everyone must exercise a great degree of money management, there are no exceptions!

You need to have plan for your money. Budgeting is key in this regard. Note down where you want to spend your money and when you are going to spend it in order to keep your aspirations of that new car, home renovations or your child’s school fees. Sit down make a monthly or even weekly (for those that may have more serious money management problems) plan and cut down on unnecessary expenses.

For those that have read any of Business Tycoon Warren Buffet’s books detailing how he has become a successful billionaire you will be well acquainted with some of key policies.  Warren Buffet too obsesses with money management as he invests in businesses run by managers who obsess over the tiniest costs. He once acquired a company whose owner counted the sheets in rolls of 500-sheet toilet paper to see if he was being cheated (and he was being cheated). This scrutinizing tactic can help you make profits, save money and help you make further money as you will be able to expand on items for your budget.

 

Another important aspect to retaining money and making more money is to avoiding paying creditors every time your pay check arrives. Living on credit cards and loans won’t make anyone rich but will effectively have the inverse result. According to Warren Buffett he has never borrowed a significant amount — not to invest, not for a mortgage.  He say the key is to negotiate with creditors to pay what you can. After this stage according to Warren buffet “You work on saving some money that you can use to invest.”

 

The key to anything that you plan is to start as early as possible. Get your diary out get a pen and start. Leave nothing out big or small and watch your life become a lot easier as you have to worry less every time you wake up, start the day knowing your future seems a lot more financial secure.