Mismanagement of funds is one problem that causes seasonal wealth. Seasonal wealth in the sense that you have money today and tomorrow you do not have because of inadequate planning, extravagance and poor management of funds. Growing up, my mother used to tell a story that was titled “ Had I Known”. This story was about a man who used to work as a federal director of Coca-cola company. He made a lot of money from the company and was known to be one of the richest men in the states as at that time. During these years of bloom and wealth, he forgot that his Job was a contract Job and would only last for a period of seven years. He failed to plan for his life after his job.
His misfortune came almost immediately after his contract was terminated. He stopped getting the kind of money he used to get but at the same time did not reduce his expenditure, so his cash outflow became way more than his cash inflow leading to loss of his wealth over time. His money went away because of his spending habits, he did not invest in anything during his glory days and because of that, he went back to square one with age not on his side to put his life together. He made it his duty to tell his story to young entrepreneurs and young people as a whole, as he wept “Had I known”.
This is a kind of story we would not want to tell young people when we are older because its a sad one and one caused by extravagance and poor money management. Below this paragraph are some three strategic ways you can manage your funds for sustained wealth.
Your income hhould be greater than Expenditure
This is simple mathematics. When you spend way more than you earn you may run into bankruptcy. Always have a budget and also develop a habit of working with your budget. Cut Expenses where necessary, only purchase what you need not what you want. Avoid extravagant spending, that doesn’t suit your budget.
Make Good Investments
On the national level in economics, savings is equal to investment but on a personal level in our daily lives savings is not equal to investment. When advised to make good investments, this doesn’t mean you should go and start saving, don’t get me wrong, it is important to save money but saving money doesn’t generate revenue and thus is not an investment. Making good investment is a very important strategy in money management, as a good investment would help grow your funds and keep you in wealth.
Ensure new money meets old money -Proper Savings
This is trick my father use to employ and advice people to employ because it has always helped him sustained his wealth. This trick is basically making proper savings and judicious use of funds. It is the idea that you should plan into the future and make sure you do not use all your funds in your savings account for unprofitable things. This trick basically means ensuring you always have already existing money so that any money you make in the future comes and meet the already saved one. This is a strategy that has helped a lot of people sustain their riches as they plan ahead of time in ways that would generate more money, as they do not want to have an empty account when the new money comes.
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Great advice Yandot – and nicely written if I may add 🙂
Coming from North America originally, I’m always amazed at how debt ridden of a society they (we) have become. It also really strikes me as odd – as you point out – that governments do not adhere at all to this principle … but that is maybe a thought for another post. Personally I have issues between savings and investments and how to allocate (and being an early investor into crypto at the time of the bear doesn’t help, lol)… that said, I realize for some that saving isn’t even possible… I think that this should be something that more people should look into, but it seems that for whatever reason this concept has really not been passed down properly in the modern era. This post was a nice check for me – thanks for that 🙂
Hey buddy!
Thanks a lot for your advice, Investment also has a high risk. We need to be more careful to managing our money! Thanks for sharing your experience
The strategy for managing money is very useful
Thanks for sharing
Thanks for your reading
Tambong coin…
Good work..good information
Thanks for sharing
Thanks for reading
Good like money management, @yandot Thanks for sharing
A very important topic you touched here !
Thank you!
Management is the key to success in any business. Thanks for sharing
@yandot !!!
That is right! Thanks for you reading
That geupap cukop mantap
Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
I want to result happiness only then. That is highly risk with investment
Its all about knowing your numbers! Never let expenses exceed income. Easy
Great! Thanks for you reading
In digital era we need to good management of our income, is the massive challenge today. thank you for sharing
That is our life with money management, that is have a lot motivation and innovation how to manage your money with investment! Thanks for you reading
Very informative @Yandot
Thank you viper!
Nice post
makin banyak kita tabung uang digital maka makin banyak harapan untuk memperoleh hadiah/ keberuntungan
Iyaa benar sekali bro, pande2 lah kita kelola uang heh
Great tips for money managament! Thanks for sharing them
Thanks! Glad you like it
“Your income hhould be greater than Expenditure”
It’s ridiculous how many people fail at simple mathematics
Yeah many people dont know to manage their money!
Financial literacy really should be a greater focus on school education. Thanks for the sound advice @yandot.
Yeah coorect man! Right now we need to educate them
Nice information about money management, thanks for sharing bro @yandot
Thanks for your reading bro
Dear friend thank you for sharing with us this wonderful information with us.
Five stars for your efforts.
Thank you.
Thanks for your support! Appreciated it
Cool advices. I think savings is a practice most people are not that accustomed to, mainly because everywhere we go we are stimulated to spend not save.
Yeah that is correct! Difficult to try without investment
You got a point, @yandot! No matter how much money you have, it’s how you use them that’s important.
That is depend with our life bud! Everything is starting from our desires
Dear friend you puts tonnes of information here and it’s very interesting, I wish thank you for sharing this with us.
Given five stars for your writing.
With love and respect.
Thank you dear friend! Apprecieted your kindness