January gone, February is passing. 2018 will soon be passing. How financial prudent are we?
If you don’t know how to make money, if you don’t have a financial instinct you may not know how to spend money and build wealth
Until you have an understanding to know the difference between asset and liability, you will still get confuse about what you should spend your money on. You just have to be Intelligent about what is called finances before you can fully enjoy it
Financial prudence basically means planning well in advance and investing in areas where you can expect high returns. It also means having complete knowledge about the money you have and how you can make it grow best. How can it grow.
#1 Don’t leave beyond your monthly budget. If you have not created one, create today. Don’t live beyond your budget, live within the budget and stick to this habit. Out of the disposable income of yours, raise the habit of saving more.
Capital investment and human investment are so Paramount as they yield exorbitant returns.
#2 Be a rational spending. Make buying decisions on the VALUE you get: If you are planning to buy a house, or a car or a motorcycle, your decision should be based on the value you get for the same over its entire lifecycle. It is ideal to plan the amount you are comfortable spending.
If your buying has no value and highest priority in the scale of your preference, then it becomes useless and your decision is irrational. Make a wise decision.
#3 Create a speculative/ contingency account. Contingency account helps you when there is an emergency or a sudden need for money. This way, you will not have to ask your family or friends for help or be caught up with emergency. Emergencies wipe out plans, get prepared.
#4 Planning for the long term: Financial planning means planning for the long term. Be it for a month, year or for your long term goals. Set aside certain financial goals for the long term and plan for the same. Maintain a and set aside a particular amount to achieve the financial goal. Planning for long term should begin now. You will have to work towards your goals and save and spend accordingly.
#5 Ready for seasonal discounts: When purchasing daily necessities or for big buys, the ideal thing is to wait for festive offers and make the most of them. Festival offers usually help you purchase at a cheaper rate. For instance. You can make the most of your purchase and save from the budgeted amount as well. Scout through different shops or online shopping websites to find the best deals and offers available for your purchase. It is ideal to wait for an offer than to make an impulsive purchase.
Napoleon hill said ‘If you cannot do great things, do small things in a great way’. Live a financial instinct habit and that great level will co!e through this small habit ways.
Read and digest. Journey of life cares.