Simple Steps to Make and Manage Money
Make and manage money; it’s very important to do those two things today especially in view of the tough economy. Have you ever heard the saying, a fool and his money are soon parted? That’s very true, no matter how much money we have if we use it incorrectly it will quickly fly away. And so first and foremost we have to learn how to manage money and how to make sure our money does not become our master and fly away. Now some are interested in how they can make money quickly, and that’s okay to figure out how to do that but no matter how quickly you make the money it is important that you manage it right. So there are five things that I will address in this article. Number one it is important to save. Number two it’s important to have a working budget. Number three it’s important to plan. Number four it’s important to learn. And number five it’s important to be balance when it comes to money.
The desperate one will say I need to make some money, I need to know how to generate some income quickly. While again that’s all fine and good if you can do it but remember a fool and his money are soon parted. So those who are too anxious and not smart can lose it just as quickly. I repeat this because it’s very important to be wise how we manage our money. I should also add that it’s important that we have the right viewpoint of money. Now some have said that money is the root of all evil. And some have even gone so far as to say, “well that’s what the Bible says. But actually that’s a misquote. the Bible actually says, “the love of money is the root of all evil.”
So in our desire to make money there are some fundamental things that we should keep in mind. The first is the need to save some money. Now I know that is not a very popular thing for people to do. Especially in our society that teaches to get it now and pay later. But even in Bible times people were taught to set aside 10% percent. That’s a good habit for all of us to get into no matter how much money we make. If you can set aside at least 10% and put that in the bank you will be a amazed at how much money you will have in a short period of time.
Probably one of the best things you can do is to set up a direct deposit from your job check to go into your bank account. Many banks at your direction will then aside a certain amount that money for you. So for example if you make $100 dollars and that goes into your bank account, the bank will automatically put $10 of that into a savings account. At the end of the year you will have over $500 dollars. And that’s just for earning $100 dollars a week. Apply that principle consistently and you will be amazed at how much money you will accumulate. And then when you accumulate some money you can invest the money.
The next thing is you want to set up a budget. I know that’s another nasty word. But believe me if you know how much money you have coming in and how much money you have to spend out each week you will go a long ways in creating some financial freedom. And also remember this goes right in line with the saying that if we live beneath our means we’ll always have the means. So determine ahead of time how much you need for every expense. Also set aside how much money you’ll need for just some pocket change. Once you put this down on paper you’ll see exactly how much money you should have from your paycheck after you take care of these necessary things. You may find you have more than 10% left over and you can put that extra in the bank or invest it as well.
Next thing is have a plan. Once again people will say, “I need to make money,” or, “I need some money now,” because they want to make some purchase. But if you have a plan in place, say for instance to purchase a house. And if you start to set aside a certain amount of money because you have a plan, before you know it you will have accumulated enough to purchase to put down on a house or car or whatever but you have to have a plan. By setting some money aside in savings you will have some money to pay for unexpected costs. And believe me unexpected costs will come up. If you have some money in the bank to pay for these things you will not throw your plan off for your future purchase.
It is important that you learn. Now what do I mean by that? They say knowledge is power, that’s very true so take some time to develop some money smarts. Just go to the library and check out almost any book on money management and pick up some simple tips. Anything you can pick out will help you in the long run. Talk to others who have done well with money. Get some suggestions from them on how they have managed their money. And once you begin to accumulate this knowledge and put it into practice you will find that you will have money and you won’t have to say, “I need to make money now”. Because what you will fine is as you apply what you learn your money will grow.
It’s also important that you be balanced. Now what I mean by this is that it’s important that we keep money in its place. Yes we do need money to function in today’s society. We need money for clothes, shelter, and food. We also need it to provide for some entertainment and relaxation. But remember money is not more important than people. Those who keep that in mind are the happiest people in the world. Keep in mind it’s not money which is the root of all evil it is the love of money which is. Well so far I’ve talked about how to manage your money wisely, now I think you’re ready to learn how to make some money.