With the current financial crisis, it is important for us to learn how to manage our money wisely. We don't want to end up in the sea of debt, right? In order to prevent that, self control is needed most. We should maintain balance in our lives so that we won't be slaves of money and reap its consequences. The five steps given below are the ones commonly recommended by financial advisers. Let's follow these steps to manage not just the money but our lives, too.
Save. Sometimes it is hard for us to save, especially if we carry so many responsibilities and are earning less. But we must understand that by saving, we are assuring our future -- especially during drought times. Most financial advisers persuade us to save. So, let it be our priority to save. We may keep at least 10% of our monthly earnings and save it in a bank or other options for safekeeping. This will help us fight the urge to spend those funds.
Keep a budget. This can help us in monitoring, controlling and reducing our spending. A good budget can give us knowledge unto where our money goes. We must know how much our income is and try to spend less than what we earn. Knowing our limits, needs and wants also makes a big difference. With having a fixed budget, we'll be avoiding unnecessary debts.
Make a plan for the future. We must carefully consider our future needs. For example, if we are thinking of buying a house or apartment, having a mortgage at a reasonable rate is a good decision. If you're a family person, then having insurances is also wise. This may also involve planning your retirement.
Learn. It is said that learning is a never-ending process. So we must learn to acquire skills and take good care of our physical and emotional health. These things will pay you back so don't hesitate to do them.
Create balance. Balance is crucial in our lives. We must know our priorities and live with it. We must put money into its proper place. We shouldn't let greed take over our lives. Cultivating contentment will help us put off the undue love of money and all the problems that go with it.
Money plays an important role in our lives. But we shouldn't let it be the one to direct us. When managed right, money can give us freedom to pursue the more important things in life, like close relationship with family, friends and God. Living in this imperfect world tells us that money worries are inevitable. Because of this, we need to prepare ourselves, pray and hope for a better tomorrow.