7 Money Management Principles They Used To Become Wealthy

Take a look at the pictures above: and you would see critical money management skills in apt depiction.

Take additional step, glance through their story, and you would agree that they have not become wealthy by chance, but achieved the status, activating Money Management Principles as shortly would be recapped below.

They abided by tested principles both to conserve resources they already have, and to attract even more. As they say, money goes where money already is.

So, as much as the desire to become wealthy is welcome and desirable, but like all good things does not happen in a vacuum.

Wealth Creation is a principle which will deliver to anyone irrespective of age, gender or tribe. Be ready to play in that elitist league, following these 7 Money Management Principles. Note, you must have heard or read about some before now, but this writeup encourages you to follow through

1 First Create A Budget No Matter How Meagre Your Income

Budgeting will help you see with clarity your true financial situation. With budgeting, you can measure how much comes in and how much goes out. You will be able to save better and not spend unnecessarily. You could then, decide the lucrative areas to invest in to attract more income.

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2. Never Ever Buy On Impulse

Impulse buying is a killer of wealth – you spend on just anything that catches your fancy, not the things you need to move from where you are to where you want to be

It could be tempting when you enter a mall to run some errands and you stumble on that shinny piece of jewelry. Or if you are easily swayed by what you see on your friend’s or colleague’s body.

You know that popular quote that goes: feed your focus and starve your distractions.

Just put it to practice. Keep your focus on buying whatever things you need each time, not the things that attract you.

3. Always keep loose change

OMG, this is so underrated. I used to be one of those people who would never keep loose change in their pockets because I didn’t think it was classy or cheap enough so I always give them out.

it is super important to be kind, and reasonably generous but not to the detriment of your financial progress.

Much more, many people do not really attach value to loose changes but that is retrogressive. No matter how small or dirty looking, they were earned through dissipation of skill, time and energy and should not be discarded like an item without value.

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It is even better to be generous with it – kept at some convenient place, then brought out and arranged neatly and orderly and then given as support to some other persons in need.

Decide today for a place for your loose changes; go back there in two months time, and see how it would have grown.

4. Open A Second Account With No Credit Card

Money Management Techniques that work are those that require discipline on the part of the one who desires sustainable wealth.

You could open a second account but with no credit card, and see to it that you do not turn it into an errands account.

Deginate it as probably a receiving account for the period needed to compound the kind of money you need to tackle a project or procure an item.

What it does for you is that you are usually only with minimal cash to spend whereas you reserve is growing.

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5. Save, Real Saving

Here, you will need a target. Calibrate the month, quarter or year to enable you do this. Some people tend to empty the money they must have compounded in their second account that does not have a credit card, into the savings account.

It depends on what works for you. As a matter of fact, some people see the two as alternatives.

Term or full savings should be part of your Money Management Techniques for their value.

Decide the percentage considering how much you earn. It could 10% to 15 %of every money that comes in.

6. Give To Charity

Human beings are the greatest assets that anyone or project could desire. When you give to others, especially those in need, you are expanding your compassion space. You will enjoy goodwill from where you operate. It is even a command in the holy books to give. When you give, you will receive good measure. This is the predication of some foundations run by the genuine amongst the wealthy class.

7. Commit Yourself And Plans To Prayer

There is a popular bible verse that shows that after a farmer had planted her seeds, the enemy could decide to go and plant tares. The idea is to deny the farmer of his planned harvest. An item of importance in the money Management Principles involve committing your plans to prayer. God create all things and desires the best for us. In fact, there can be no counsel as safe as that of the Holy Spirit.