Maybe you have a lot of— even too much— money. Maybe you have no money at all. Perhaps you are somewhere in between on the money spectrum, making just enough to keep you satisfied. Wherever you fall on the money Goldilocks spectrum, there is always room for improvement of your personal money management skills.
The most important bit of advice for any person who makes money (only children are exempted) is to do one’s best to live below one’s means. What this entails is not spending all of your money just because you have money to spend; just because you COULD afford a Ferrari doesn’t mean you should buy one. Instead, make smart, meaningful purchases (with the occasional splurge) and save as much as you can. If you have a nice savings cushion you are set for whatever crazy curveballs the road life my unexpectedly throw at you (that you can’t out maneuver in your Ferrari.)
Next, make a budget, duh! Even if you are raking in yearly dough in the millions you still need to have a plan for where all of that money is going. Having a plan keeps you out of trouble because it eliminates some of your free spending and gives your money a place where it can work the best for you. Manage your money otherwise it is free to run away from you. Have a lot to save every month or year? Put it in a high interest savings account and don’t spend it. Have kids that will most likely go to college? Start College funds for them now or preferably while they are still in the womb because it will take you about twenty years for your investment to have earned enough interest to pay for four years of undergraduate work.
Get your money under control, and then try not to worry about it. This may be impossible, but if you can eliminate stress from this one area of your life it will be extremely beneficial in other areas. For instance, 50 percent of all marriages now end in divorce, money problems and arguments over money being one of the main reasons people decide to file. Although money is certainly stressful and can be a huge problem, if you can have your finances under control you will ultimately be much happier. Note, you don’t have to make millions to have your money under control; rich people have arguments over money too! When you have your finances under control you can enjoy your life instead of thinking about how much everything costs and how you are going to pay your bills. Have a plan, stick to the plan, and then let it go. Trust that your plan will work!
The goal for any income is stability, and with these few tips you can hopefully reach financial stability. All of these things can be done by anyone, meaning you don’t have to spend money on a financial advisor to have your finances under control. Remember to live below your means, make a budget, and keep control of your spending relationships and you will be financially stable for life, no matter your income amount.
{ 7 comments… read them below or add one }
50 percent of all marriages now end in divorce because of money? Money does really destroy one’s life if they are infatuated, obsessed or addicted to it. So we really need to save money and spend wisely. Invest wisely as well. Nice article and nice tips.
You should control your money, not the other way around. Living from paycheck to paycheck means you’ve just lost control over your finances. You’re right, goal of income is stability so living within or below one’s means is good at least to get you started towards financial freedom.
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Wow, too much money. What a wonderful problem to have. It definitely beats the alternative. There are all good tips and your comment about stress is true. When you don’t have money saved, you are controlled by circumstances and tossed around like a tiny boat in a hurricane. When you have emergency savings then you are prepared for almost anything and that helps lower your stress.
Plagued with never enough money has always been my problem. I strive to be financially stable. Unfortunately my budget is like a card house. One snag and it all comes tumbling down. I do follow a strict budget. Even though my finances might no be stable, I do not live beyond my means. That brings more than the house cards down. It can bring everything down.
It’s not easy to live below one’s means when media and advertising constantly flash you with the latest gadget or brand you must buy, and of course there’s peer pressure of keeping up with the Joneses.
You have to become aware that in reality, people don’t really need much to live well, that what you think you need, you don’t really need it.
I think the best way to save money is to put it in the bank. If we stay with money in our pockets we will waste it faster. If it is in the bank we don\\\’t have that big temptation of spend it.
Dear CHRIS,
I liked what you said about Wherever you fall on the money Goldilocks spectrum, there is always room for improvement of your personal money management skills.
Continue this kind of articles because they are very good and useful, congratulations.
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