10 Free tips to help you and your Finances
You don’t need money…….
Hey, hold on, just before you slander me…
Money itself has no value, as one of the characteristics of money is it must have no intrinsic value, follow me!
Money is a means to an end,
Money is a Means, not an End. … However, if you recognize that money is there to help you meet your needs and reach your visions, then it has been seen that money actually can contribute to happiness. But that’s because money is not the end goal. Money is simply a tool that helps us achieve our vision, and gets you what you desire.
Money itself has no value of its own; in simple English you need money for something. Accumulating money is definitely to get something of value in return, whatever it may be. The earlier you understand this the happier your life begins to become. Like my mentor Fela Durotoye said something about wealth, he said “when you solve a problem you create value, when you create value you create wealth”
In our journey in life I’m sure many of you have always strived to get money, but it seems the more money you get the more it seems you need to get. Or rather you can’t keep hold of your money, King Solomon the wisest man who ever lived said money has wings and it will fly away if you don’t have mastery of it.
Money has a spirit, and it carries no character of its own, like Sam Adeyemi said money carries the character of who possesses it at each particular point in time, I’ll give you an example when money is with the central bank at that point it is Government money, when it leaves the hands of the Central bank and it is used to pay salaries of government employee probably paid to let’s say Mr Adegbite the money at this point carries the character of Mr Adegbite and whatever he decides to do with the money if he uses it all as a gift to me the money at this point carries my character and thus it is good money. If a thief owns money it is a thief’s money but once it leaves the thief’s hands to another I.e. church it becomes church money.
It is therefore important to be able to gain mastery of money, else we would lose money easily and also find it difficult to even gain money, and money is very important to meeting our demands.
From the point when you wake up each day, you are spending money, you brush your teeth (tooth paste cost money), you have your bath (you’ll pay water bills), you eat breakfast (you are spending money) till you lay back to sleep at night you keep spending money even if no physical cash is leaving your hand expenses are been met.
In a bid to be of help, and also share my researches and things that have worked for me and my mentors, I have put together this practical steps to gain mastery of your money and if you carefully follow them you will be a master of your money, your money won’t fly out every now and then, you will be in control of your money.
They are easy and applicable; everyone that has tried it has come back with testimonies.
So what are they?
Keep a record of your finances/expenses:
There is no better way to track your own finance better than by keeping a record of it, you need to know where your money is going and what it is been spent on. Ability to do this has won you about 60% ownership and control of your money. Yes I said that, when you know what you spend most of your money on it becomes easy to curb other expenses and also focus what’s bringing in more money. Ignorance is no defense.
Buy Quality over Quantity:
someone may be wondering why this is a point here, yeah I’ll prove it. I recommend you buy quality products over quantity or rather inferior products mostly as a result of cheaper price but a wise man said “the quality of a product is what is been enjoyed long after the price has been forgotten” when buying and you have the option of going for inferior goods or quality good always and I say it with all sense of responsibility always go for quality.
How will this help you gain control of your finances? In 2011 I bought some corporate shirts, inferior ones because of the price, I got about 8 and I was excited I had plenty shirts but as at 2012 I was already thinking of buying new shirts, why? They were wearing out and I needed to replace them, thereby spending more money. But with the quality ones I got in 2012, I still have them as good as new. This may sound like a little, but I guarantee you that buying quality will save you from buying always; it can be so frustrating especially when you are buying to replace spoilt items, or even consider the cost of repairs.
Reduce your expenses:
This is another way to gain mastery of your money, reduce your expenses by all means. If it isn’t worth it, then don’t spend on it. Avoid impulsive buying; always have a list of things you need to buy when going shopping. Especially in a world of digital money, credit cards and all, it is easy to spend without even knowing money is leaving your account, just swiping your card at the POS, online payments and all, this calls for strict caution on expenses. Watch word should be discipline. My God, it is so easy to spend now, I can buy songs off iTunes on a bored day from the comfort of my
Save a portion of your income:
I read from the book “the richest man in Babylon” that you should save 1/10 of all your income. No matter what happens or what expense you may need to meet. If you ever desire to be wealthy one day then you need to save. Don’t just spend money on expenses. If you will like to have extra money to spend on vacations, travels, buy all you need and even want, then you need to learn to save. It’s not too late to start saving no matter your age right now.
A part of all you earn is yours to keep. Just take saving as paying yourself first! You deserve it. And I have found that a very good way to help you save is to get a saving goal and probably an accountability partner to help you achieve your savings goal. You know, just saving without a goal can be monotonous, boring and at the end of the day, you spend all your savings on something irrelevant and then you have to start over again. But with a goal in mind it is easier.
I use a savings box personally also apart from saving in the bank, I’ve found this helpful as it helps prevent spending change with you, and after some months or even a year, you can open it and save it again, this time in something that gives interest, it should be a lump sum by then.
Invest your savings in assets and your returns also:
it is not enough to save; you need to take a step further to create investment. Investing means for your money to work for you even when you are sleeping, that’s the best way to create wealth. You can’t work 24/7 no matter your level of energy, yes I said that. If you do that for 1 straight week, I bet the following week you’ll spend it in the hospital. But your money can work 24/7 so why not get it to work. What are you waiting for?
Avoid borrowing except it is a good debt:
one way to sure end up in poverty is to keep borrowing to run expenses, like I always tell people expenses will never finish so far you have blood running in your veins you will need money for something, I wrote in one of my blog post “thank God for hunger” if you feel you can live in a cave to avoid expenses you will soon be hungry. Instead of embracing the habit of borrowing, why not do without it. Plan your finance.
Plan your money:
yes create a budget, I find this very useful and important as I’ve been using this for a long time. It gives you the ability to avoid impulse buying, what is impulse buying? It is buying without forethought, spending without planning for it, or spending without a budget or out of budget. If you plan your money and discipline yourself in line with it, it will help you avoid wasting your money on irrelevant things.
Read books on financial literacy:
A wise man said you are what you read, howbeit it may, I have proof of it, what you read shapes your mind and gives you a mindset about a particular topic. If you are found of reading relevant books on finance in a short time you will be well informed about the rules that govern money. Apart from experience, one of the best ways to get a hold of money is to read about it, from people that have had experience with it. Rather than fill your minds with chunk of irrelevant information, spend a good portion of the day reading about money, oh yes it is that important except you don’t want it.
Keep the right association:
keeping the right association is just as important as reading the right material, I actually think keeping the right association is even more potent in filling your mind with information. A saying goes, “if you walk with five wise men, you’ll be the sixth, if you walk with 5 millionaires, you’ll be the sixth, and sure if you walk with five fools you’ll be the ….., let’s move on.
Your association determines the kind of information you get, and the information you get determines your level of reasoning. If you are always hanging out with people that are very critical, unconsciously you would start been critical too. If you hang out with people that are financially prudent and in control of their money, you’ll soon start been in control of your money. But if you spend your time with money wasters, very soon you’ll find no fault in spending 80% of your income on invaluable things…..you name them.
Open up multiple sources of income:
oh yes, how people survive on one stream of income, in this current economy. It is too risky to survive on a single stream of income, no matter what you are earning, as a matter of fact if you are earning a lot and haven’t invested it in a business or venture you are robbing other people of sources of income, that’s by the way. Open up an extra source of income; at least have two sources of income, if one doesn’t open another will. It’s not one road that leads to a city and the lovers will agree it’s not one way to win the heart of a woman, sure right! Why will there now be only one way bring in money for you? Get out there and create something else for yourself.
Author: Victor Adeyemo
Victor Adeyemo is a Leadership and high performance coach, an Event decorator and MC. He is the team leader of Leaders Digest