Essential Money Skills

It has been established by lots of speakers that poverty is not the lack of money but the squat of ideas; money making ideas. Even the best ideas in the world are worthless if they are not put into use. Wealth creating ideas when properly invested and put to use will certainly put money in your purse. So, perpetual lack of money is a big signpost of poverty.

Handling money

There are three perspectives of handling money; making money, multiply money and managing money.

Making money

If you are not getting then is your problem; maybe you lack implementation of ideas or you lack personal motivation, it does not necessarily take money to make money all you need it to do the right thing. To make money:

You must eliminate I can’t – the only thing you can not do is that one you think you can not do. See that you accomplish great task and becoming a front liner in life.

You must work – even God said we should work out our salvation with fear and trembling. There is always a field that is meant for you to cultivate if you don’t, then it will waste and if it is wasted then you will certainly fizzle out in poverty.

You must develop skills and apply it productively to solving problem.

You must take necessary risk.

Managing money

The problem of many is managing money, they make money but managing it is very difficult, you can be making money all your life yet die a poor man. For instance, if you are a bad manager, the more you make, the more you spend. It takes more to manage than to make.

Managing is about the controlling the use of money to serve your purpose and in other eliminate waste. Now the money managing skills:

You must have a budget – budget is to control you spending and to place limit. In the budget you must make sure you spend below earnings.

You must spend less and save more – that is using the proper money control formula: SL + SM = PMC.

Where:  SL = Spending Less

                SM = Saving More

                PMC = Proper Money Control

For low spending and high savings; buy lower prized goods – Nigerian ladies fixing human hair of about 250 thousand Naira and they don’t have any savings. Students using a cell phone of hundreds and thousands of dollars. Cut down your spending attitude and save the surplus, you must try to balance savings and spending, rent instead of buying something you will not use for long, minimize fun and entertainment, don’t dine out eat in, do it yourself – hiring the services of a dry cleaner and car wash can be a waste of resources sometimes, don’t spend your pay rise save it, buy in bulk, avoid gambling and betting etc.

You must shun destructive appetite – a young man at the age of 21 became a world renowned pugilist, at 35 he has made 350 million dollars but at 40 he became completely broke, today he is 70 poor broken and sick. He has a destructive attitude – for every color of suit he had, he bought a Ross Royce and a Ross Royce worth millions of dollars.  

You must seal several sources of money leakage – sources of money leakage are; shelter and apartment, transportation, house bills and expenses, luxury, sharing money around, impromptu buying, giving etc.

Multiplying

Multiplying money is the ability to increasingly amass money. The capacity you develop to build up and increase your income rate. You can multiply money by following the following steps:

Analyze market trend and invest wisely – don’t just do a thing because others are doing it, you have to be analytical before venturing into any commerce.

 Diversify when necessary – pursue one business idea at a time. When you have grown one idea, you can now take another, and then another continuously but within your mental capability. The future is volatile than ever so you need more than one stream of income.

Take greater but necessary risk and venture into it – greater necessary risk is what taking so as

Have a good sense of the future – know what to do at each point in time. Know when to change a course and redirect the course.

You must have to increase the income capacity of your business – read our article on how to increase income capacity on this blog. Do all it takes to improve on your money making capacity.

Some tips on essential money Skills

o   Pay less for purchase and save the surplus

o   When you reduce your spending increase you savings

o   Build a long term security by living less than your earn

o   Rich mentality sees money as a seed but poverty mentality sees money as a fruit to be eaten

o   Have money generating plan

o   Don’t live or hope on other people’s wealth to become somebody in life

o   Get direction, get goals, and follow the right course to wealth generation

o   Don’t cheat your way up, work your way up.