Everything About Money Management ...

Whether we like it or not, money management is the responsibility of each of us, whether we are referring to our personal budget or to that of the company we run.

Wouldn't we like to have a magic formula or a simple trick to forget about money and how to manage it?

Well, the reality is far from the imaginary world. As in any other case, the management of financial resources requires organization. Regardless of the amount we report, a good organization of money, along with setting priorities will ensure a more efficient management.

Give yourself time to set your long-term goals. Maybe you want to go on a vacation, make a real estate investment or start your own business. In order to achieve these goals, money management must be very well organized. The more concretely you set your goals, the easier it will be for you to set the steps you need to take to achieve them.

Money management is most effective when you set the exact amount you want to spend on each type of expense. This creates a plan of expenses that will allow you to manage your costs and get closer to meeting your goals. Detail as specifically as possible the categories of expenses. A more detailed picture will help you decide how you will spend your money in the next period.

When we leave the formal education system, we most likely lack financial education. If it did not come from family, informal sources or is not even mentioned in entertainment sources, then it is the kind of thing that we do not even know we lack.

Later, when we enter a consumer-oriented economy as employees, it is difficult for us to define our role and know how to manage our own money. We tend to focus on extremes, one based on fear or one on spontaneity and compulsive spending, saying that life is worth living. But both options keep us from being masters of our own budget.

The benefits of a personal budget

A lot of people don't have a personal budget just because they don't have the knowledge to manage it. In fact, many assume that managing a budget makes them too old, too organized, too boring, or lacking in spontaneity. The irony, however, is that managing a budget does the exact opposite: it makes people want to be in control of their finances, to be able to decide without being constrained, to sleep peacefully, to see money as an instrument that works for them and not as a tool. greater power than them.

Revenue growth

The stories we grow up with glorify poverty and associate it with other virtues, such as Prince and Beggar. But when we are adults, we notice that having money is not a bad thing, but something that gives you access to a better education, safer means of transportation, quality medical care and access to difference. Financial comfort takes you higher in the hierarchy of needs, letting you focus on your spiritual and higher needs

Therefore, when the mentality of personal budgets and finances is changed, the increase in income becomes a natural consequence, especially because people can think of it as a goal - tool and not as a desperate need.

Reducing expenses

Expenditure does not always reflect our healthy needs or desires. Often we only have a reactive response to the stimuli around us, we are bombarded with advertisements for various products, constantly retargeted, coming to believe that maybe the Universe really wants and it is a sign to buy those objects. Although once we have a fair budget we will be able to afford more things, the peace of mind that comes with financial comfort will probably lead us to a healthier area where we will spend less.