Give Me That Bill Mzansi: Managing your money smartly

13 March 2015
Give Me That Bill Mzansi: Managing your money smartly Image : 332

We all want to live a debt-less life and enjoy the peace of being able to manage our money in the smartest way. It is important to achieve some level of control where our money is concerned, this helps us spend less than we earn which is a goal we should all try to achieve.

Sadiya Anjun (http://www.choiceofhomes.com) helps us achieve the skill of managing our money smartly with a few pointers. She suggests that everyone could use with a few basic facts about money. Below, we consider only three of these from her list:

Planning your income

Your total income should cover three aspects: reducing debt/ loans, paying bills; covering daily expenses; and savings, investment, insurance. Each time you bring home a check, make sure that it covers all these aspects. Ignoring one or the other will land you in trouble at some point.
Saving for the rainy days and the later days
You need to make sure that you save some amount consistently and systematically. Your savings can be deliberated for emergency purposes, a planned vacation or retirement. Saving for rainy days will help you sleep better at night; spend this money when it is pouring not drizzling. Ensure that you have a retirement fund that you absolutely do not dip into. Accept it: you are not immortal, your body is going to get weaker and you will need the money.

Investing smartly

Investing is a smart way to earn more money and gain security for yourself. But when investing you need to do it smartly and carefully. Analyzing risks, determining its feasibility on your current financial status, the returns you can expect and in the time frame in which the returns will be available, are some of the basics you need to consider before investing. If you are new to the game, then start out with small, minimal risk investments.

Money values

You can read a thousand books but it is you alone who can determine your values related to money. Laying too much importance or too little can make life difficult. Prioritize the various financial aspects of your life and allocate your income accordingly. Remember that ‘living up’ beyond your means for the sake of appearance or luxury that you cannot actually afford will lead you into trouble.
Read more but know that only with a few mistakes will you actually learn. Work out a plan for your self and stick to it. Try and keep things simple, live within your means and save for the proverbial rainy day (http://www.choiceofhomes.com/articles/rules-for-managing-money.htm).

Let us know what other ways you employ in saving money smartly?

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