PHILOSOPHY OF MONEY MANAGEMENT

There is no confusion that we live in a commercialized society where everything comes with a price tag. Therefore, money management is a crucial skill in the modern-day and world. But sadly, no one is taught in school about finance management and upcoming monetary challenges. Everyone must learn to develop their philosophy regarding money and resources. Money has long been a topic of taboo in social circle. It is considered rude to discuss one’s income. But one should be encouraged from a very early age to talk openly about money and the obstacles of not having enough of it.

Happiness and Money: Money essentially brings happiness. There is hardly anything that money cannot buy. Those who know how to invest and how to save efficiently can reap the benefits. You want to have two vacations every year to your favorite destinations, but the lack of money management skills will not allow you to do that. People with low income are often diagnosed with clinical depression. Start seeing money as a tool to create happiness.

• Invest in personal happiness; take long-vacations and buy stuff that makes you happy.
• Help less-fortunate children by donating money to a trustable charity.
• Support loved ones with money to help them move forward in life so that they can help others as well.

Security: Money gives a tremendous amount of security that allows inner peace. Those who do not know where their next paycheck is going to come from, suffer a state of anxiety because they do not have a safety blanket.

• Create an emergency bank account to deal with unforeseeable situations.
• Buy your own home, apartment instead of renting out. It will not only be a valuable asset in future but will also provide a sense of ownership.
• Have the insurances such as health insurance, house and car insurances updated.

Create a Budget: Most people do not have a sense of direction in life, so they are hardly aware of their destination. On the other hand, people with clear goals attain success and stand out from the crowd. Define your financial goals in life and act accordingly. Install budgeting software and applications staying on budget and to manage your finances.

• Create a yearly, monthly, and weekly spending budget in advance.
• Design long term and short term emergency funds.
• Consult a professional financier advisor to know more about secure investment plans.

Luxury: Luxury should not be the domain of only the super-rich and billionaires. Proper planning will allow one access to luxurious life that they desire. One must think like the rich to attain success. Do not try to do everything all by yourself. You may spend five hours making a picture frame to save a few dollars, but you could better utilize the same time to generate more profit. Some people have a sense of luxury that is beyond their means. They want to have something that they cannot afford, so they run into debt.

• Think like rich to adopt their mindset.
• Spend money wisely as if you are investing in a valuable item.
• Cut your coat according to your cloth. Do not mess up your credit score by running into debt.

Opportunity: Money allows you to live your fullest potential. You might be a world-class painter or an artist, but you would never get to experience those potentials if you do not have the time, money to invest and purchase the necessary products to try out painting. So, money is a crucial tool that makes everything possible. One is rich enough if he has the opportunity to pursue everything at any stage of life without worrying about the security and safety of his livelihood.

There are many good books that one might read to learn more about money management. Every month, there is a new bestseller book coming out on the book-stand about money management and self-help. Purchase these books to educate yourself. There are also online courses by tech gurus and self-made entrepreneurs. Personal Coaches and finance advisors share their valuable information in these online video sessions that would help millions of people manage their finances better. The goal is to experience a fully-realized life of stability and possibilities.