SOME FINANCIAL ADVICE THAT WILL HELP YOU GROW-(10% TO @businessactivity)
Greetings,
It's your friend @mondraye and today I would be sharing another important content on finance.
Finance management is very important in everyone's life. I believe it to be the most important aspect of money making. One who doesn't know how to manage their finances, ends up being broke no matter how much they work.
Today, I will be sharing with us some financial advice which I believe will be important in everyone's life.
- Don't buy one of something if you can't afford two of it.
My dear friend, who learned how to live by this advise from their father, is the source of this guidance. It does not apply to the largest purchases you will ever make in your lifetime, but it does apply to a generation of people who occasionally decide to go out and live it up on their last dollar. Asking yourself if you can pay "twice" for whatever you want to buy is an excellent idea when it comes to small- to medium-sized purchases, such as eating out, shopping, etc. If you can't, think twice because it's probably advisable to save your money instead of spending it.
- Before you spend, calculate how much work it will require to earn the amount you are spending
I utilize this advice every single time I want to purchase something that is not a necessity since it was the best advice I ever got from a mentor this year.
Even if I don't have a set income and my sources of money are unpredictable, most people can figure out how much an hour of their time is worth. Determine how many hours of labor you would need to put in to finance the item you want to purchase. Once you get into the habit of doing this, I promise you'll see how many things in life you thought you needed but really don't can be done without.
- Being able to buy something is different from affording it.
If you can't afford it, you probably don't need it, the father of a family I made very close friends with in college would frequently say. I think he strictly intended that for those who can pay for the most of their essential needs, but I've decided to build on it. Even while I'll acknowledge that when it comes to money, I've been incredibly lucky, I'm by no means carefree. I could theoretically visit shoprite every day for a year and purchase a cake. for instance. If my recollection is correct, a small cake costs ₦6,000 which is 45 STEEM. That works out to roughly ₦150,000 each year, which is 1,136 STEEM.
I simply cannot rationalize or "afford" to spend 1,136 STEEM a year on shoperite cake when I can buy fine cake at the store for far less and save others for anything else. Simply because you can purchase something does not imply that you can "afford" it.
- Be conservative, not stingy
To be completely honest, I have very little personal debt. However, as a graduate student with limitations on the amount of work I can do and the kinds of work I can even undertake, my financial flows are not as flexible. Having said that, I recently got into a heated dispute with a buddy who doesn't think organizations should contact their alumni and request support. I firmly disagreed because I was aware that we had both received merit scholarships, and because my first job in college involved doing the same thing.
Many merit scholarships would not even be available without the financial assistance of former students. And because I have personally benefited from it throughout my whole higher education career, I think it is imperative to provide similar assistance to other students in the future. And if you can afford it, I think it would be wasteful not to.
Having said that, let's talk about being thrifty versus being frugal: Someone defined it to me in the following way: You are being stingy if you go to a restaurant with your pals but insist on not eating, "mooch" off of everyone's meal, and refuse to pay. If you opt against eating out because you didn't want to spend money on it that day, you are being fiscally responsible. Don't put too much stock in that.
- Get a side hustle
The value of having several streams of income is the most valuable lesson I've taken away from college. That might not be viable if your employment requires you to work more than 80 hours each week. However, the majority of us who possess creative aptitude or learnable abilities are capable of pursuing a side business. Working a couple days a week at a retail store or restaurant is one option, as well as tutoring, copywriting, editing, and more.
Naturally, any non-compete agreements you have at your current employment should always be in accordance with any side jobs you have. However, this revenue may be what enables you to pay for your trip, save money, settle your bills, etc.
- Money must be put in its place
When it comes to resources, I will always be a traditional African. I will never ever think that "my own hard" labor alone got me anywhere without the direct and indirect assistance of others. If I am able and I am aware that someone is in need, I will always try to assist them monetarily. I chose to be that way because it's how I was raised.
I only donate money to people I can afford to give it to. In addition, I've discovered from other people's experiences that you should give someone money as a "present" rather than a loan that you anticipate to be repaid when you're friends. The most important financial lesson my father ever taught us was to never define ourselves by the size of our bank balances. "We should owe nobody anything aside than love," says my mum again. They all taught me that if you can't contribute with what you have now, you won't be able to when you have a lot.
Money is important, but you must put it in its proper perspective. Avoid adoring money at all costs because that is when problems arise. Respect it and treat it with value, keeping in mind that what you earn is more precious than what you are given, even if it isn't always financially. It takes a delicate balance when it comes to financial issues.
Financial management is very vital. And we are required to take it as serious as making money itself because without a proper financial management skill, we will end up working without anything tangible to show for it.
Apparently, every level of studies should have a course that focus on financial growth.
I’ve read lot of books about financial freedom and I must say that; all have impact my life in a positive way