Today’s 5 Simple Lessons tackle money problems. These strategies have helped me stay on top of my family’s finances. I hope it will help you too.
1. Change how you view money– most people work to obtain money. You are exchanging your services as well as your TIME to earn the money. Time is not renewable. It is your most valuable resource. Since TIME = MONEY, choose how you spend both your money and your time wisely.
2. Get a job, specifically a good paying one– you need a source of income and most people rely on employment. It’s basic and common knowledge. However, it’s not uncommon for some people to complain about money issues, yet they do not take the initiative to gain employment or improve their skills to get a better job.
3. Do not acquire debt – everytime you acquire debt and incur fees, you are paying more for the item. The items you bought will end up costing you more. Do not use your credit card or obtain a loan to buy unnecessary items if you cannot pay it in full before interest charges are applied.
4. Live within your means -this is the most critical strategy. Apply this in your life as a rule. Your monthly expenses must be lower than your income. If you abide by this rule, then you are always a step ahead of the game.
5. Setup an emergency fund– remember the story of the grasshopper and the ant? An emergency fund will help you when unexpected expenses or life situations arise. Having at least 3-6 months of living expenses saved up, will ensure you are covered.