Almost half of the percentage of people working do not know how to properly handle their hard-earned money. Some are those we call “One-day Millionaire”, in which every time they got the money they will spend it effortless – buying stuffs that aren’t too important.
“Money management is an art. Sadly, it is becoming a lost art.”
Yes, this is definitely true. Not everyone are born to have the talent of managing their money wisely. It is something that you need to inculcate and incorporate in your life.
So if it’s still not too late for you, do not wait for the moment to look back and wish you had been shrewder in your money management. Instead, look forward with hope today and spruce up your money management for the future.
Foresight – Foresee your needs and provide for them. Your child’s education, your family’s health, a new house – everything has to be well planned for.
Health Insurance – This is a vital need today. Every member of the family must be covered by a suitable health scheme. Life insurance also provides stability for next of kin in the case of an unforeseen calamity.
Retirement Fund – If you plan to retire early from your present career, keep aside an appropriate amount toward this goal. You will be driven to save more and faster toward an early retirement, with the satisfaction of doing something more exciting with your savings.
Emergency Fund – In the present recession, it is even more important to build up an Emergency Fund to cover living costs for 3 to 6 months. It is also wise to develop an alternate small business or part time career to fall back on, in the case of an impending layoff.
Saving Account – Strike a balance between preserving money for the future and having money to spend and pay bills in the present. Keep 10 percent of your money in a savings account for quick liquidity.
With all the current situations, money management is essential for each of us – not for the present but also for the future. That’s why it is really important to know what are those that will be beneficial to us not just for today, but also for our future.