Money has some basic principles which pay off in a positive light when you abide with it. As a matter of fact, there are lots of benefits when you start implementing some of these principles.
Invest your Money
Many people stop at saving. It’s very, very difficult to save and have all you need to maintain your lifestyle, especially after retirement.
When you save, your savings are seed; plant it. When you just keep the seed, some seeds begin to die in the process, e.g., eaten by inflation and devaluation.
That’s why I recommend that you start honing your investment skills so you can avoid making this mistake.
Investing does not necessarily mean setting up a business; I am not necessarily talking about creating a business because you can easily lose money in business.
Never borrow money that accrues interest to start a business
It is not advisable to borrow money and start a business unless you are borrowing to grow the business or paying for it through your salary.
The point is business takes a long time to mature and begin making a profit. It takes probably few years before you start seeing results in your business.
The lender might not be patient enough to see the business undergo maturity process. You need to generate enough revenue, then profit before repaying back.
Stop carrying other people’s financial burden
Wanting to be the savior of the world by helping everyone in financial need is not advisable. I am not saying being generous doesn’t worth it, but you would be committing financial suicide if you continue saying yes.
Never spend money you haven’t received.
Don’t fall a victim of spending the money you’re yet to receive. Sometimes, we promise people money that is yet to come and probably borrow to fulfill that pledge.
Avoid Spending before Saving
If you want to save, whenever you receive money, don’t start spending hoping that you’ll keep what remains. Normally what’s left is zero because as long as money to spend is available, the numerous things you can spend it on are also available.
When money to spend is not available, we naturally find a way of doing without it. That’s why I recommend having a different account for savings, or investment. Once you send the money there and no longer within your reach, you will find an alternative.
Before you spend any money, put your savings aside then spend what is left after saving.
Spending more than you earn
Consistently spending all you earn or more than you earn. It’s like having a drum where you have an inlet that’s smaller than the outlet. It will never get full.
If you think there is no way to salvage the situation, double your income, so as not to spend more than you earn. The implications of spending more than your earn are adverse and severe in the long run.