“Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much.”
Managing finances is not a simple task. It requires building the right skills and learning and exercising the right principles. It’s important to learn these principles with your first job (which may not be paying all that much) so when you do receive an increase you’ll have the know how to manage it well.
1. Spend less than you earn. If you spend it all, you have nothing; plain and simple.
2. Open a savings account. It is important to have a savings account with money that you add to monthly in case of an emergency. They will happen to you and it’s best to prepare the funds now.
3. Cut expenses until you earn additional income. There is always something you can go without whether it’s reducing your cell phone, cable, or utility bill. Find out
4. Create Income. You are creative, talented, and smart and there is something you can share with others to create an additional stream of income. Can you do hair? Babysit? Make beats? Do it!
5. Invest in stocks. Let your money make you money. Read books, follow blogs, but learn everything you can about investing your money.
6. Create a spending plan. Don’t just be frivolous with your money. As soon as you find out how much you’re expecting, sit and plan out how it needs to be spent.
7. Handle those credit cards wisely. The best advice I received is don’t borrow from your future to pay for today. It’s good to develop credit if you can manage it but it’s not wise to max out your credit cards for clothes, fast food, and hanging out.
Question: What’s the #1 tip you’ve heard about managing money?
Let me know below…