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Money Rules to Live By

Koboline
Money Rules to Live By
By Koboline • Issue #7 • View online
If you want to improve your financial standing, build wealth and not have money problems. Then it is important to have rules that govern your relationship with money.
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Money will come into your life and it will leave. This relationship is expressed by your income and expenses.
Think about all the money that has entered and left your life. How much do you still have in your possession today?
How much have you invested in some type of assets?
If you’re living paycheck to paycheck, you’re in a rat race. An unexpected accident like the loss of a job, health accident can turn your financial life upside down. Your job now becomes a necessity, no longer an option. A way to fund your lifestyle or a way to pay off your debts.
If you want to be free from money problems, then how you think about money- saving it, spending it, and most of all, how to invest it – is important.
There are several fundamental truths (rules) about money and here is a list:
Become aware of your relationship with money.
You can do this by journaling, tracking your monthly expenses; and splitting your expenses into categories like housing, transportation, food, utilities and entertainment.
This is about you understanding yourself as a consumer. Which can be a tough thing to do. This feeling is called the Oestrich effect; our tendency to avoid information that we feel is potentially unpleasant. It is the fear of looking at your bank account for what it might show.
Take control of your behaviour as a consumer by creating a financial plan and using a budget.
Decide how much you’ll spend on each category in your expenses and stick to it.
A financial plan and a budget helps you to keep account of your money goals, expenses so you can optimize them. This can be the difference between you being in a rat race or not.
Using a budget & financial planner helps you to systematically look at what you consume and showing you how you can spend below your means. It helps you to live a lifestyle that allows leaves you with enough money to save and invest.
What’s the point of making money and losing it almost immediately. Even as you work non-stop to fund your lifestyle.
Debt is a fact of life for most people.
So you must manage it so it doesn’t overrun you.
Pay your debts on time. If you find yourself always running into debts, always swallowed up in loans, you either have an earning problem or a spending problem.
If you don’t earn enough, you should definitely have to increase your income significantly. You can do this by finding a new job, starting a side hustle or an online business.
Before you invest it is advisable you have an emergency fund.
An emergency fund is a specific amount of savings you hold on to in case you have an emergency. This fund typically holds 6 - 1 year worth of expenses.
Don’t live a lifestyle you cannot afford.
Obvious right? Yet a lot of us struggle with keeping up with joneses. with seeking social proof.
Consuming is not a bad thing. Buying jewellery or cars isn’t a bad thing. The bone of contention is your awareness of who you are as a consumer.
Do you care more about appearing rich or actually having money?
Stop trying to impress or keep up with other people because of social pressure. 
Spend wisely.
Spend less than you earn.
Invest in Yourself
This is the most important investment you can make. Educate yourself, become better at your craft, develop an expertise and add to your skill box.
And invest in your future by making long-term investment needs before spending on short term wants (that’s as much of a scold as I can muster).
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If you have any questions about money, investing, or starting a business in Nigeria. You can send us a message by “Replying” to this mail. We’re always happy to help.
Your suggestions and comments are always welcome.

 

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