How Should You Manage Your Money

1. Avoid Credit Cards 2. Invest in Long Term 3. Create Your Financial Goals 4. Take an early Retirement 5. Start your Emergency Funds 6. Track Your Investments 6. Avoid Daily Expenses

Avoid Credit Nothing is free in this world, if you are taking money as a credit from someone, bank or any company then you have repay it with a high interest rate. Try not take any money as a credit from someone, especially avoid credit cards. If you are unable to pay the extra interest amount, you may fall in a debt and the debt can pile up. This can also hamper your credit score and future you can be blacklisted.

Invest in long term Invest in Mutual funds, real estate, stocks, etc. Normally long term investment can give you good returns, Move out from short term investment, these investments are not profitable. The results of long term investment will be seen after few years, so you need to have some patience and wait for few years. All successful entrepreneurs, industrialists and capitalist go for long term investment, this is one of the sensible way of managing your money.

Create your financial goals The best way to manage your money is to set some financial goals every year. Set a goal that you will purchase a brand new car next year, start depositing money for this particular goal. This will definitely help you in saving a monthly or daily money. In the same way, create multiple financial goals, like you have to purchase an apartment, or you have to go to a world tour with your family.

Take an early retirement Normally people retire at an age of 60, you should plan your financial life in such a way that you retire at an ear ly age. So, what will I do after I am 50 years old? What will be my source of earning? By the time you are in your thirty’s and forty’s, you should start your passive income. An income which will run till you live. Passive income can from Affiliate marketing, Blogging, Online marketing, etc. Setup your passive income before you reach 50, and don’t be dependent on a single source of passive income. Create multiple streams of passive income.

Start your emergency fund Make a habit of saving few dollars every month from your salary or income, save this amount in a separate account, this can be your emergency fund. Emergencies can come up in a form of a medical, financial, etc. This fund will play an important role during such emergencies. I would suggest to save at least 10% of the monthly income in emergencies funds. For example, you earnings are 3k dollars in a month. You should save $300 every month in emergency fund.

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Avoid Daily Expenses Reduce daily expenses, try to minimize the daily spends. Spend only if it is critical and mandatory. If possible stop the recurring expenses.

Track your spending and investments Keep a track of your daily, weekly and monthly spending. Use any money management free app to track your spending. Check if the spending are on non-essential items or products. Like the same way, track your investments.

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