Money handling is an art, “Balancing your money is the key to having enough.”
People go crazy when it comes to earning money; we go to school and colleges to study so that we can get a fat salary package, but has anyone ever taught us how to utilize our money in the right way? Is just earning money, will make you wealthy? Do you think that rich people are rich just because of earning money?
UTILIZATION OF MONEY
If you think about money and its usage, there are in general five things you can do with money-
Everyone has to earn an income through some or other way, but the critical aspect here is how much money do you need to obtain to survive? Some people can’t say no to extra cash, so they fall into the trap of earning more money than required and work overtime, thus depriving themselves of family and social life and then there are other categories of people who don’t work enough; therefore they are not able to provide their family with basic needs of daily life.
So the key here is to find a balance between work life and social life so that you can live a comfortable life without falling into either of the above categories.
It is always said that you should spend less than you earn. Sometimes people spend more than they receive and incur a deficit that adds continually to debt. So make a budget every month and spend accordingly. And if you are already in debt, consider this when you make a financial budget.
The money which is left at the end of every month after your daily expenses, tax are met is called your savings. You should always plan your savings while making a budget to decide what amount of your income you can save. But just saving your money won’t help you when you are merely accumulating it and not putting it in some way where it can grow itself.
“The more your money works for you, the less you have to work for money.”
The most important thing in money handling is investing your money wisely so that the money you earned from your hard work can now work for you. But you need to do some research before investing your hard-earned money, while Fixed deposits are some of the safer, more comfortable, and less risky ways of investing money.
Still, there are many other areas like government bonds, GICs, real estate, mutual funds, and individual stocks and for investing in these, you need to have some more in-depth knowledge about it you can always consult some financial planner or do some research before investing because you will never want to see losing your hard-earned money over a poor business strategy and this would be one of the worst nightmares of your life.
If you are doing quite well in your life, you can always donate your money to organizations but always do research and find out where your money will go. It depends on you how much money you want to donate. There is no hard and fast rule in helping someone.
IMPORTANCE OF MONEY HANDLING
When you read about the top billionaires in the world Jeff Bezos($129.9bn), Bill Gates ($113.1bn), Bernard Arnault ($106.2bn), Warren Buffett ($89.4bn), Mark Zuckerberg ($79.3bn), etc. you’ll get to know that they are rich not just because of earning money they are rich because they know how to handle their money they have more than one source of income, they make their money work for them, they never overspend they think before purchasing anything, investing, saving, etc. are very are essential for them
So having financial knowledge is very important in today’s era. People nowadays just for showing others that they are luxurious purchase things which are in general not required and not even affordable.
It’s very rightly said that if you have $500, never purchase a walled of $400 to have $100 in it instead of buying a wallet of $100 and have $400 in it.
BENEFITS OF MONEY HANDLING
Money handling is an essential concept, and getting acquainted with it as earlier as possible would be a good option for a happy, comfortable, and financially stable life.
And you can even expand your leanings to your children by telling them the benefits and importance of financial management. Children who learn money management at an early stage can be in a better position to pay for their needs, education, and become successful. And they will develop a lot of skills through this process of learning money utilization like reading books, watching useful content, management, etc.
So by getting knowledge of money handling, you are not only helping yourself but also improving your younger generation to become financially stable.