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Monday, January 24, 2011

How To Manage Your Money Better

You have done the next major thing after getting your education and a job.You have just started your family and it is growing.Ahead of you lies the much tramelled road from time immemorial that every family had trudged:how is the family income to be managed.Out in the marketplace in the rush to live it up many fail or refuse to listen to the soft chirping of prudence on money and it's life and death domino role on physical living.Here are three signposts you must never take your eyes off of:
  1. Keep 3 to 6 months nett income in a rainy day fund. Your rainy day fund is your first line of defence against declining nett left-over pay and rising expenses.There will always exist the possibility of another downturn or emergency down the road.This rainy day fund buys a cushion of time to keep rowing your boat towards a safe harbour.
  2. Save 10% of your income each year. Get off the debt path.Financial distress can place the family on crutches.If you can't manage your credit cards lock them away.Get and keep a handle on your eating out entertainment and impulsive expenses.
  3. Explore revenue enhancing options. When it comes to the future should you wholly rely on government or your employer or a bank?Self reliant entrepreneurship is the way to take control of your future.Ninety percent of the wealthy own their own business.In staying where you are,are you building your life or someone else's?Entrepreneurship opens doors.Plant an income tree,not plunge into a capital intensive millstone of a business.Here's an income tree you can plant for the cost of a lunch.   
 Plant An Income Tree,Don't Start A Business Yet..