How to Be In Charge Of Your Finances (4)

Dear friend,

This is the last part of a series of post on the topic I started few days back which I believe you’re really finding very informative. Below are more tips on how to take charge of your finances.

Shop around for bargains: It is incredible how much you can save by spending extra time to look for ways to get good deals on your fixed expenses. You can switch telephone providers. You can look around for sales on clothing. Think of more creative ways to save. You can visit less expensive restaurants. You can cut your entertainment budget.

Search for the gold in your house: It is amazing. You may be looking for money outside but you may discover there is gold under your roof. Do you have a piece of materials you have not touched for a year? Sell them off. Dispose of jewelry. What of that extra car at home? Sell it and put the money in shares, certificate of deposits, bonds or other relative investments that can give you reasonable returns.

Turn yourself to a tenant-landlord: You are probably living in a duplex with a BQ when all you need is just a two –room apartment. Sublet the BQ and collect some money you can invest in high yielding instruments. Somebody has a useful guide, never spend more than between 20% to 25% of your income on rent.

Fight Parkinson law with all your strength: Expenses they say always rise to meet the new level of increase and promotion. Break the rule, work against the law. Every time you are promoted in the office and given a salary raise, save the difference between your new and old salary. Same applies to unexpected income. Don’t give yourself a treat first; put everything in your saving programme.

Never spend on impulse: No matter how pressed you are to spend, take a little time to analyze and ponder on what you are about to spend money on. Is it worth your money? Is it a priority item? Can you do without the items? Will the items take more money out of your pocket or bring more money to your pocket? Spend extra five minutes to develop a small list before you hit the supermarket. Window-shop first before you spend your money.

Have a financial freedom plan in place: You don’t have to wait for a battle to come before you prepare for it. Endeavour to dig your well before you become thirsty. Retirement is as certain as death. You have to get ready for it. Put a financial freedom plan in place. It is a road map that should guide you to your final destination.

Take action: Procrastination is the number one destroyer of destiny. Take action on what you have set out to do. Don’t worry about perfection the very first time you are starting out. Start anyhow and you will get it right along the way. A shoddy plan being acted on is better than a beautiful plan that is gathering dust on the shelve. Take action now. But please remember to spoil yourself a little. It is part of the equation if you do it intelligently.

On a final note, I need you to understand that knowledge that is not applied can not produce any benefits for you. Only knowledge that is diligently applied will bring the necessary dividends. I challenge you to do something with what you’ve read so far.

To your success.

Cheers.