Managing Your Money For Wealth Creation

Manage Your Money To Create Wealth & Ensure Financial Stability

Apart from a few lucky individuals & super wealthy celebrities on this planet, the majority of us earn or receive a finite amount of money each month or over certain periods (usually far less than we would like).

In fact we would always like to have more disposable income than we get & often when we do get higher than inflation increases, we usually still run short & never seem to have enough of the green stuff.

So if we spend whatever we earn like drunken sailors, we will probably run out of this valuable commodity long before we have paid for essential products & services that we need for us & our families to survive.

It would therefore be prudent for everyone to manage their money wisely so that they can start to create wealth for the future & do not run into debt problems which will only cause extensive misery for themselves & their dependents.

So What Is the Best Way To Manage Your Money?

Managing Your Money For Wealth CreationClearly doing a monthly budget detailing your monthly income & expenditure is what is needed, however without discipline a sheet of paper will not help you meet your monthly payments.

If you are the type of person who succumbs to wanting the latest gadget, iphone or car, then you are the exact person who needs to pay special attention to managing their money.

So if money burns a hole in your pocket you’ll find yourself in a downward spiral towards overwhelming debt & ending up undergoing debt counselling or worse still being declared bankrupt or insolvent.

Therefore most regular income earners should draw up a budget & stick to it rigidly to avoid the above & be able to begin some sort of wealth creation savings plan.

How To Manage & Budget Your Money

Included in your budget should be a provision for savings & contributions to retirement funds & investments to provide for the future.

Example Of a Typical Budget

A very simple household budget could be based on the following, however you can add more detail where appropriate.

Personal Monthly Income & Expenditure Budget

Item Amount
Housing Costs 4,000.00
Insurance 2,000.00
Groceries 1,500.00
Personal Care 500.00
Taxes 650.00
Investments/RA Payments 500.00

Drawing up a monthly budget & sticking to it will not only help you manage your money better, but it will ensure that you do not run into debt or make those impulse purchases that could cause you financial problems later.

Another point to remember is that the compound interest is a powerful thing which could work in your favor if you put some money away every month into an interest bearing account, such as a money market account which generally offer competitive interest rates as well as allowing you easy access to your money.

So open up such an account & make sure that you provide for a certain amount (in your budget) to be deposited into this account every month & you will be creating a certain amount of wealth for your future.

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