The rules of money to aid financial management cannot be placed in a better way but to be addressed in the words of Edgar Watson Howe
“A man is usually more careful of his money than he is of his principles.
Money management skill is not rocket science like some may have assumed. Knowing the rule of making and managing money is very crucial as it has a vast impact on every area of your life. It would help you stay better positioned to life with hope and meaning. Just so you would relate with ease I would be sharing the rules of money to aid financial management using the acronym MONEY.
Make something valuable: Money in the real sense is not just the physical cash you have in your wallet. That my friend, is cash and it’s just a representation of gratitude for value (in the form of a product or service) exchanged.
“All wealth is the product of labor”- John Locke
For example, you as a worker in the civil service given #50k or more (as salary) on the 30thday for the work you did 29 days ago. So, to earn more money (gratitude vibes) you have to find out more ways you can make and express value in the form of product or service.
Organize yourself: This basically implies that you have a working strategy for expression of value. Package whatever you do and make it more organized, appealing to your clients or customers. If you want to get more patronage on what you do, you need to deliberately brand yourself and be better positioned in consistency and excellent delivery.Nurture your seed: Every farmer understands place of visiting his/her farm from time to time to ensure the seeds, plants are doing well.So, after you have earned the cash you need to have a budget and be sure you follow it through. Budgeting helps you see beyond and plan effectively on how much should go for what. As good money comes you want to ensure to keep some aside as seedlings (savings and investment) for the future.
Nurturing would also mean that you build a sustainable system around whatever product or service you offer and ensure that every section is effectively serviced for optimum growth and productivity.
Evaluate and Eliminate: There is just no use doing the same thing over and over and not making any significant progress. Make more research on what product/service line you are in and know what works and what doesn’t. Know best practice and eliminate any and every unnecessary activity that would not yield productivity and profit.
Without hard work, nothing grows but weeds. – Gordon B. Hinckley
Ensure your expense does not outweigh your income.Yield Profit: Use what you have to create more value. Money is a handmaiden, if thou know-est how to use it; a mistress, if thou know-est not. Build capacity and system around what you do and replicate it in other place so you could keep the profit margin wide.
One of the best rules that you should know about money is instead of saving more you should work to earn more.
Digital Skills Trainer
Linkedin : @nwisabarisamuel