Most people get their monthly salary and spend it on things that they do not really need. In the end, they would end up with no more money at the end of the month and will be forced to take a loan for emergencies. In order to avoid this type of situation, it is very important for one to learn tactical money management, which refers to handling your wealth strategically.
Now, the first rule of strategic wealth handling is to never put everything in one basket. This means that you have to ration your cash and park it in different mediums. Your first priority are your bills so with every salary you get, put aside for all your monthly payables such as rent expenses, telephone bills, electricity bills, water bills, and the like.
After he has taken care of all his monthly bills, he now has to put money aside for all his daily expenses. These daily expenses can be considered variable costs because they are spent in order to make more income. These costs would include the supplies costs like pens and notebooks, food costs for energy, and transportation costs to get to work.
Once all of these total expenses have been decreased, then the remainder of the cash can be put into savings. The first part of savings should be put into an emergency fund which can only be touched during times on emergency. The recommended amount to put into an emergency savings fund would range from fifteen to twenty percent of the total monthly income.
Once one has already shaved off expenses and a saving fund, the next thing to do is put aside a fund for investments. If one would want to become independently wealthy when he grows older, he needs to make some passive income. The only way to do that is to invest early and reap the profits later on when they grow bigger.
If one is more conservative, he may investment in mediums that generate a fixed return. These investment mediums are often offered by banks and include time deposits and mutual funds. If one wants to have a bigger income and is a bit more risk averse, then he may want to take to the stock market. If he wants a safe stock market venture, then he may just invest in blue chips and leave them there until they make some income. If one is very daring, then he may try out the forex market which is the most volatile market of them all but the one that earns the highest and fastest possible returns.
Whatever cash he has left, he may now spend on miscellaneous items and for his pleasure. This is what he can use to buy a new phone, buy a cake for his family, or take his significant other out for dinner. The remaining cash is now his to spend on whatever he wants.
Basically, these are some of the techniques to use whenever trying to make the most of a monthly salary. Take note that every cent counts which means that every little cent has to be put into good use where one can empower himself and make him wealthier in the future. This is the art of handling money intelligently.
Now, the first rule of strategic wealth handling is to never put everything in one basket. This means that you have to ration your cash and park it in different mediums. Your first priority are your bills so with every salary you get, put aside for all your monthly payables such as rent expenses, telephone bills, electricity bills, water bills, and the like.
After he has taken care of all his monthly bills, he now has to put money aside for all his daily expenses. These daily expenses can be considered variable costs because they are spent in order to make more income. These costs would include the supplies costs like pens and notebooks, food costs for energy, and transportation costs to get to work.
Once all of these total expenses have been decreased, then the remainder of the cash can be put into savings. The first part of savings should be put into an emergency fund which can only be touched during times on emergency. The recommended amount to put into an emergency savings fund would range from fifteen to twenty percent of the total monthly income.
Once one has already shaved off expenses and a saving fund, the next thing to do is put aside a fund for investments. If one would want to become independently wealthy when he grows older, he needs to make some passive income. The only way to do that is to invest early and reap the profits later on when they grow bigger.
If one is more conservative, he may investment in mediums that generate a fixed return. These investment mediums are often offered by banks and include time deposits and mutual funds. If one wants to have a bigger income and is a bit more risk averse, then he may want to take to the stock market. If he wants a safe stock market venture, then he may just invest in blue chips and leave them there until they make some income. If one is very daring, then he may try out the forex market which is the most volatile market of them all but the one that earns the highest and fastest possible returns.
Whatever cash he has left, he may now spend on miscellaneous items and for his pleasure. This is what he can use to buy a new phone, buy a cake for his family, or take his significant other out for dinner. The remaining cash is now his to spend on whatever he wants.
Basically, these are some of the techniques to use whenever trying to make the most of a monthly salary. Take note that every cent counts which means that every little cent has to be put into good use where one can empower himself and make him wealthier in the future. This is the art of handling money intelligently.
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