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.
After the expenses have been shaved, one now has a considerable amount of cash left. The first thing one must do is put that into an emergency fund which will be taken only during times of need. It is suggested that one put in fifteen to twenty percent of his total salary into a savings fund for emergencies like an accident or an illness.
After taking out twenty percent for the emergency fund, one may now explore some investment mediums in order to gain some passive income. In order to become wealthier as time passes by, one has to have a few sources of passive income. This will help one become more comfortable as he grows older.
Now, the first type of investment that one can go into would be investments offered by the bank. These would include money market funds, insurance funds, and also time deposits that have interest. One may also choose to invest money in the stock market if he wants to make more income, however, he may want to consider long term investing instead of trading if he is conservative. Lastly, he may also consider trading in the forex market if he is willing to study how forex trading works.
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.
After the expenses have been shaved, one now has a considerable amount of cash left. The first thing one must do is put that into an emergency fund which will be taken only during times of need. It is suggested that one put in fifteen to twenty percent of his total salary into a savings fund for emergencies like an accident or an illness.
After taking out twenty percent for the emergency fund, one may now explore some investment mediums in order to gain some passive income. In order to become wealthier as time passes by, one has to have a few sources of passive income. This will help one become more comfortable as he grows older.
Now, the first type of investment that one can go into would be investments offered by the bank. These would include money market funds, insurance funds, and also time deposits that have interest. One may also choose to invest money in the stock market if he wants to make more income, however, he may want to consider long term investing instead of trading if he is conservative. Lastly, he may also consider trading in the forex market if he is willing to study how forex trading works.
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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