money
When you have money, no matter how much it is, you have “that” limited power to do what you want, what you need to do. That makes it important to really know everything about the money you have. It is better to control your money than the money controls you.
Calculate everything you own, like your cash, deposits, property, cars, and other assets, then subtract them by the amount you owe to another party (your payables, your debts, credit card payables, etc). The amount left is your net worth, the money you really own.
You also need to know where those money come from, whether it comes from your salary, bank interests, royalty, dividends, heritage or others.
By knowing where these sources come from, you can think of what you can do to increase your wealth. If you spend to much time on something that only give you a small return then you can figure out something more profitable for you.
You can also make a policy about how your money should be used. For example, your monthly salary should be used for your daily expenditures. When you receive yearly bonuses, you can use it for vacation and heritage money can be used to educate your kids or another one-time expenditures. Just try to balance your book.
After you keep track on what you own and where your sources come from, it is about time to realize how you use your money. It is the way to control it. When you find a leak, you know you can plug it soon.
By tracking your expenditures, you will know how much your spending is in details. Sometimes, we just forget and spend on unnecessarily things.
You can track your expenditures by making notes; how much you pay for social donations, your loans, your grocery expenditures, clothing expenses, etc, just write down everything.
You can imagine when you waste $10 per day for unnecessary expenditures, it will be $300 at the end of the month, and when it happens every month, and the deposit’s interest rate is assumed as 6% per annum, actually by the end of the year you will waste $ 3,700.67
note: On the table above, I’m not calculating taxation on the brief calculation
When you waste $10 per day, actually you will lose $3.700,67 in a year, don’t you feel sorry for that? Imagine if you keep doing this for the next 5 or 10 years.
Remember that most expenditure will be followed by another one.
When you buy a car, you not only pay for the car itself, but you also have to pay taxes, insurance, maintenance, etc. Do you really want to pay for those? Can you really afford those extra expenditures without risking your financial plan?
On the article "How to Double Your Money" you will learn that time and rate of return of an investment can grow your wealth. Your money is working for you. You must keep an eye on it. Make a record, so you can figure out what is going on and how it is going to be.
It is your money, your responsibility, by taking control of it, you may earn more than just the monthly salary you receive.
By controlling and managing your money, you actually can improve your wealth, your quality of life.
When you have money, no matter how much it is, you have “that” limited power to do what you want, what you need to do. That makes it important to really know everything about the money you have. It is better to control your money than the money controls you.
Calculate everything you own, like your cash, deposits, property, cars, and other assets, then subtract them by the amount you owe to another party (your payables, your debts, credit card payables, etc). The amount left is your net worth, the money you really own.
You also need to know where those money come from, whether it comes from your salary, bank interests, royalty, dividends, heritage or others.
By knowing where these sources come from, you can think of what you can do to increase your wealth. If you spend to much time on something that only give you a small return then you can figure out something more profitable for you.
You can also make a policy about how your money should be used. For example, your monthly salary should be used for your daily expenditures. When you receive yearly bonuses, you can use it for vacation and heritage money can be used to educate your kids or another one-time expenditures. Just try to balance your book.
After you keep track on what you own and where your sources come from, it is about time to realize how you use your money. It is the way to control it. When you find a leak, you know you can plug it soon.
By tracking your expenditures, you will know how much your spending is in details. Sometimes, we just forget and spend on unnecessarily things.
You can track your expenditures by making notes; how much you pay for social donations, your loans, your grocery expenditures, clothing expenses, etc, just write down everything.
You can imagine when you waste $10 per day for unnecessary expenditures, it will be $300 at the end of the month, and when it happens every month, and the deposit’s interest rate is assumed as 6% per annum, actually by the end of the year you will waste $ 3,700.67
End of month | End of month SAVINGS | End of Month Savings plus 6% interest |
| January | $ 300.00 | $ 300.00 |
February | $ 600.00 | $ 601.50 |
March | $ 900.00 | $ 904.51 |
April | $ 1,200.00 | $ 1,209.03 |
May | $ 1,500.00 | $ 1,515.08 |
June | $ 1,800.00 | $ 1,822.65 |
July | $ 2,100.00 | $ 2,131.76 |
August | $ 2,400.00 | $ 2,442.42 |
September | $ 2,700.00 | $ 2,754.63 |
October | $ 3,000.00 | $ 3,068.41 |
November | $ 3,300.00 | $ 3,383.75 |
December | $ 3,600.00 | $ 3,700.67 |
note: On the table above, I’m not calculating taxation on the brief calculation
When you waste $10 per day, actually you will lose $3.700,67 in a year, don’t you feel sorry for that? Imagine if you keep doing this for the next 5 or 10 years.
Remember that most expenditure will be followed by another one.
When you buy a car, you not only pay for the car itself, but you also have to pay taxes, insurance, maintenance, etc. Do you really want to pay for those? Can you really afford those extra expenditures without risking your financial plan?
On the article "How to Double Your Money" you will learn that time and rate of return of an investment can grow your wealth. Your money is working for you. You must keep an eye on it. Make a record, so you can figure out what is going on and how it is going to be.
It is your money, your responsibility, by taking control of it, you may earn more than just the monthly salary you receive.
By controlling and managing your money, you actually can improve your wealth, your quality of life.
