Personal Finance

How Can You Manage The Present Day Tyrant?

Money is a crucial element in the day and age we live in. Some might even say that it is a tyrant, ruling over every human being.

Our days revolve around

Earning money;

Spending money;

Saving money;

And finding ways to expand the money that have saved.

The life of an average human revolves around these four things from the money he starts understanding how vital money is.

A person does not have to be an adult working a fulltime job to do all of this.

A 12-year-old girl can do this and is doing it through her income as a babysitter.

A child, who hasn’t even entered puberty, knows the real value of money. And why?

It is because money is everywhere; every single thing we do in our life somehow depends on money.

For instance,

I am writing a blog.

I am doing it on my laptop; bought with money.

I am writing on Microsoft Word; which needs a paid subscription to use nowadays;

I will post my writing on the internet; the connection received through a payment;

I am sipping a cup of tea while writing; from the cup to the water and the tea bag, all is being used after being purchased with money.

Where ever you may look, you would find that money is the core behind everything you see.

Now that you have understood the predominance of money, the pound bills in our lives, let us go back to where we started; the four things we use the money for.

Personal Finance Management

The four things mentioned in the very beginning are the foundation of personal finance management.

It is essential because, without it, money would slip right through your fingers like sand, and you will not be able to do anything about it.

Personal finance practices are things you do so that the money in your bank balance only grows.

The four pillars of personal finance practices ensure that growth is the only outcome when you implement this concept.

Earning Money

Any personal finance practice is based on the principle of money. Finance is equivalent to money.

And since we are the law-abiding citizens, we would never steal money. So, the only way left is to earn it.

The most basic way of earning money is to get a job, much like all the other adults and even some teenagers already have.

You have to have an income because only then will personally finance management practices allow you to do something with it.

 If you do not have a job, you can apply for government benefits that can help you get by until you do find a job. But you have to work to make money.

Spending Money

The cycle of money management begins the day you get your first income. Now, this concept does not say that you have to save all your income and become frugal to your very core. No, it certainly does not.

You have earned money, so you have every right to spend it like you may see fit.

You can buy yourself lavish jewelry, the Daniel Wellington watch and bracelet set is what I bought through my first salary.

You can even take a loan if you feel that you would need it to pay for something that is urgently needed. Unsecured loans for bad credit are for people who have made mistakes in money management in the past but are ready to make amends in the present.

Saving Money

So, we have earned money, and we have also spent the earnings. Now that we have had the fun, it is time to become a little more prudent with our money.

Personal finance management has one golden rule, and that is never to spend the entirety of your income.

 Even if you save 5% of your income every month,

By the end of the year, you will have almost 60% of your monthly salary saved up.

By the end of five years, you will have saved up three months’ salary.

And this is just 5%. The savings would be so much more if you saved 10 or maybe 20%.

Savings are a form of security blanket for you in uncertainties and failures when only security can save you.

Growing Money

Lastly, it is time to grow your savings more than your income can allow. This is done through investment.

I am not saying go and invest in the volatile share markets, you can, if you want to, but that is not what I am saying.

There are so many other ways you can grow your money.

For instance,

My mother had invested in a very expensive and luxurious Chanel Handbag in the late 90’s. She still has it, even though I have asked her to give it to me too many times to count.

The bag is vintage now, so if she were to sell it on say eBay, she would make much more than she paid for it at the time of the purchase.

That is the growth of money. You can interpret it any way you like.

Winding Up

In the end, all I want to say is that there is no hard and fast rule as to how you are supposed to manage your money.

You should do what you feel is right and what you feel comfortable doing.

Just remember that the decision you make with regards to your money will affect you 5 years down the lane. Now, the kind of effect you want them to have on you should be the driving force of your personal finance practices.

Summary: – Money is the most valuable commodity in the world. So the art of managing it should also be given the same kind of importance. Let us find out how.

About Ambika Taylor

Myself Ambika Taylor. I am admin of For any business query, you can contact me at [email protected]