Understand your income: incomes are cash flows. The amount of money that flows into your hands either monthly, weekly or daily is what is referred to as income in a layman language.
The understanding of how much you get helps you to know the limitations and strength of your finance.
Budgeting: the word budgeting is one of those words we hear frequently either on the TV or the radio. Budgeting serve as the foundation of every financial and business plan.
Nothing actually works without budgeting in place. Jeremy Vohwinkle, the author of Budgeting 101 have this to say about budgeting; “ A good budget can help keep your spending on track and even uncover some hidden cash flow problems that might free up even more money to put toward your other financial goals”. Budgeting is beyond some tedious financial process which sucks both energy and time.
Saving: someone once said that savings is the path way to financial freedom. Some fellows see no need for savings because they felt they are working and the money is flowing. And some people also feel the more they spend the more the money comes.
But the fact remains that money flows in the direction of the man/woman who knows how to put it under control. The thought that money is like a spring and that once it starts flowing it will keep flowing is a primitive mindset.
Personal development: many might actually be asking what has this have has to do with money management. The fact remain that what you don’t really know is far beyond you.
Many individuals actually mismanagement all they have just because they lack the necessary knowledge and skill and how to go about it.