5 Personal Finance Habits You Should Develop Now!

Photo credit - Igeeksblog.com

Managing your money efficiently is very crucial for your success as an Entrepreneur. Money is very important for our living so we are going to show you below , how to manage it.

1. Always make a Budget : Know where your money your money is going and where it’s coming from and at which rate( daily, weekly, monthly or yearly) . Always budget your income before you spend it. As you receive your salary at the end of the month , draw a budget before spending it . This is to enable you control your expenditures in order to avoid “Mid-month or close-to-end-of-the-month cashflow problems”. This applies too to those who have more than one source of income .
2. Always do comparisons when shopping : When shopping , always look for the best prices. When exploring the shelves of the supermarket look for the cheapest of what you want to buy. Cheap doesn’t necessarily mean good quality. At times the cheapest products are the most awful products. Look for the quality-type you want at the cheapest price. Do even Mall-to-Mall comparisons ; what may be cheap here , may be expensive there and so on.
3. Negotiate Prices : Negotiate prices anytime you are buying something that is so expensive that it takes a large portion of your income, For example : a house, in order to save some money and attend to other needs . You may decide to negotiate the prices of everything you buy. That’s your choice but from our own experience, people always negotiate the prices of commodities that takes a large portion of their income.
4. Treat your finances like a business : When spending your money, record it in order to track your expenses. If you don’t do so, you will always find yourself not knowing how you spent your money. Like in a business always minimize cost to achieve the best results. In Personal Finance, the main aim is not profit but it’s getting maximum satisfaction at the least cost possible.
5. Reduce Debt : Do not live on credit because you want to live above your means. Always live within your means . Do not go above. If you want to spend more than you earn then look for more sources of income. Cease from the habit of always crossing your Credit Card limit just because you want to buy a Gucci bag to amaze your friends. You will buy the Gucci bag and stay hungry.