Wise Money Management

Wise Money Management

By Rodney C. Ramirez

HAVE YOU FIGURED out how to earn your first million pesos? You have at least two choices to achieve this. You may follow the lead of some who play the lotto or join game shows which offer millions as jackpot prize. If you choose this path however, you must recognize the fact that being blessed with the good fortune of picking out the lucky numbers or being given easy trivia question is as rare as hail in summer. However you can still become a millionaire without playing the number game or joining game shows. This is through wise money management.

How do you practise wise money management? Well, here are few tips from Oprah Winfrey, the talk show hostess who is a self-made millionaire herself. First, live within, not above your means. Do not keep up with your neighbours in their spending binges. This is the shortest cut to being penniless. If you own credit cards, get rid of them. Always pay your purchases in cash.

Remember, borrowed money always has interest attached to it. Besides you can always go on a shopping spree because you do not feel the pinch in your wallet, at least, not at the very instant you make a purchase.  If you also have an ATM card, minimize your dependence on it. This and your credit cards only encourage you to buy, buy and buy.

          If you subscribe to cable television, better cancel it or switch to another provider which offers fewer channels for a lower fee. You only need a few channels to choose from to get your daily dose of entertainment. Also, limit your subscription to only one newspaper or magazine. Savings from these alone could amount to thousands of pesos at the end of the year.

          Eat a healthy diet. Remember, health is wealth. The less you get sick, the more money you save.

          Be simple in the way you dress and do things. Do not get very fashion-conscious or easily affected by what other people might say. They are not the ones paying for your clothes or your good looks.

Cook your own meals and avoid food wastage. Eating out or having food delivered from a fast food outlet will add to your expenses.

Keep your savings in a time deposit account for a higher interest rate or invest them in what you are sure is a sound and viable investment. Then you can sit back and watch your money grow. It may be a long and slow process but by the time you reach the age of 60,  you could enjoy your millions from interest alone.

Reflection:

          How do you manage money wisely?

Wise money management can bring you millions in the future.

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External link: Lecture on Production and Operations Management