Money Management: Financial Lasting principles
These are really trying times and a lot of people have lost their jobs during this period as a result of companies closing down due to the strong effect of the pandemic, although the pandemic seem to be disappearing gradually it still has a lot of effect on the financial growth of so many people. The pandemic however taught us the necessity of not consuming everything we have, it has taught us vital lessons on the need to cut down cost and make important decisions when it comes to handling our finance.
Define the tactics to achieve your financial target.
If you plan to save $6000 at the end of the year, you need to also make plans about the amount you want to save monthly in order to get to the goal of getting $6000 at the end of the year, if you do not break down your financial plan to a monthly target, you might not be able to achieve the desired plan at the end of the day.
Do not go into debt for things that may lose value.
Getting into debt for items that may lose their value quickly will never help you build or sustain a wealth pattern, if you will ever get into debt make sure it is for a commodity that will yield a profitable return after some time.
Avoid high interest debt.
High interest debt are financially draining debts, if you will ever get into a debt for a good reason which has been mentioned above, look for debts that you can obtain at a low rate without giving back all your profit to them.
Find ways to defer taxes.
In some countries taxes are really high and they take almost all the benefits of workers but there are ways around these taxes, it is possible to pay less tax legally but this is peculiar to each country, you will have to find out which one is available in the country where you live and follow that pattern to get your tax paid.
Apart from saving your funds, learn to invest your funds.
Saving is a good way to keep your funds but it is even better when you are able to invest it and the value appreciates. Learn the habit of investing when trying to manage funds, it is a way to build a sustainable pattern of financial growth.