Esther Odediran
The golden rules of making money is easy yet complicated. The same way we have rules in doing our daily routine, we should also have rules guiding our finance. Rules are necessary for finances. It creates stability, accountability and discipline. There are certain golden rules that most successful people apply.
The golden rules are lists of money rules to live with. These rules help in making life changing decisions. Most times we promise ourselves to have a reserve at the end of the month but usually fail. Money management is a skill everyone must learn. Afterall, making money is believed to be the yardstick for success.
Too much of money and lack of it can cause emotional damage so you need to be a master of it. An improper use of money will be to your disadvantage. However, play the game of money by knowing the rules and you will see a world of abundant money and money will work for you. It is your knowledge of money that will keep you rich not even investments.
Here are Some Golden Rules to Apply
1. Don’t be ashamed to talk about money
Once in a while have a open conversation about your finances to someone. This will help you to be accountable for your financial decisions.
2. Make assessment of past financial mistakes
Believe me most mismanagement happens from lack of assessment.
3. Make a money plan
For example; feeding money can be taken from salary and transport fare from a return of investment.
4. Expenses should be lesser than income
In simple term, spend less than you make.
5. Establish an emergency fund
You should have provision for anonymous expenses.
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6. Avoid debt
If you don’t have the finance don’t go for it. Be the one collecting interest payments.
7. Pay debts as soon as possible.
Debt discourages savings. Always pay debt as soon as you have provisions.
8. Have money goals.
This will keep you motivated. When you have a bigger money goal in mind then you will be more disciplined about how to spend it.
9. Know your savings percentage.
To get this divide your savings from your annual income multiplied by 100. E.g. You saved a total of N2,000. Your annual income is N50,000. Your Savings Percentage = (2,000 / 50,000) x 100 = 4%
10. Be willing to help
In everything, do not keep a tight fist. Sometimes We feel the need to hold onto our money so tightly that it won’t go away. However, it is a blessing to open up your tight fist and be generous to others. Be of help to someone else. You can have a budget to help others.
