People make mistakes that invariably cause major upheavals in their lives. Some mistakes can cause suffering and misery later on when the person gets older. A good number of these mistakes relate mostly to how a person has handled money matters in his life.
I thought of writing this article to provide what I feel are intelligent actions that relate to how money matters should be handled to create a more sustainable life. My hope is you can learn from the mistakes I have made.
Learn about Personal Finance Early On
Don't let yourself grow to become old and broke. Learn the basics of personal finance early on in your life so that you can make investments that will give you an edge when you get old and unable to work for a living.
There are three areas where you can invest your money in the hope of having something to lean on when the rough times set in. You should at least make a few successful investments in real estate, stocks, and the Internet.
One thing that you can try in real estate is just to acquire an old house and make incremental improvements on it. Once you're finished with the improvements, you can sell the house for a profit. You can then use the proceeds of the sale to buy another old house that you can improve. Another option is to acquire and remodel an old house and rent it to students, young couples, or single professionals.
Educate yourself on the best way of investing in stocks and bonds. If you want your money to be relatively safe, invest on a reputable mutual fund. After gaining a foothold on mutual funds, you can then decide whether it will be worthwhile for you to do serious investing in particular stocks and bonds.
Find income generating opportunities in the Internet. There are money-making schemes in the Internet from where you can choose which one would have a good fit with your present capabilities. If you have specific knowledge that you can share, you could for a start create a website and incorporate paying advertisements in your site.
Have an Uncompromising and Steadfast Policy with respect to Money
The basic rule is don't let money control your life. Let you instead control your money for the enrichment and enjoyment of your life. Your learning on personal finance will provide you with all the information you will need to develop your own unique perspective toward money. You will then be able to develop your own attitude and guidelines that you can use to maintain control over whatever money you will get your hands on. It is not enough to have the correct attitude and know-how for the management of your financial resources. You must be able to use these concepts in deciding on investments and expenses that you will make later on.
Always be Developing New Income Streams
Identify your skills and capabilities that can provide new income streams. With your talent and passion, you can either start a small business or do consultancy or professional work for people who might need your services. An example would be teaching skills part time or providing services on an ad hoc basis. If you have skills on computers, you may offer your services for a fee to solve the computer problems of people in your neighborhood. Be creative in identifying new income sources that can be developed.
Cultivate the Saving Habit
Make a habit of keeping a portion of your income as savings for the uncertain future. This amount should only be used in the event that you unexpectedly lose your job or source of livelihood. Depending on your personality, you can target an amount that can tide you over for the next three, six or twelve months, or perhaps two or three years.
Don't waste your money on unnecessary things that do not add value to yourself or your loved ones. Always be on the lookout for cost items that you can reduce or possibly eliminate. Use your creativity in coming up with unique solutions. Don't buy a big ticket item that you cannot treat as an investment. An investment is something that will provide a payoff in terms of getting you closer to your tactical or strategic objective. If it does not, then you probably don't need to spend money on it.
Eliminate All Wastage from your Life
Don't waste your money on foods that do not make your body healthier. Eat only what you need to perform the work that you do. Plan your activities to reduce your overall energy consumption. Stop wasting unneeded electric power and recycle the water you use for other purposes. Think of creative ways to recycle part of your wastes for other useful purposes.
Plan your waste reduction by prioritizing those projects that will generate the most savings in costs. Food and energy are two of the worst wastage producing activities that you can start reducing wastes on.
Take from Mother Earth only what you need to live a decent life. Leave something for the next generation of people that will inherit the planet.
A New Way of Giving
Don't forget to share your blessings with the less fortunate people on earth. Giving does not only mean donating money for causes that you think are worthy. You can also give services to the poor or marginalized people by volunteering to work with non-governmental organizations whose visions you share. Search for groups that focus their efforts on providing less fortunate children with a brighter future and offer to help them in any way you can. You can also create your own group that would cater to social segments that you feel are neglected by other aid groups. Use the Internet in forming and mobilizing your own group.
Have a Brighter Financial Future
By incorporating some of these ideas in your personal finance activities, you may be able to secure a more sustainable financial future. You can then avoid the frustrations and headaches that can hit you hard at a time when you are most vulnerable.
Read my other article on a few ideas on cutting household costs at: http://sites.google.com/site/ournewapproach/a-few-ideas-for-cutting-on-household-costs.
Read my other article on getting proactive and being happier when you grow old at: http://sites.google.com/site/ournewapproach/get-proactive-and-be-happier-says-a-sorry-old-man.
Read n article on how you can turn your old desktop equipment into peripherals for your new laptop at: http://sites.google.com/site/thetechnicaljournal/turn-your-old-desktop-equipment-into-peripherals-for-your-laptop.
Read an article on how to publish online at minimal cost using free software and potentially make money at: http://publishtoweb.blogspot.com/2011/11/publish-online-at-minimal-cost-using.html.
Read an article on a common sense approach to investing in a laptop at: http://laptopwriting.blogspot.com/2010/01/common-sense-approach-to-investing-in.html.