Everyone wants to have lots of money for obvious reasons that come with being rich and sometimes the line between your being rich and poor are your personal financial skills. Your money management skills can greatly affect how well you do financially
Having good personal financial skills will help you meet your day to day financial activities and current financial resources to meet your long term financial stability
Here are 10 financial management skills you should have to help your in your everyday life running of your finances as they are all applicable and not just theoretical.
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This is one of the best financial skills or money handling skills you can have in life. If you can’t save anything after your expenses how will you be able to handle emergencies as the saved money would really come in handy during these moments. And it’s this saved money that you can use to meet other financial plans
Do you work on a budget or do you extravagantly spend money anyhow since it’s available. One of the ways you can improve your personal money management skills is by working on a budget. It’s not being a cheapskate but also a way to excise self-control.
Having a budget would also help you live within your means thus avoiding borrowing which will keep your finances in check
3. Learn to aviod and get out of debts.
One time or another you are going to need someone to bail out of a financial problem and you will need them to lend you some money.
Having good financial skills will help learn to avoid getting into debts like through saving and if you get a debt, you will also learn to be able to get out of the debt by using the money for what it was borrowed for
This is also very useful as a lot of people end up losing their businesses to loan sharks due to failure to handle and manage their debts very well
4. Investing with the avaliable resources
One of the best money management skills you can have is investigating the money you have at hand. It’s one of the reasons some people keep getting richer, it’s because they have many investments that are bringing in more money for them
You could be surprised this is a skill but yes it is. Why pay more when you can get the same exact item at a bargain. It’s these small underestimated skills that could be the break or make in your finances
This could also involve bargain hunting and knowing the prevailing market prices of an item. Don’t just pay unnecessarily more than what an item is worth just because you have the money or out of ignorance
6. Doing taxes
This is not anything to do with your workplace but yes certain taxes apply to us and how we handle them could save us a lot of money let alone hiring someone else to do them for you when you can do them yourself
7. Accounting and procedures
Much as this sounds work-oriented. You need to know how the whole accounts books and balancing work and not just to necessarily apply in your everyday life but also as a way of monitoring your investments to measure if there are any returns on investments. This is also useful when making personal budgets
This would also involve creating a personal balance and a cash flow statement to track where most of your money is being spent and act accordingly
8. Knowing your wants and needs
This is not necessarily a skill but comes in handy when handling finances, for example, you can want a car but you don’t need it as you can use a train. The good decision made from this kind of information can greatly influence how your finances are going to end for example you could borrow money to buy a car you don’t need which will again affect your finances as you try to pay the debt
9. Set goals and plans
How can you handle money that is not planned for? You could go and spend it all in one day because the money wasn’t planned to achieve anything to start with. The planning would also help practice good financial discipline
10. Be analytical
This is not only important in the workplace but also when handling your own money. This will help you make informed relevant decisions to improve your finances
Attaining all the above financial skills would have a strong, effect on finances as they greatly affect your money hand handling habits. Check yourself and which of those skills do you possess and which ones should you learn