There are scores of graduate programs and degrees that teach you the various aspects of finance but very few teach you how to be a smart money manager and utilize your funds prudently and wisely. All the rich in the world have experience learned to be financially savvy. If you wish to save yourself some heartbreak and become one of the smart ones, start here.

To begin with, everyone who wants to use their hard earned money carefully must learn the very basic skills of budgeting. Besides this, they must become knowledgeable about how credit cards work and how investing for a secure future is as essential as breathing.

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Let’s begin…

Mind over math

While it is true that the actual amount of dollars does matter, it boils down to your mindset as to what you make of the amount you earn. With the right mindset, you will learn to keep your expenditures less than your income without compromising on your lifestyle and your essential needs.

The below points will help you take the first step in becoming a smart money manager.

  1. Set expense limits: Always have a clear-cut goal for your financial future. You don’t need complicated pie graphs and projections to plan your finance; just simple math will do. Calculate a comfortable percentage of your income as savings and ensure you do not touch that portion at any cost. This way, your expenditure amount will be limited and you will perforce be spending within limits.
  2. A credit card is for emergencies: While it is really easy to use the plastic card, you will very soon spiral into debt if you are not careful and are not strict about your credit card purchases. The best way to avoid this scenario is to use them only in a dire emergency and not for your regular routine shopping.
  3. Cut down on unnecessary expenses: In the present world, there is a constant onslaught on your senses and your purses from online shopping sites besides the regular brick and mortar stores. You are forever lured to buy things at a discount. Since the human psyche always wants more for less you get conned into buying stuff you don’t need in the process harming your finances without even realizing. Hence, buy only essentials and not things you think you might need somewhere in the distant future.

With a little bit of forethought and planning, it is not difficult to manage your funds comfortably and in a profitable manner.

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