Never Be Discouraged, Use This Skills To Boost Your Finances and Increase Your Family Wealth Standards. Number 6 is Necessary.
Money skills are important. if you can master these 7 money skills then you will be able to increase your wealth standard and also boost your personal financial status. Therefore, without further ado here are 7 important money skills to master.
1. Nobody got rich from saving money rather save to invest.
Unless you are saving money in the millions you can’t get rich automatically. Saving money is good, but what you do with the money saved is far better. The importance to saving cash is because of two reasons mostly. First, it’s because saving cash makes you have a safety net. Just in case you lose your job or your means of livelihood you can have cash for like 3-6 month because you can get back on your feet again. Secondly having cash gives you access to opportunity. When you have a good offer you can easily jump on it cause of the cash you have handy.
2. Know the difference between wealth Savings and Liabilities
Wealth is not where you live in and what you drive. Wealth is having tangible asset or physical asset which can be converted to forms that can be used for transactions. Therefore, cars are liabilities if they don’t bring money into your pockets. On the other hand, if the car is meant for rental services then that car is considered an asset.
Therefore, know the difference between liabilities which takes money from you, wealth which is any physical asset and savings which is what you keep aside after paying liabilities.
3. Learn how to use other people’s money
Another skill that should be learnt to increase your earnings to learn how to use other people’s money. this is a skill the poor and average people avoid. Other people’s money is not a bad thing to use. As long as you are not using the loan you get to buy a watch or an expensive liability, others people’s money might just boost your business
4. Need to earn more and spend less
Another skill to learn is to develop the skill of earning. Know how to earn money. know what to do to bring money into your pocket. This is a skill that should be sharpen. Then after learning how to earn then what you need do is to spend less. There is no point in earning good money only to just spend it recklessly. Cutting down on your expenses is as important as earning.
5. Have a retirement plan
The sooner you have a retirement plan the sooner you will retire. Always explore on other retirement plan. The earlier you start working on your retirement plan the better for you.
6. How to safe guard your money
One other skills that is paramount is to safe guard your wealth. And how can you do that you can do that through diversifying. The reason for this is that having all your eggs in one basket in an investment in your country can spell out doom in an event of an unforeseen circumstances.
Diversification, means putting your money in different areas so as to earn your money. this means investing in real estate, buying lands, investing in stock and in other things that will safe guard your wealth. The more your income is diversified the more secured it is.
7. How to make money while you sleep
One of the greatest investors named Warren Buffet say” if you don’t find a way to make money while you sleep, then you will work for money all your life”. Finding a way to make money while you sleep is as important choosing the right investment.
One of the best ways to make money while you sleep is to create a product or services that is selling 247. So, even while you are sleep in Nigeria your product is selling in south Africa.