05/10/2020

How To Be More Successful In Managing Your Finances

Being successful in managing your finances does not come down to how much you earn. In this post, I offer a number of different perspectives which I hope will help you manage your finances more successfully.

It Is Not What You Earn

Managing Your Finances Successfully

Your salary is only one potential source of income, unless you are self-employed, you have very little control over increases. Annual cost of living raises and performance-related bonuses are good to have but they are not predictable.

Additionally, if the company you are working for downsizes, you may find all of your income gone overnight. Many people work in jobs they hate just for the money. This must be a miserable existence. The first tip for being more successful in managing your finances is: it is not what you earn but what you save that will make you rich.

Save Then Spend

Most people spend and then save. This often results in more month than money and Mr Credit Card is used to cover the last week or so. This starts a vicious cycle of debt.

Every family, regardless of their income, should have a budget. Whilst some bills are fixed such as rent and school fees, there are others which are more easily controlled. Sadly many people I speak to are unable to account for a large percentage of this expenditure.

That money has taken time and effort to earn. So spending a few minutes each month deciding how it will be spent makes sense. Microsoft Excel has many budgeting spreadsheets and there are many apps on the AppStore and Google Play to help you monitor your expenses on the go. After a few months, patterns appear and this knowledge helps you control your spending. The second tip for being more successful in managing your finances is: save then spend.

Tips To Save Money

Saving money is a habit. Like any habit, it takes time to acquire. There are some great resources available on the internet such as the Facebook Group Shop Well For Less UAE.

Often clients tell me that saving is difficult at first but setting short term, achievable goals helps. Then when a goal is achieved having a small celebration.

These celebrations and their growing bank balance provide them with greater financial well-being and peace of mind, knowing their finances are on the right track.

Develop Other Income Sources

Imagine a scenario where the income from your job did not affect your standard of living. How would you feel? What changes would you make to your life? Would you change your career?

For most this is a long term project but it starts with the simple idea of not spending all of your earnings. Building a capital base month by month, year by year. Investing and then reinvesting.

By having more than one source of income, you create greater financial security for you and your family. The third tip for being more successful in managing your finances is: develop other sources of income.

Success in Managing Your Finances

Money takes time and effort to earn. Therefore it should be used carefully, allocating resources to meet our current and future needs.

Building alternative sources of income should be a priority. Having multiple sources of income (rather than a just a salary) provides you and your family with greater financial security. It also provides you with greater choice of what you do with your time.

If you have any questions, book a call with me by clicking this link, or complete our contact me form; or call 050 594 5217 for a free, no-obligation review of the options.

ABOUT STUART

Stuart Porter - Expat Financial Advisor UAE
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