By Sherin; Like my Facebook Page or Follow in Twitter
Do you have good money practice? If no, do you know what it means by good money practice? This article provides you a deep insight to the intelligent money practices that have admired worldwide. Earning, saving, protecting and growing money considers as the best habits that anyone can practice and succeed. This article would provide detailed information on this as well as help you to compare yourself against each point here.
1. Start Saving Early – Early birds would get food fast. Starting early saving practices would help people to reach the goal without much pain because money also grows along with your age. The best time to start this habit is the time when you get your first salary from first job.
2. Let Save and Grow Automatically – Save and grow money automatically using possible options available in the market. Increase contributions to the employer fund or provident fund, starting recurring deposits (RD) with banks to transfer a little amount automatically to the fixed deposits in each month are the best practices to save and grow money automatically.
3. Understand Monthly Cash flow – Have good control over monthly incoming and outgoing money cash flow. Preparing and living in a good budget would help to attain this goal. This is the best practice to prevent unnecessary expenses and money losses.
4. Reserve for a Rainy Day – Prevention is better than cure. You have to save money while earning the same. However, should keep a sufficient percentage of it for the worst times. In simple word, it knows as an emergency fund. Anyone practices good money habits should preserve money for emergency. Best formula to identify how much emergency fund one need is, money equals to one month’s expenses x 6 months.
5. Make a Fence to Defend Uncertainties – Financial protection is a must required action by anyone. Self, family, belongings are the major assets to protect from various situations. Think about insurances to protect from all problems.
6. Be wise when lend – Never fall to debt ridden. This would spoil life and peace. Drop the habits of lending money and excess usage of credit cards. Never allow the debt to grow beyond a level that you can tolerate. However, this practice required personal efficiency and self created money rules. Don’t be a victim of debt that has spoiled the life of millions and their families in the world.
7. Think to Grow – Earning and spending is easy for everyone. From the barter time, this is happening. However, a very little percentage is aware to grow wealth using intelligent options available. Systematic and common sense oriented investment methods would help us to grow our wealth to a great extend. Understand your risk taking capacity and start investing upon that. Goo investments in right equities, mutual funds, commodities, debt instruments or any for long term would help to attain this goal easily.
8. Make Some Extra – Don’t be lazy. You may have a job and earning handsomely. However, you are making the employer richer than you. Think to be your own boss. Start with small setups that could be a source for getting extra income for you. For me, my blogging is my source for extra income. This article, my own active-active-passive model to create income, would give you a good insight on this point.l
9. Be a Good Mentor for Others – It would be your wife, kids or friends or anyone, never suppress your good money habits only to self, but pour it to others who required it. Sharing good practices would bring you fame and happiness.
10. Give Helping Hand – Practice charity as a tool. Charity is a best tool for those who value humanity. It is one of the best investments as well. Always do charity with a certain percentage of money which will never lose.