We are all faced with the big problem which is how to manage money effectively – a problem faced by many young adults in our generation. You will hear questions related to the following: managing money tips, how to manage your money better, how to manage money wisely, how to manage money effectively, managing money app, how to manage your money worksheets, how to manage money in your 20s, how to budget your money etc.
Managing money or finances is absolutely crucial in our world today and people are more of a CONSUMER than a PRODUCER.
The top richest men and women you see on Forbes are more of a PRODUCER than a CONSUMER.
Often times ‘financially stressed’ people are busy buying products and services made by the PRODUCERS. They buy something they want (but don’t necessary need) with their cash (which ends up going to the producers).
So if you are more of a consumer than a producer (which is the more common problem) here’s a few ways you can redress the problem:
1. Cut Down on Your Consumption of Goods and Services
TIP: Whenever you are tempted to buy a new product/service, hold off for a week, and after that time period re-access whether you actually need the product/service – nine times out of ten you won’t buy it.
2. Do an Inventory of All the Services/Products
Do an inventory of all the services/products you pay for on a regular basis – then only keep the ones you absolutely need (rent, insurance, etc.). Get rid of the rest, see how you do without them for a month, if at the end of the month you haven’t missed them, then good, you have saved some cash.
3. Become More of a Producer
This can be done step-by-step, but it must be done to get in balance. You can do this by becoming more valuable in your work, so getting promoted or given a raise (Tip: Why not take a night class to improve your qualifications), or start a job on the side making a product, selling a service, writing a book etc. to grow your income rather than depleting it.