Ask Leo: What are some basic financial expenditure principles?
What are some financial principles for expenditure?
Financial management is very important especially in the bearish moment we are into now.
If an investor or trader fails to plan financial expenditure now then plans to fail.
Financial management entails planning, organising and utilising all the financial records for an organisation over a period of time.
I will share some basic workable principles on how financial expenditure management.
1. Plan your finances.
Planning or organising your finances is a fundamental pathway in creating wealth. This entails putting together all financial schedule into budget in order curtail unnecessary expenditure. When you begin to spend outside your plan then more expenses will be incurred.
2. Invest consistently.
This principle is vital. Human needs may have no end because as each day unveil itself, more spectacular needs are emerged. For instance, if an investor continue to invest 2% every day of his income just imagine what would happen in twenty years time or before retiring age. A millionaire would be even carelessly or unconsciously.
3. Don't spend more than your income.
Don't live to create an impression of what you are not. Spend less than your income. One strategy to overcome unnecessary debt is not to spend more above your earnings. Be prudent and spend wisely.
4. Personal development.
Grow and educate yourself with new trend and changes in the financial world. Make researches to identify other people's weaknesses in order to correct yourself.
Network with others and source for other investment opening.
5. Plan for Contingencies.
Always plan for unforseen circumstances by making plans to save more resources that could be used to combat any need without affecting the long term goals.
Study and understand risk management. Diversify your income source whether by acquiring more skills or converting some Tallent or gifts to monetary value this will reduce some expenditure even in this bearish period.
In crypto, buy other coins that are low so that when it raises you would make gain.
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