While it is very important for some of us to make a daily weekly monthly budget, some of us try to live according to the situation when there is no consumer, without making a budget by choosing a “Carpe Diem” life. In this article, we have touched on the issues of how they can manage their existing budgets more logically for those who make a little more budget. We can start by stating that managing money is not the same as just managing savings. Since the path to savings is what you spend from the money that comes in, the expenses are at least as important as the savings.
Here you are! 3 Tips to Manage Your Money Better
Since the amount of expenditure is directly proportional to the income of the person, it is more accurate to talk with the rates instead of the amount. The most famous discourse for this belongs to Senator Elizabeth Warren. That’s the 50/30/20 rule. According to this rule, he recommends that you allocate 50 percent of your income to expenses, 30 percent to pamper yourself, and 20 percent to your savings. While 80 percent is your decision, let’s talk about the basic rules of investment about how you can evaluate 20 percent.
1.Distribute your investment!
Even if you see it as a safe haven, it is very important to distribute the portfolio to reduce the impact of unexpected shocks. In this way, you will reduce your risk. But that means you have to compromise a bit on return, too. At this point, we come to the second most important point. Invest in recurring returns! A return that seems small to you on a monthly basis may exceed your expectations in the long run with the power of the compound return. Therefore, it is also important that the return is uninterrupted, regardless of its size.
2. Invest in assets!
We recommend you to read the book “Rich Dad Poor Dad” written by Robert Kiyosaki in 1997. This book answers exactly how to create returns. On the basis of the book, he explained very important determinations such as invest in assets that bring active returns and let the money work for you, not for the money. We’ve explained how you can use your investment more wisely, but we also need to explain how to protect it. A good economist doesn’t wait to find money on the ground when he walks down the street! This saying actually says that there can be no earning opportunity without risk. In fact, we know from airdrops that this can happen. But it’s wiser to think twice about such campaigns. We recommend that you always approach projects with promises far above the market as a return with a question mark.
3.Calculate the cost of time!
Remember that money depreciates with time. While the currencies of high-inflation countries lose more value over time, this speed is slow in low-inflation countries. But either way, money depreciates over time. For this, you need to protect your money against time. As a result, it would be wisest to manage your savings and then put this money to work. Just as people earn money as they work, your money will increase as they work.