So many people believe that growing their finances is simply a function of having multiple streams of income. While that is one of the major factors, it is not the only factor that will help you grow your finances. Growing your finance requires a great amount of discipline even more than it requires you to look for ways to increase your income. This is because without the right discipline in place you cannot effectively manage your finances no matter how much they grow.
Discipline is simply you putting yourself under check. It is doing what is required over what is convenient to you at a given time. When it comes to your finance, there are some disciplines you will need to develop to grow your finances. Below are some of the things you will need to avoid
Avoid Increasing Your Net spend With Increase In Net Income
You know that feeling you get when you make extra cash or experience an increase in your income? The feeling that comes upon you and takes hold of you, reminding you of the many things you need to take care of that has not been taken care of, the clothes, accessories or gadgets you have always wanted but never had enough to purchase? I know you have the feeling, and so do the other human beings living on earth. The difference however is in how one manages the feeling.
You must learn to see it as what it is, just a feeling and work to overcome it. To do this, make it a habit to save every extra income you make until you have carefully and critically figured out how to put it to use.
Avoid Unbudgeted Expenses
To grow your finance will require that you pay close attention to your finances – what comes in and what goes out. One way to do this effectively is to have a budget in place. A budget helps you determine what to spend money on, when and how. It is important however that you follow through with your budget strictly. Avoid any unbudgeted expenses, except if there is an emergency.
Avoid Borrowing and Debts
While seeking to grow your finance you need to avoid debt and borrowing. Many persons have the habit of borrowing to spend on liabilities such as clothes, accessories, leisure etc. One of the ways to help you avoid debt or borrowing is to live within your means per time and never to purchase anything you cannot pay for immediately.
In his book, The Rules of Wealth´, Richard Templar advised
It’s so important that I repeat it: don´t borrow money unless you really, really have to. And even then don´t… if someone lends it, they´ll want it back – plus. And that plus is what kills most of us, stops us from becoming prosperous. It has to be nipped in the bud….Avoid Unverified Investment Schemes
Recently, many Nigerians have fallen victims to unverified investment schemes that promised them huge returns on their investments but ended up being a scam. As one who wants to grow your finance, the temptation to put your money in some Ponzi schemes disguised as investment platforms will always be there. You may even have friends come to pressure and reassure you of how self such platforms or schemes are. However, you must ensure you do your due diligence before putting away your hard-earned money on any platform in form of investment. There are so many legitimate and verified investment platforms and channels, seek financial advice from an expert on those.
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