My dear Thinette
Managing your money must be a goal in itself, my dear. Know your love-affair with money, and make sure you are in charge.
Learning how to budget your money, to know how much you have and what you are going to do with it, is a huge responsibility.
Living within your limits have great advantages, my dear.
It will help you stay out of debt or get caught up in unexpected costs.
When you need to get funds from a financing company to buy a car or a house you will have a good credit record.
Save sufficient money for a well deserved holiday.
What Value does Money Have
The way you think about the purpose of money will have an influence on all relationships my dear. How important is money to you, where would you rank it.
Is it high on the list, normal or not important? A means of survival, a means to comfort or a means to luxury.
Find a definition for money, what is it’s value in your life. Is important to show off long rows of cards in your purse? You have to have the basics but what else would you like to have?
The way you think about money will have an effect when choosing a career, the planning of your future and how to get control over your money.
When for the first time did the use of money made an impression on you. What impact did it have on your outlook, how did it influence your beliefs, maybe inspires you?
Mine was a picture of a yacht in a glossy magazine, the interior was spacious and decorated with navy and white with bright sunny yellow cushions.
It spelt affluence and made such an impact on me but it only stayed a dream and an image. I never made it became a reality yet but is not forgotten. It is at the back of my mind, simmering! I still see myself on a yacht in the Med.
Only a few people with a vision, a plan and dedication will make it come true.
It lies in everybody’s ability, you have to have the Desire, a desire that overrules it all, Determination Persistence and Discipline to make it real, no matter the circumstances. It is up to you to be on a mission!
Have respect for Money.
When you don’t value and respect money, it will keep rolling out your pocket. It will take a great amount of discipline to manage your money.
Be money-wise by managing your money with an iron fist. Know all the how what and why of money to stay clear of the debt trap, buying with money you do not have.
Make sure not to fall in the trap and the wicked ways of commerce. With all the enticing advertisements they want to rid you of your last cent, to keep you poor. This way you will live from paycheck to paycheck for the rest of your life.
It goes along with everything else, planning is the key. Plan to buy only quality goods. Buying cheap is buying double.
Rather be patient and save till you can pay cash for what you want. Quality timeless furniture, linen, cutlery, clothes, etc. last for decades and save you so much over time.
Plan to make money work for you, if not, you work for money all your life and get nowhere.
Work hard and work smart.
How will I earn my Money
There are only two ways of looking at this love. Either have a mission that you love and it might not pay well or do what you don’t like and just go for the money it pays. It is either ‘job-satisfaction’ or a huge bank account. Very seldom you have both, but it is worth searching for a mission to give it to you.
Don’t let your choice of ‘career’ let you have two personalities, my dear. To be a different person owning your money during the week, and only become yourself over weekends.
Skills to Acquire
To find the skill you love and be prepared to do it even if you don’t get paid is your true passion.
Have you thought of it this way, every job on earth has the purpose of solving a problem for someone? Find the way you want to serve people.
Also, very important, choose what will not be made redundant in the next decade. Go with the new digital era, to be in a serves industry is very good too.
Technology will change the face of the workplace as we know it and many careers will fall away and disappear with the coming of the robot technology and automation.
Do some research on all these aspects to make an informed decision in the field of your choice. A service-based mission and online business seem to have a longer lifespan at this moment.
Paper knowledge is not all-important, practical skills with experience are more in demand. To specialise and have a unique skill is more profitable.
The best thing you can ever do for your financial future is to invest in yourself. Do the best training you can afford, develop a high-end skill and set financial goals. Here are a couple of basic rules to follow.
~ Never choose an everyday skill and earn mediocre money, don’t be another drop in an ocean. Equip yourself with unique skills to earn more money. Find a high-end skill and develop your knowledge and experience to the highest degree.
~ Not necessarily academic, but become the best in your field. Read and learn, read and learn as much as you can. Go out and APPLY what you have learned to gain experience to become the expert. Only when you are an expert you become an authority and will earn the best!
Steps How To Manage Your Money
Start planning and chase that dream, my dear. Make it a goal to manage your money. Compromise to make it a reality, because everything is possible if you set your mind to it!
Have you ever dream of having a Lamborghini like Simon Cowell, a house on the beach like Britney Spears? How about an island like Richard Branson? No, it is not a sin, it can become your inspiration to live your dream!
To just dream about it is a waste of time. If you can look without envy and use it as motivation, that makes sense. Start creating your plan of action.
Why do you think attorneys, accountants and other highly skilled people get paid more? They have specific specialized skills that define them from the rest. The more experience they have the better their reputation, earning them more. If you don’t earn enough you have the level of skills of the majority of people. Make sure not to have this income problem.
Know where your money is going, keep track of every cent. Have a little notebook handy and write down expenditure as it happens.
Do a test for thirty days.
Keep tags on all your spending.
Name and file all receipts, note their purpose.
Keep a daily record of all you are spending on, what it is and why did you need it.
After thirty days you will have a pretty clear picture of the trend in the way you spend your money uncontrollably, see if it is working for you. If you are not happy, name and shame yourself. Adjust and be disciplined to make it work for you.
Most people only live for the NOW, thinking they will stay young forever, have a job forever, and live forever. The reality of old age, losing a job and death do not occur to them.
Planning, plotting and scheming your future, how to do best for you and your family is very important. Do not just live, overspend, enjoy life as if there is no tomorrow, and be out on the street without any money at old age.
To live life without giving this a thought, will be meaningless. Do some planning and live with a vision.
What is the meaning of a budget? To know what happened to your money after it landed into your account. Budget is just another word for planning the spending of your hard-earned money. You draw up a framework with all the aspects of importance and add your information.
How much money you should spend on different expenses. It is the proposed way to spend your earnings wisely, remember never spend more than you earn.
If ends do not meet you will have to cut on certain issues or find a better-paid job. Always stay within your limits, this is not negotiable, it has to happen. Do some proper planning.
Items that should be on your budget framework list are all your monthly responsibilities and all other expenses.
It is important for you to have a roof over your head, sleep, eat, clothes, drive, feel safe and be healthy.
Save during the year to have at least one paychecks in your savings account, and do not touch it until the 3rd of January the next year. If you earn $5000 pm, save at least $50 or 10% every month in your lifesaver account.
It will rescue you when having an extra salary after Christmas and New Year to pull you through until the next payday. You always over spend, and putting away a little every month will be a lifesaver.
Have a long term untouchable savings account, earmarked for retirement and short term savings account for everyday use.
Have a savings account for emergencies, my dear. The TV or washing machine breakdown without any notice.
Managing Your Money
Start small and keep costs low in the beginning. Find your feet before you start running, my dear.
People and friends will respect you when you plan wisely and stay out of debt. Never leave a purse empty says the superstitious.
Avoid paying with plastic card money, my dear, meaning your credit card. Have a savings account and pay all from there.
It is satisfying to see how you grow, from the humble beginnings of second-hand furniture to the empire you are building, it is very rewarding.
Having a clean well maintained a humble warm home is far better and more welcoming than a state-of-the-art house, cold clinical and messy.
Stick to your budget and grow slowly with patience.
Steps to Keep Track of Your Money
How to Prioritize
How do I know what is important and what has priority? Start with your needs. What would you need to live every day?
Pay yourself first every month at least 10 % of your gross earnings into a one-way account, only depositing but never withdrawing from it.
This is savings you never touch until the age of sixty. This becomes part of your retirement fund. By the time you reach retirement, funds are never enough to see you through my dear.
Start from day one! You will not even miss the money, but, it will make a world of difference for you at old age.
Compulsory Payments of your Budget
Household Bills and Mortgage
A place to stay, by the means of moving in with some housemates or rent a place. It will all depend on the budget. Moving in with a friend is wise, furthermore, save diligently to get your own place. Have at least three times the earnings you get in reserve.
Utility bill for the usage of electricity, water and taxes if you are an owner. Remember there is a deposit to be paid too.
Transport and Medical Aid
A car payment, insurance and fuel whether it is your own or a contribution to a transport club.
Medical aid scheme. Getting sick is very expensive my dear. The best is to join a medical aid scheme on the level you can afford. Ask the company you work for if they have a medical aid contribution?
Variables Every Month for your Budget
Plan your menus and buy in advance every week, in addition, stick to your budget and not buy some Wants. Treat yourself with Take-A-Ways once a week or month and make it a feast, but that is it, no more for the rest of the month.
Pay yourself an allowance, to buy new clothes, shoes, cosmetics. Never by on account. Save in advance for an item you really want for winter.
Set aside money for gifts, dinners out, weekend outings, sport etc. budget for these too and see what you can and what you can’t.
Prepare and save in advance for your annual holiday coming up. Pay accommodation in advance and set aside spending and travel money. If you have Timeshare, save monthly during the year to be able to pay the levies when it is due.
The last on your list. Drinks and sundowners deserve their own spot and should be planned. A busy social life, restaurants and bars can easily get out of control and be the budget killer.
Limit yourself and make an estimated usage for the month. This is an item that depends on how good your budget is. If there is money you can allow if not you have to cut, my dear.
Tips How to Save Money at Home
It is not just saving money that is important love, as a matter of fact, it is saving on the small things and everything else from food, electricity, clothes, fuel etc.
During summer close the windows, curtains and blinds at nine in the morning to keep it cool. Use fans and if you have to use the air conditioner keep it at 23*C.
During winter keep windows, curtains, blinds and doors closed to prevent droughts. Open the windows at midday for fresh air. Set the central heating at 20*C.
Buy clothes when shops have sales to get rid of old seasonal stock, normally during February and then again in August. Keep an eye open.
Use LED lights bulbs and always switch the lights off when leaving a room.
When boiling the kettle for tea, pour the rest of the boiling water in a thermos flask for tea and coffee later, all elements use more electricity.
Try to use the oven of the stove sparingly for the same reason.
Close the tap when brushing your teeth.
No need for a full bath of water, treat yourself on one lux full bubble bath a week. A shower uses much less water.
Grow your own herbs in pots on the window sill, it looks pretty and saves you money. Grow your own veggies if you have a garden it is therapeutic too. Nothing better than tomatoes and lettuce fresh from the garden. Containers on a balcony work too.
When out on a weekend trip visit some farm stalls to get fresh organic vegetables and fruit. It is better quality and more healthy.
Plan your menus for a week at a time, buy your supplies on a Saturday and portioned it for the week to come. It saves you a trip during the week and saves money.
Tips to Stick to
Be adaptable. Have the lenience in the funds in the case of an unforeseen emergency. Always be ready. Never live to the last cent with your funds.
The long term savings account speaks for itself, a one-way account. Have a debit order taking care of it and forget about it. Let it grow and later you can make an investment in a commodity that will grow more. This is untouchable savings. Get rid of the ATM card.
A short term savings account can serve many purposes from saving for a new car, TV, holiday, etc it is there for your discrete use for things you need.
Know what the purpose of your money should be my dear. Managing your money wisely, most of all, plan thoroughly and start early.
Decide you are not going to be satisfied with a mediocre future, change your mindset. Become one of the 1% thinking and start planning to become a wealthy person!
Take an oath not to chase the bling-bling empty commercial stuff found in advertisements, that steals your money.
My dear, you are starting with a blank page, do it right from the start and do not fall into the trap of debt, please.
Do not spend money you do not have!
Rowena Tsai says “If you don’t rise to the level of your goals, you fail at the level of your systems.”
Don’t wait till later, start immediately!
Your loving grandma
Inspire Motivate And Empower The Next Generation