Making money becomes predictable if one has some level of knowledge as regards money matters. There are things one needs to know to generate cash flow. Below are some tips if applied will keep cash coming in.
1. Give priority to assets than liabilities: Liabilities take money away from you, but assets put money in your hand. If you have a house, you spend money on repairs and maintenance and do not have any reasonable source of income to foot the bill, that house has become a liability. A car can be a liability if you spend so much money on it and you are not getting returns. If you are not making money with your smart phone, then it has become a liability, because you spend money on airtime and data subscription. Invest your money on something that generate cash than on things that take money from you.
2. Do not increase your expense when you get a raise, profit, gift etc. What is weighing many people down financially is that there is this tendency of increasing their expenses when they get a raise in their monthly Stipends as employees or gain profit from their investment. If you want to keep generating cash, even if someone gifted you with some money, you need to control yourself and plan with it.
3. Curtail impulse purchases: Many today run into debt and live below average because they are fond of buying things by their emotions. Buying things not budgeted for has adverse effect on your cash flow. To enjoy financial flow and freedom, always plan your purchases. Do not be carried away by your feelings.
4. Spend less than you earn: How much you earn is less important than how much you keep. The problem of many today is, they lack that control of spending less than they earn. Money comes in and goes. Financial discipline is a must if one wants to live financially independent.
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1. Give priority to assets than liabilities: Liabilities take money away from you, but assets put money in your hand. If you have a house, you spend money on repairs and maintenance and do not have any reasonable source of income to foot the bill, that house has become a liability. A car can be a liability if you spend so much money on it and you are not getting returns. If you are not making money with your smart phone, then it has become a liability, because you spend money on airtime and data subscription. Invest your money on something that generate cash than on things that take money from you.
2. Do not increase your expense when you get a raise, profit, gift etc. What is weighing many people down financially is that there is this tendency of increasing their expenses when they get a raise in their monthly Stipends as employees or gain profit from their investment. If you want to keep generating cash, even if someone gifted you with some money, you need to control yourself and plan with it.
3. Curtail impulse purchases: Many today run into debt and live below average because they are fond of buying things by their emotions. Buying things not budgeted for has adverse effect on your cash flow. To enjoy financial flow and freedom, always plan your purchases. Do not be carried away by your feelings.
4. Spend less than you earn: How much you earn is less important than how much you keep. The problem of many today is, they lack that control of spending less than they earn. Money comes in and goes. Financial discipline is a must if one wants to live financially independent.
Feel free to comment and share.
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