The Money Management Blog

Yes! It Matters!

   Jul 16

Why Money Management Is Important

Money is a great tool. Money allows us to do transactions. Without money, we would have a hard time buying and selling things we want. Today in this post, we are not just talking about uses of money. We want to talk about the uses of Managing Money.

Many people in their lives want to earn a lot of money. They want to have a high paying job, with pays them lots and lots of money and awesome perks. They want to build a business that keep giving them sales after sales after sales. With all these, money will just keep flowing into your pocket! I’m sure you’re imagining lots of dollar notes inside your bank now!

However, picture another image. However much money you put into your bank, they all flow out! You put in $100, $100 will flow out. Even if you earn more money at $10,000, $10,000 flows out too. What exactly is happening here? Now, this is the problem of money management. Nobody cares about managing their money. People only care about making more money coming into their pockets, but never bother about the money that is flowing out.

That is what this post about managing money is about! Control your outflow of money!

If you have studied the rich, you will see that not only do they earn lots of money from their businesses, stocks, or assets, they also control their money very well. You may be deceived that they will spend their money on posh cars, luxurious houses, or exotic holidays… but the truth is far from that! You never see they spend so much money, unless they can earn 10 times more back from their business!

However, if you look at poorer people, they spend whatever money they have, and worse of all, they spend more than what they have! They go on credit card loans, or huge mortgages to buy houses that they cannot afford to pay. They hope that by taking credit loans, they can get through the tough times, and if their property price rises, they can pay off the debt then.

This is a huge risk taking action, and definitely not a smart way to manage your money. Thus, this blog is here to teach you how to manage your money, so no matter how much money is flowing in or out, you can still call yourself RICH!