One of the definition of finance that I love so much is that "finance is the management of money and other assets." The way we manage money is quite different because we have different approach to it but the main thing is knowing how to make good use of our finances, no matter the method we might want to apply, we're always headed to one direction which is the proper management of our money and other assets.
Like the popular saying that's trending; "adulthood is a scam" looking at it in the real sense, it might turn to be true if one does not go extra mile, because in this part of the world, life is already leading you by one, so you need to work smart to outsmart it.
Life was much interesting when we were much younger in some aspect, the aspect whereby we don't worry about how we will get money, our parents do the thinking while we keep spending. Some of us are just realizing how hard it's to make money now, whereas then, most of us don't care what our parent go through before they could provide for us.
Now we now how it's to get money, now we're saying adulthood is a scam hehehe.
This kind of economy will humble someone naturally, the price of everything is so high and it's not looking as if it will come down anytime soon.
Well along the line, I've learnt to apply some tips that have been helping my finance and will continue to help. I'll also like to add that there are many ways but I'll be mentioning just three. One is saving, many people will agree with me that one of the ways to manage money is by having savings, I mean having some part of our earnings saved, not spending everything but having some part saved up for any tangible reason best known to the owner of the money. It might be for rainy days, or for a project, for education, for healthcare and so on.
Most times when I want to get something, especially things that is somehow costly I'll just start saving little by little and before I know it, the money will be completed in no time. Many times I've been able to do great things through the money I have saved up before then. Sometimes I just save for no reason and when there's an emergency I use the money I've saved. For someone that don't like borrowing money from people, the best I can do is earn more money so I can save enough for the rainy days.
Moreso, asides saving, what one can also do is investment. But you must note that while investing, there are two things involved, it's either you make profit or run at a loss. Investment can end in any of the two ways, so it's better to understand what you'll be investing in very well before putting in your money. The investment might either be online offline, but it's necessary to have adequate understanding before embarking on such investment. Personally I prefer investing to saving, because with savings, your money won't increase, but will most likely reduce in value. While with the right investment your money will definitely appreciate, so the choice is yours.
The last on my list is understanding scale of preference, in life we all have wants and this wants are insatiable, that's our wants can never be satisfied and then we also have needs, which are more important than our wants. It's necessary to know he difference and also setting a scale of preference is paramount, that's attending to our needs and wants according to their level of importance, first thing first.
When you use the money you ought to buy food with to go clubbing or for boat cruise, that fellow will later have himself or herself to blame, the necessary things meds to be done first before the less important ones.
Understanding how to manage our money and other assets should never be underplayed.