Money Management Tips for Job Holders

If you have a job you will have a fixed income source. You will receive x amount of money as a salary, you might receive y amount of money as a bonus and other benefits, and z amount of money when you do over time. Let’s say your basic monthly salary is $3000 and you receive $1000 extra for overtime, bonus, or other perks, your income will be $4000. Depending on your company’s policy and your work efficiencies, you might make an additional $1000, however, as a job holder, it is very unlikely for you to make $10,000 (for someone who is generating a $3000 basic salary). You might make a little more if you are promoted and receive a pay hike, but there is a limitation on how much money you can make from your job.

If you have limited income, how do you actually manage your money?

Here are the possible answers.

Learn to budget and manage your cash flow properly

Learn to downsize your lifestyle and cut your expenses to save as much money as you can

Try to invest money in different markets (stocks, real estate, bonds, equity, etc.)

Don’t buy things that will increase your expenses, a car for instance, or switch to an electric car to cut the cost.

How to Build Multiple Sources of Income for Job Holders

As a job holder, you have a limited source of income. When your income is limited you cannot build your wealth as most of the money you earn will end up paying your bills. Therefore, in order to grow your wealth, you will have to build multiple sources of income.

How can you build multiple sources of income when most companies do not allow their employees to work for other employers? Have you heard the proverb: When there is the will, there is the way!

Start doing the side hustle depending on your skills and the resources you have. For instance, if you have a car, you can drive for Uber after office hours, or during the weekends. Or, if you have extra room in your house, you can rent it out and make extra income, you can even have paying guests, or sell rooms via Airbnb.

There is no skill that cannot be monetized. You have cooking skills, you can sell recipe books or even foods. Start a cooking channel on youtube, a cooking blog, etc. You have carpentry skills, you can make money by creating items or teaching people how to make certain things.

There is nothing that cannot be sold. There is a market for anything from breast milk to hair, feet pictures, poop, dirty underwear, you name it. Do some research and see if you can sell.

Money Management Tips: Overcome the Temptation

Managing your money means managing your income and expenses in a way that you manage to save money every month and make investments regularly. When you cannot manage your money properly, your expenses will be higher compared to your income, or even if it is not higher, you spend your entire money and you don’t build savings and investments.

One of the best ways to manage money is by overcoming temptation.

Before we explain what exactly is overcoming temptation, we need to understand what temptation in terms of money management is.

Temptation means you are tempted to buy things that you actually don’t need to live your life and the things that do not help you in any way. For example, if you have an iPhone and Macbook, do you really need an iPad? Do you really need an exercise bike when you don’t have time to use it?

Temptations mean you are tempted to buy things that you already have, for example buying extra pair of shoes, extra bags, extra t-shirts, etc.

These are just a few examples, if you can overcome the temptations and avoid buying things that you don’t actually need and things you already have, you can save a lot of money and use the money to pay debt and make investments.