Money can travel the world, but it cannot buy happiness. "The lust for money is the root of all evil," but in order to survive in this society, we need this money at work. Money is desired by almost everyone, but most people do not feel comfortable talking about it.
Are you thinking about this money? In fact, with money people can do five things: earn, spend, save, invest, and donate. However, in order to do these things, you have to face many kinds of questions! So the following tips will help you think and plan on these issues:
1. Income
Most people have to earn somehow. No matter how you earn that money, you must first decide how much money you really need to survive on this income.
Many fall into the trap of working more than they need to, because they can't say no to making extra money. They work overtime to earn extra money, ignoring their time towards themselves, family, friends, religious places of worship and society. Instead, they could invest their time in various social and religious activities. Again there are some who do not want to work, this is why their families live a neglected life and they have to take financial help from other people. The key to finding economic balance is to earn what you need in order to live a prosperous life without being the victim of extreme misery. Pray to the Creator to show you the way.
2. Expenses
āSpending less than incomeā is the key to spending. The moment you start spending more than you earn, you run the risk of a ānegative marginā or ādeficitā. Deficit is different from debt. The deficit will gradually add to your debt and you will not be able to repay it. If you continue to spend extra each month, your debt will continue to grow. You see, soon you and your whole family have become slaves to it.
There is a way to avoid debt and move within income limits. And that way is to create a monthly budget on paper. Where, there will be separate houses for income and expenditure. And in those houses the source and amount of income, and the places and amount of expenditure will be mentioned. Expenditure will include different rooms for accommodation, food, clothing, transportation, etc. In order to get out of this problem, you can take the help of an experienced person to create a budget that works consistently on your income. Creating a budget alone will not solve your financial problems. You have to adhere to that budget. If the money goes to a specific sector of expenditure, wait until next month without spending any more on that sector. Donāt borrow for the future, because the future is always uncertain.
If you are already in debt, you must consider this when creating your budget. An experienced person in this regard can help you find alternative well-planned ways. Many times you may have to take out a loan due to unavoidable reasons, especially when it comes to buying expensive items like vehicles or houses. But it is not necessary to take a loan for the purchase of furniture, machinery or electronic equipment. However, before you take out a loan of any size, spend time in prayer to the Creator and evaluate the spiritual, financial, emotional, and personal consequences of that decision. If you decide to buy cash, you will have to wait a little longer to buy it, because, of course, it has long-term benefits.
3) Savings
"Savings" or "margins" are the amount of money you have left behind at the end of each month after your living expenses, income tax, debt repayment and meeting your budget. Your savings should always be planned and regular. Determine what percentage of your income you can save each month, and then divide that amount into short-term and long-term savings. Use short-term savings for family vacations and the purchase of small items, such as electronic equipment or new equipment. However, a significant amount of money should be used for long-term savings to buy a new car or something else. You should also have a contingency fund (unsolicited savings), because, if ever your source of income is temporarily cut off, you can continue for three to six months.
While saving money is a wise and prudent act, there is a subtle difference between saving and hoarding. A good way to identify that difference is to ask yourself if you are relying on savings or relying on the Creator. As your savings account grows, so does your trust in God!
4) Investment
Your time and effort are very important to get the maximum return on your investment. Because you must remember that you have worked hard to get a return!
Investment is just like any other financial decision. You should first pray and try to understand through mindfulness with the Creator how much money He is encouraging you to invest in. Anyone with experience in this field will tell you that your portfolio (investment list) should have low, medium and high risk investments. How much money you allocate in each case depends on your risk tolerance and your financial goals. Areas of investment include government bonds, GICs, real estate, mutual funds and private stocks, trade and commerce. We encourage you to seek the advice of an experienced person before making any major decisions in this regard. Or you may find that your hard earned money is wasting and losing money due to poor investment strategies.
5) Grants
Grants like savings should always be well-planned and regular. Choose aid organizations thoughtfully; Do research on companies and find out where your money will go. Some grants can also be set aside as contingency funds, which are called "incentive donations." However, regular donations make it easier to budget monthly. By doing so, you increase your margins or lower income.You can use the extra money for additional grants by reducing the cost of living, or reducing debt.
You can start giving grants through one-tenth of your income, although it is by no means mandatory. This grant will continue even if there is no limited or fixed amount. Ask the Creator where He is encouraging you to give this gift, and reconsider and increase that financial grant each year.
Remember, all money is the gift of the Creator to man, we are only the custodians of them; Learn to give generously, never selfishly thinking only of yourself and holding on tightly to the money.
