ALL businesses, family affairs and assets should be managed. It also creates debt. You really have all the work you need, even if it's that easy during the day. So it's worth stopping and asking, "How far should I run my business?"
When it comes to financial management or wealth management, one can almost automatically think of the rich. The average employee earning a weekly or daily salary cannot easily think of themselves as a CFO. This could be our first planning mistake. Above all, he is the person with limited resources that a careful manager must be. After all, only the rich can afford mismanagement, and it can get very expensive!
Property management
If you are a homeowner, your home is probably your greatest asset. With inflation issues affecting all developed countries and the cost of replacing a home spiraling, the value of your home typically increases at a rate that is in line or even higher than the rate of inflation. Housing construction therefore deserves a management priority.
There are always things to do in a house: repair, replace, tighten, adjust, improve, paint, polish, mow the lawn, mop, mop, and other indefinite activities. Therefore, the first step in good property management is to make a list of tasks and prioritize them. How can you get someone to do all the necessary things? And how do you pay for this? Surprisingly, if you're willing to read a little and take the time to get things done, there may not be much you can do on your own. While you can't do it all as quickly or like a pro, you can save a lot of money and enjoy the sense of accomplishment as an added reward.
If time is an issue, make a list of available hours and place it next to the task list. So decide what to do and get to work ASAP. It is not advisable to postpone necessary repairs as each billing day can be more expensive.
Most areas have construction workshops or redevelopment centers. There are many great kits, simple tools, and DIY ideas out there, usually at a reasonable cost. Many libraries also have a good selection of materials on repairs, woodwork, concrete work, landscaping, and a variety of topics associated with homeownership. Even if you have to buy or rent tools, doing a job alone can be cheaper than professionally.
It would be great if the family could participate in the renovation of the house. The rewards are not limited to financial rewards. Family involvement also contributes to family unity.
Keeping the house clean is really an important part of the housekeeping program and everyone can work on it together. For example, it may be advisable to adopt the oriental custom of removing shoes and slippers when entering the house. Of course, we don't want someone from the barn in our living room to dry their shoes on our favorite rug. However, compared to many streets in the city, the stables can be the cleanest place. Most of the city streets contain a lot of soot, debris, rubble, grime and pollution. Why put this kind of dirt in the house when it can be avoided by just taking off your shoes?
Property management should not ignore home security. An insurance decision may need to be made. If you are insured now, how long have you been checking your fire insurance, all your mortgage and liability insurance? Due to inflation, good hedging a few years ago may not be enough. When was the last time you thought about the cost of replacing the contents of your home?
Credit insurance is actually life insurance. In addition to protecting the home, creating "instant ownership" in the event of death is a relatively inexpensive option. For a young couple, this is usually the cheapest way to provide financial protection.
If you work for a family goal like at home, you have to pay the price. This usually means living under economic constraints for a long time until the goal is reached.
Money management
Money is another asset that requires management. Sometimes you hear people say, "I do not know where the money went." This generally indicates that there was no budget or that there was an inaccessible, incomplete or incompatible budget.
If you have a solid family budget, there is a hard and fast rule of thumb that will keep you out of trouble. Discipline yourself to live within your resources. When expenses exceed incomes, both national and personal, the problem quickly gets out of control and chaos ensues. Care must be taken when using a credit card so that the person avoids buying only what they want and not what they really need. It can take a smart adjustment of your lifestyle to be a good CFO.
"Saving for a rainy day" was a basic family rule. And it still makes sense today. For most people, there is no other way to increase your wealth. And a smart investment in savings can counteract inflation. For example, if a 22-year-old could save a dollar every day and invest it at 10%, he would have more than $ 200,000 at age 65.
With good money management, all latent liquidity, large or small, must continue to function optimally. Regardless of whether accounts for individuals or group, low-interest or low-interest accounts should contain sufficient funds only for immediate needs. Money that is not needed immediately can be put into deposits that earn the highest interest rate. You do not have to settle for a savings account with minimal income. If you want to negotiate, many banks will also pay slightly more than the advertised interest rates.
Some people preferred to invest funds in areas that are generally not affected by inflation, such as real estate or income-generating land. Of course, caution and expertise are necessary to make such investments. But they often generate greater returns than a savings account. In most places, interest on money is subject to income tax, while capital investments cannot be taxed or can be taxed at a lower tax rate.
When calculating returns, it is a serious mistake to ignore the tax. If the investment is extensive, expert advice may be needed.
Managing your property is becoming increasingly complex. No set of guidelines covers all problems. But it is wise to learn the basics and apply them. It is not easy to follow the principles of good governance. But it's worth it, because good governance can affect your future and those around you.