Money Management

Money management is one subject they don’t teach us at schools, but isn’t it one of the most important competencies in life? More and more I see people of different ages that caught themselves in the cage of debt, mortgage and credit card bills not because they’re not paid well enough, but all the result of improper budget planning and spending.

From a first glance at the subject, one might think “Well, what is there really to know about money? Just use common sense. Spend less than you earn!” As easy as it may sound, it’s rather difficult to do that when day and night we’re attacked by media and advertisers everywhere and end up spending all our salaries long before the next paycheck arrives. And then there are those who do manage to save some money, but what do they do with it? Store it under a pillow? Put it in a savings account in the bank? How safe and efficient would that be? What currency should you store your money in? So many questions that need an answer.

My parents lived in an era when they were brainwashed to think of money as the root of all evil and spent their life working and hoping that the government would take care of them when they retire. Little did they know that they soon have to adapt to the new circumstances and they couldn’t teach me much about investments and money handling as they didn’t know much themselves at the time.

In the beginning of my career when I started earning my first money, I had to pay different loans and my  salary was very small and I always struggled from not being able to buy all the things I wanted. Once I started earning ‘real money’ I felt the need to compensate for the ‘tough period’ with excessive shopping. I would implement YOLO (you only live once) money strategy and make investments in expensive clothing and accessories and lots of other non profitable assets. It was all fun and games until one day I was laid-off from my job and I had 8 more months to get out of my car loan.

Then I realized that I was living an illusion of stability and continuous income from my job . Reality is that in our unstable world you just can’t depend on only one source of income. I really wished I made proper investments and savings throughout these years, then I would be in a better place financially. What’s done  is done, but I decided to take a whole different approach and educate myself on the subject.

I researched the subject and came to find out different tactics and advice about money management and decided to put together a list of the ones that I found acceptable, easy to follow and test them to see if they really work in real life. So, stay tuned for the future posts with the tips and suggestions.

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