Using Money Principles to attain Success

As part of your efforts towards becoming successful, it is very important to adhere to the following principles:

Plan your financial future

Take time to plan for your financial future. As you list all your financial goals, try to device the means of achieving them.

Mind your expenditures

Be careful the way you make expenditures. Always know what your income is before spending, so that you do not waste all

Manage your income wisely

When you receive your income, always remember to set aside part of it, possibly in an account you designated for long-range goal. This should be done, before you start spending.

Don’t be deceived

Be careful about some advertisements, sales people or other sources of financial offers, promising anything free. Remember not to expect something for nothing, so that you do not lose the one you have.

Invest in many areas

          Don’t forget; always diversify, because diversification of assets is the best protection against risk.

Honor your repayment agreements

When you borrow, try to repay when due, to enable you to borrow again in future. This is very important, because credit bureaus maintain credit reports, of which any negative information about you could affect your ability to borrow, and that might affect your business, especially when funds are needed.

Saving for the future

As early as possible start saving. This will enable you to have more funds in future.

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Forecast for your money status

You can determine the future status of your money by using the interest rate to calculate. For instance, if you want to know how long it will take your money to double, you can calculate it this way: Assuming your account is earning 12% interest, it will take 6 years for the money to double, that is; 72 divided by 12 = 6 years.

Stay insured

You can also protect yourself from any financial loss, by staying insured. Such losses can come in form of illness or even accident.

Have a yearly budget

Annually try to have a budget. This method will enable you to identify expected income and expenses, as well as your savings. It will also guide you, to live within your income.