The art of money management we should have learnt by the time we graduate, but this is something that we understand until it is too late – I mean we are badly off. When I got my first salary cheque, I felt like I was floating in the air. The softness of notes I felt just beneath my fingers caused a spark of excitement to run in my veins. For a while, I thought as if I could live my bachelorhood to the full.

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Money brings devastation if we fail to handle it smartly, and I took years to decipher this fact. I had no idea to make money from money. I did not control my spending, and for that reason, I fell in a vicious cycle of debt. Debt continues to spiral up like a grapevine and eventually, I ended up being broke.

I have passed a decade ever since, and the following are the lessons I have learnt.

You should not ignore savings

No matter how much you earn, it would help if you did not ignore saving money for a rainy day. Unforeseen expenses can pop up any time – your car breaks down, your laptop stops working, your cellphone conks out, and the like. Having money set aside for an emergency can help you fund your needs immediately without taking on debt.
My salary was good, yet I lived from paycheque to paycheque because of my reckless attitude toward spending.
  • Make a budget
  • Open a saving account.
  • Control your impulses.
  • Manage all your expenses.
  • Pay off credit card bills on time.
Consult a financial advisor. They can suggest you better ways to ensure meeting all your expenses along with savings.

Invest money to make it grow

In retrospect, I should have emphasised investing money, but it is easy to be wise after the event. I tried my hand at investing by buying stocks, but I lost and then gave up. It was my biggest mistake. I had terrible luck buying shares, but I should not be gloomy as there were several other offers.

If you want to develop, you need to invest money. From stocks to property, there are various options to help you grow your wealth. Each type of investment is subject to risk, and you should analyse your affordability. If you are new to investing, you should start with simple options. Try to consult an expert who can guide you better.

Credit cards are not harmful if used smartly
A credit card is not a bad option to fund your needs as long as you use it when the expense is urgent, and you do not have the cash to pay. Take advantage of points offered by your credit card company. Some credit cards can provide you with at least 3 points on each pound spent on all purchases.

I had a credit card, but I never took advantage of points. I used it even to fund my impulsive buys. As a result, I continued to rack up debt. Not all credit cards offer reward system, neither do they offer competitive interest rates. You should shop around before getting one and use it only when you need it.

Borrow money for unforeseen expenses

Debt is the devil if you continue to take out loans without your affordability. It is easy to get loans for bad credit from direct lenders as they disburse money the same day you put in the loan application, but you should consider your affordability and not apply for the loan to meet your impulsive buys.

I always used a credit card whenever I ran out of money. I did not turn to a direct lender unless I had maxed out my credit card. Unfortunately, all this happened because of my laidback attitude. I kept spending money even on those things that I did not need, and I continued to do so unless I fell in a never-ending circle of debt.

The rule of thumb says that you should make a budget to have an idea of your spending liberty. You will stay benefitted as long as you do not cross it.

You can live on less expensive things

It is not set in stone that you will buy brands and costly items all the time. Whether you buy a BMW or Dacia Sandero, both of them have the same function. I never saved for anything in my life until my financial condition got worst.

You do not need to buy a condominium as you can get the same comfort in a small home. You don't need to buy a king-sized bed if you're alone. Remember that the chasing for physical possession will never satisfy your desire for happiness.

Follow these tips if you do not want to be broke.

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