Ever wondered how some people are just so much better with money? It is easy to identify a good money manager and usually, they will show a lot less concern about money and they might even achieve financial freedom at a much earlier age compared to their peers. That said, it is still a mystery how these people got to where they are in terms of money management. I am very tempted to use the lazy method of explaining successful money managers, and that is, to be uninterested in using money and focus solely on managing it well. While that is 100% true, it’s definitely not easy to emulate. As such, I will use this post to expand on how we can manage it well so that we can all be great money managers.

Be disciplined when it comes to money

So being disciplined seems to be an easy thing to do when it comes to money. Many of us will immediately jump to the conclusion of spending wisely, saving an optimal amount of our income, and parking our cash into assets that are worth their opportunity costs. But the important part of all that is to only use money when it is absolutely necessary. This does not mean you cannot splurge from time to time but actually plan and set aside a budget to splurge. Being disciplined just means you are in control of your spending but at the same time, you are always spending within your means. So the next time when you spotted a product that you want to purchase, ask yourself if you have budgeted for such a purchase before tapping your credit card.

Focus on consistency

Telling someone to be consistent is pointless if that person is consistently wasteful. Since we have expounded on the concept of discipline, I hope that this topic will not be taken out of point. Being consistent requires that the person is fully committed to the plan set forth in terms of money management. Say for example, if you are trying to save $1000 per month out of your take-home salary, you need to ensure that no matter what happens, apart from medical or familial emergencies, you are able to see the increase in your bank balance at the end of the month. Over time, such practices will build up a habit that can lead to wonderful outcomes in money management as successful investors, traders and money managers are all obsessed with consistency more than anything else.

Constantly improving to increase efficiency

Don’t settle for a single target or method to achieve what you want in terms of your monetary goals. Instead, try to review and optimize your strategies every chance you got. For example, if you get an increment or a bonus, do not save the same amount that month, adjust it accordingly so that you can reach your goals sooner. Besides that, always question why you want to keep doing something (consistently), refine those methods over time, switch bank accounts if necessary, and stop settling for one mode of growth. Learning more about money management inevitably brings you closer to investing, at that point, stray away from fast and sudden growth. Stick with what’s sustainable for your own lifestyle and goals and you will do fine.

Closing Thoughts

Many people want to do well in life and have a lot of money in their bank accounts but many always find themselves riddled in debt or a small bank balance. Though sometimes it might be due to less-than-ideal life circumstances we should always make the best out of it so that we can slowly climb higher in terms of socio-economic status or simply live a life with fewer monetary issues. Regardless of your current state, Loopholes Singapore will be here with you and for you to keep you in the loop for all the best deals. Write to us and we will reply as best.