I have a friend who is very rich on the outside, and the main reason why I said on the outside is that he's doing a decent job that pays very well, and he's living a rich man's life but each time this is my rich friend called just to borrow money from me makes me feel somehow, I feel that my friend shouldn't be borrowing money because he has enough.
Yesterday, my friend called me and asked me to lend him some money. As usual, I inquired about his expenses and he started talking about his financial struggles. It became obvious that while my friend earns money, he lacks a solid plan for managing it.
This reminds me of what I've been struggling with in the past, which is focusing on how to make money alone without having a proper plan on how to manage it. We have a lot of people who have the same problem too.
Money has a unique characteristic, the more you have, the more you can buy, and the more opportunities you have but to have control over your expenses, you need to have a plan in place for managing your money. Unfortunately, many people focus solely on making money without considering how to manage it effectively. To manage your money, you must prioritize your spending and create a plan for managing it.
Managing a plan can be challenging as it often requires prioritizing needs over wants. It's important to take the first step of letting go of the things that you want and focusing on what is necessary. If you struggle with this, it may be difficult to create and follow through with plans. Remember that making plans is only the beginning of managing your money.
Before creating a plan, it's important to prioritize tasks based on their importance. Often, we tend to spend time and resources on less significant things. For example, I tend to use my phone for all my hive activities, even though it's less powerful and easier than a PC but I am not comfortable using a PC. It would be unwise for me to invest in pc because I'm more efficient using my phone. Instead, I should focus on improving my productivity by using my phone more often. Most people will just buy things without considering how valuable it is to them.
Making plans on how to manage our money will save us from acquiring liabilities and getting our priorities right. Overspending is often a result of acquiring too many liabilities that exceed our income and proper management can prevent that.
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Thanks for your time.
Posted Using LeoFinance Alpha
