Have a budget plan ; to manage your money effectively, you need to know how much that comes in every day/month and where it goes. However, the plan of the diligent ones surely make for advantage , but every one that’s hasty surely heads for wants. However, some use a simple envelop system, where each envelope represents category of expense such as children’s school fees, feeding, rents and cloths as well. One could use this simple method or something more elaborate. But the most important thing is that you know where your money is going. Forget not, always put a necessity.
Avoid envy; most people in developing nations yearn for the things that people in industrialized nations have.On an individual level, many are tempted to have/want the things that their neighbors flaunt, this could be a trap to such people, maybe their neighbors cannot really offer them either. Why following someone in such foolishness and end up in financial challenges.
Try to keep your life simple; set your eyes on lobster and fine wine when all you could afford is dried fish and water can easily lead to financial misfortune/ruin. According to one Asian development Bank report, nearly a third of the people in Philippines and over half of those in India live below the poverty line for Asia, which is was about $1.35 (U.S.A) per day. When people have much meager income, it is the course of wisdom to focus on the basics. However even wealthier countries, the sample principle can help to keep out of financial challenges.
Be contented with what is really needed; this goes hand in hand with counsel to keep your life simple, some of the happiest people on earth have little money not that wealthy; nevertheless, they find satisfactions with what they do have and live happily. Which includes not just on material things but the love of family and friends.
Avoid unnecessary debt ; The rich are the ones that rules over those of little means, and the borrowers are the servant to man doing lending. Although there are circumstances when going into debt may seem unavoidable, those who take unnecessary debt just to buy something they want will often find themselves shackled to a very heavy financial millstone, this can be especially when credit card are used.
Save up money before buying ;Although it may seemed old fashioned, saving up money before buy or making purchase is actually one of the wisest way to keep out of financial trouble. Doing so keep many people out of debt and its associated plagues such as high interest rates, which ultimately add to the price of everything a person buys.