How to Manage Your Wealth Wisely?

By: Ejaz Alam | Topic: Personal Finance

You must have heard the word ‘frugality’ on numerous occasions. Have you ever thought what does it really means? Your answer will surely be that it means to spend wisely. Now this ‘spending wisely’ phrase has been repeated so many times that I am sure it has little attraction for most of you.

You surely need something for your living, may be less or more. However getting trapped into financial disaster is not only limited to less earners but even a person who earns a handsome amount may encounter such situations.

You must have often felt that you earned a lot of money this month but after paying your bills and fulfilling other needs you are still falling short. You are left with nothing extra to fulfill your pending desires and you get into financial stress. You hold your head and start thinking that you have spending wisely then why it is getting difficult to make both ends meet.

Yes we agree that you have been spending wisely throughout the month but there must be something that must be missing. May be a good amount of your money have been leaking from your kitty without letting you to notice it. It may be a very small amount which you let go unintentionally. You don't even consider that amount as big. No..... okay, have you ever considered switching of extra bulbs in the rooms which are not in use ? Have you ever thought of taking your own lunch to your office?

There are hundreds of such small things towards which most of us do not pay much attention. We consider them to be small things. we think that saving petty 10 bucks will not make us rich. If this is the case with you , you may need to change your thinking. Remember this small amount which you let go waste can add up into thousands after some times.

If you closely pay attention to such small leakages in your kitty, you surely will be in a position to avoid financial crisis. Imagine some extra 300, 600 extra bucks in your pocket without having to work for them.

"Hmmm, I like this, I want this" and a small magic card appears out of your pocket and there you go. Have you ever asked yourself "whether I really need this..." well most of us just tempt ourselves, dictate ourselves, find some supporting excuses for us and then just go for the thing we desire ( want).

Of course I never mean to say that you don't get what you desire. However it will of more pleasure to you if you get it from your saved amount instead of disturbing your monthly budget. Here you have to observe strict financial discipline?

Nevertheless, it is a fact that you cannot go without it. You need to practice frugality in order to build wealth. Whether you earn 1000 bucks or 100’000 bucks, until and unless you practice frugality you cannot build wealth.

We all have to admit the fact that financial stress is now among the top five reasons for divorce and some out of you must have experienced the agony of financial crisis. Let’s face it financial stress is really very tough. Therefore, you have to think seriously about its causes.

There can be following reasons for financial crisis:

1. You do not know where your money is going.
2. You do not observe financial discipline.
3. You cannot differentiate wisely between your wants and needs.

Out of these three, the top one is differentiating wisely between your wants and needs. I talked with number of people, rich and poor both and came to a conclusion, which can be narrated in the words of Oscar Wild,

” When I was young I thought that money was the most important thing in life, now that I am old I know that it is”.

So when the financial aspect is considered as one the most important aspect of our life, we should be able to handle it according to the importance it deserves.

Wealth creation is not at all an impossible or difficult for most of you. To me creating wealth is a simple process that is totally based on common sense. You should learn to create wealth and manage it properly.

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