How to Develop and Nurture a BFF Relationship With Money

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Posted on: 20th Jul 2014

You have a personal responsibility to become a high earner, and to skillfully manage your personal and business finances. You must prepare for a lucrative career, and guarantee yourself a competitive salary. Your financial education must be complete, and you must be ready to apply it. You must treat money with respect, and view it as something far more powerful than just a spending tool. However, there is yet one more area of responsibility that you must fulfill in your money management quest. You must be cheap with your money. You need to be a cheapo with your money if you want a healthy financial life. Take the time now to read these ideas on how to be cheap with money, and hence have money as a BFF (Best Friend Forever).

Budget Like a CEO
Budgeting involves developing a plan that spells out in detail how much money you will pay out or spend for a specific period of time. To illustrate this point, you can look at your household food budget. You would develop a shopping list, cut out your coupons, and then tally up how much money you intend to spend when you go grocery shopping. This is not much different from how a CEO of a major corporation determines his office budget. To be a successful cheapo you must try to think like a CEO when you budget. Make a weekly budgeting plan. Look for deep discounts wherever they appear. Determine how much you will spend. Also, make needed cuts when needed.

Spend Lightly
Be careful with your expenditure. Avoid reckless spending, and stay away from credit cards and payday loans. In fact, it might be best to steer clear of loans altogether unless they are for home and car buying purchases. Try to shop only for the things that you need, and avoid buying luxury items. Buy cheap as often as possible. Instead of shopping for brand name goods, go for store brand products. Always keep an eye out for discounts and good deals.

Look for Great Bargains
It�s best to always be on the lookout for super items at bargain basement prices. A good source for finding great bargains is in your local Sunday newspaper. It usually contains loads of magazines and brochures that list current buys at deep discount prices for a specified amount of calendar days. The newspaper also has many coupons on food and household products. Become a hungry wolf when it comes to looking for bargains of any kind, and again make sure to watch your spending.

Avoid Accumulating Debts
The only thing that might be worse than death and taxes is mounds of debt. There is no one, at any time in history that enjoyed, benefited from, or rested easily from amassing a lot of debts. Debts are like parasites that, if they are not controlled and eliminated immediately, will eat away at your soul and peace of mind. Therefore, you will need to avoid accumulating debt just as you would avoid eating a piece of rotten fruit. If you need to finance such items as a vehicle, find one that is cheap and you can pay off in at least three years. Otherwise, leave credit cards and other forms of debt alone.

Don�t Forget About Your Credit Report
You will need to keep track of your financial and credit eligibility standing. Your credit report will contain your past and current payment history, and serves as a financial report to lenders when determining your level of credit risk. Firstly, you must be extremely diligent about establishing credit and maintaining an excellent credit rating. The better your credit, the better you will have positioned yourself for the best loan products with the best interest rates. Secondly, check your credit report annually. You are permitted to receive a copy of your reports from all three credit reporting agencies each year for free. Once you received your reports, review them thoroughly, and dispute any inaccuracies that you find on any of them immediately.

Conclusion
Take the moment to go and practice these ideas on how to be cheapo with your money. Money is intended to be your BFF, so make a point of treating it as such. If you have ideas of your own that you wish to add to this post, please feel free to leave a comment.

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How to Develop and Nurture a BFF Relationship With Money

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