I have been talking about business and strategies on marketing. There is one important thing that is essential in business is money management.
Money management is like accounting, taking note of the ins and outs of money. You need to know that in business, without doing this money management you will be bound to fail. So what is this management about, I should define it in a more personnel way.
Every month we will get an income by working for someone, for example you get $2,000/month as salary. You must know how you are going to manage that monthly income, this is what I will do. 10% will be going to savings, 10% on investment, 10% on spending, 10% on education, 10% on giving, 50% on necessities.
Savings is to make sure you pay yourself first. A lot of people, especially the younger generations uses all their money before they even sees them. This is living dangerously on credit, that is also why the huge financial banks like CitiGroup, Lehman Brothers and AIG are facing huge credit problems, because they do not have cash on hand.
Investment is to grow your money. This is what it will be growing as years goes by, this will be growing so huge that someday you only need to use 2% of your income as necessities. What you have to do is to make sure that your investment grows at least 8 ~ 20 % annually.
Education is for yourself to keep on learning and improving. This is like the investment, just that you are investing in yourself.
Spending is a must, because if you deprive yourself from loving yourself, you will not continue on the money management.
Giving is to give back to the universal what you have received.
Necessity is what we need to eat, pay rent, pay tax, etc. That is why its the largest percentage, but it will decrease gradually, if you faithfully invest 10%.
What I want to say is that if you are not able to manage your money, you can forget about managing your business money. So this is the start. Do it today!
Do comment on the the above post if you have anything to add. As I am sharing on internet marketing strategy with all the people in the world. Cheers and be successful online.