Money Management – Part 2

To understand about money management first we have to understand the money uses and it’s management. Before we start the money management understanding, primary focus on your money which is in your pocket is more important. We can say that you are the owner of that money. Now you want small steps so that money is spent in proper discipline. By doing thisyou can get maximum benefit from it.

The process to take small steps and get more benefit from your own money is called Money Management.

Remember these five basic points to understand money management:

1. Best way to use money
2. Spending Structure
3. Monthly saving
4. Return from Investment
5. Design goal completion with current financial situation.

Proper success in life only depends upon the Money management habits. If you have money but can’t handle in a discipline manner then definately you loose it. People around you judge with the money you own, if you have more money then you get more attention by people.

Today we discuss here 6 Box / Jar money management method which is popular these days.

Box 1(Jar)    contains 55% of your money for basic needs

Box 2(Jar)    contains 10% of your money for big Demanding purchase

Box 3(Jar)    contains 10% of your money for entertainment

Box 4(Jar)    contains 10% of your money for education

Box 5(Jar)    contains 10% of your money for Investment

Box 6(Jar)    contains 5% of your money for charity

Basic needs of a home : all the needs of house which is mandatory for living like Electricity, rent, etc. If you live in a rented house then Furniture, food, clothes, etc are always consider mandatory for you. People these days have mental disturbance. If we are not mentally ok then there is no money management. If Elon Musk try to make money management machine being not mentally ok then Musk goes with “Zero”.

Everybody always have some kind of desire of some costlier products which make them happy from inside, such as a watch of 15k provides a happiness because you want it from long time. Always try 10% spending on that thing which provides happiness to you in life.

Life run with things that is Entertainment, Entertainment & Entertainment. Watch your favourite movie or buy such entertainment things with 10% money for self-happiness with family.