Whether we are rich, poor or somewhere in-between we all have to monitor our personal finances, and live within our means. Successful business people with a large portfolio of wealth and assets will nonetheless do whatever they can to ensure growth, whilst those at the other end of the scale who need to count their every cent just to pay the bills and meet the demands of everyday living will know instinctively how to avoid wasting their money unnecessarily. The trick is to monitor your finances at both ends – to maximize income whilst keeping wastage and needless expenditure to a minimum.

Appreciating and Depreciating Assets

One thing to be immediately aware of when counting the nickels is appreciation and depreciation. Property generally appreciates in value, whilst an automobile loses it from the moment you drive it home from the showroom. That doesn’t mean you shouldn’t invest in a set of wheels if you need them to get from one place to another but be aware that a used vehicle, even if it is more expensive to maintain, may cost you less than a new model which loses serious value from the off. Work out what is best for you.

Be Mindful of Interest Charges

It’s nice to have a credit card, but if it isn’t paid off in full at the end of each month the purchases you make with it could prove staggeringly expensive. It is rarely a good idea to pay more tomorrow for something you want today. If you can, find another way to pay or go without.

Avoid Unnecessary Costs

How frustrating is it to receive a penalty charge for parking in the wrong place or driving too fast? How many hours did you have to work to raise that amount of money? Avoid unnecessary charges wherever you go, whether it be for traffic violations or bank fees.

The bottom line is that to move up that ladder you need to earn consistently more than you spend. Learn to value what you have and don’t part with it gladly.