Sign up to skyrocket your income. Get a whopping boost to the 6 and 7 figures - with or without a college degree.

The same tested and recession proof tips I used to have $40,889 months

3 years ago

2 Money Management Tips You Can’t Afford To Ignore

money management tipsTwo Money Management Tips That Will Cost A Fortune If Ignored


 If you’ve ever looked for advice on how to manage your money, you have probably found tons of money management tips, courses and advice.

Yet, how much of this advice is truly authoritative and can be trusted?

Especially when it comes to such a sensitive subject such as managing your money.

I remember myself some weeks ago, trying to figure out the best way to manage my money.

After hours of searching in Google, I didn’t find much valuable information…

I read many money management tips I knew I couldn’t trust along with other stuff about managing your money that I couldn’t understand.

In the end, I realized that the answer I was looking for was not complicated.

Actually, managing your money the right way is very simple. 

If you do only these two things I am going to tell you, you will have probably eliminated about 90% of your hassle, save yourself a fortune and all that without paying for a scammy money management course.

So, what’s the simplest way to learn how to manage your money the right way?

That’s to look at what most people do – and do the opposite!

It might sound strange, but think about it for a minute.

Do most people really know how to manage their money? Are most people you know financially free?

No.

The masses actually know a little about financial management. And that’s only what financial gurus told them. Which isn’t always reliable.

Do I know more?

Well, I am not a financial guru. I am not an expert in finance. I am a young entrepreneur who is still learning.

But I am no dumb by any means.

I believe I can call myself a winner.

And from all the things I have accomplished, I have found that the most was the consequence of doing the opposite of what the masses were doing.

So, what’s the best way to manage your money?

See how the masses manage their money and don’t follow their example!

But, let’s see what exactly they do, what you have to avoid and what you should do:

#1 Of Money Management Tips To Follow: The Most Serious Money Mistake People Do & How To Avoid It

money management tips

Do you know what most people do when they radically increase their income?

They radically increase their expenses.

And that’s one of the worst mistakes you can make when you start making more money.

If you aren’t careful – it can literally destroy you.

How many times have you heard about a lottery winner who lost everything and got bankrupt after just one year of winning a million dollars?

Let me tell you what happened:

Before winning the million, he was living off 1500$ per month from his measly paycheck. He could afford  renting a small house.

He could easily pay for his expenses because he was living in simplicity.

He didn’t have any considerable expenses rather than his 400$ rent, some utility bills and the grocery bills.

Then he hit a gold mine.

He suddenly won 1 million in the lottery!

He could be financially set for a life if he continued living like before (or a little better maybe?)

Instead, he started an endless spending spree.

He started buying designer clothes and fancy cars. He bought his own 3 bedroom and 2 bathroom apartment and decorated it with the finest furniture a man has ever seen.

He continued that spending spree for months.

He was buying everything you can imagine.

Less than a year after the big payday, he didn’t have anything left. The bank took his big home, his fancy cars and sold the furniture and designer clothes to pay for his debt.

Would you act different from him?

Probably…

But most people would act exactly like him.

And they don’t have to win the lottery to do it.

The moment they start making a little more money, they start spending endlessly without even thinking about it.

They buy fancy cars, big houses and designer clothes.

Well, all that stuff is great!

But if you overestimate your money-making ability you will be doomed for a life.

Money is not evil, but it’s not an angel either.

Money is as good as you let it be.

A few months ago, I started making a bunch of money on fiverr. More money than I could ever imagine.

Suddenly, some other business ventures I had also started making money.

From broke and living off the 200$ my parents gave me each month, I ended up giving money to my parents.

It’s really ironic how fast our lives can change. You can be at the bottom and suddenly rise up at the top and vice versa.

This is not to say that I am at the top because I am still far away from there – but what I mean is that everything changes incredibly fast.

Nothing is stable forever. You’ve got to keep progressing and be adaptable – or you are screwed.

Anyway, let’s get back to the subject.

The fatal mistake that you should avoid when you start making money.

Last month I moved into my new house – no I haven’t rented a 3 bedroom house – but a comfortable apartment that was better than the shithole I was previously living in.

Anyway, when I unpacked my stuff in my new home, I found a piece of paper I have written months ago.

I had some goals written on it.

What I would like to accomplish during the next year.

One goal was:

“ I want to make 300$ per month so I can substitute the money my parents give me and cover some of my expenses on my own”.

Yes, making 300$ on my own sounded like something really significant back then.

Now, it’s only a matter of 2 days to earn it. I could easily fall into the “spending spree trap”.

I could radically increase my expenses and buy stuff I would probably not even need. I could rent a big 1000$ apartment instead of a 300$ studio.

I could start shopping clothes from Ralph Lauren and Diesel or buy fancy furnitures for my home.

Money can easily charm you and make you act foolish.

While I did increase my expenses a lot, I didn’t let money took over my mind and make me believe I can get into a “spending spree” without worrying about the dangers waiting in the corner.

I live off 1000-2000$ per month and have everything I need.

Because I appreciate that I didn’t have that stuff before. I appreciate that other people never had or will never have it.

Why do I act like that when I could easily spend more?

Because of what I told you above.

Everything changes fast and you can never predict when a radical change will occur.

Shit happens, and if you are not ready for shit to happen in your life – if you don’t prepare for a rough time, then you will lose the game…

I don’t say that you should be over-protective, pessimistic or spend your entire day worrying about the struggles you might face in the future.

But you shouldn’t be completely careless either.

There is a balance between these two behaviors.  That’s where you should be and how you should act.

#2 Of Money Management Tips To Follow: One of The Best Advice On Managing Your Money I Have Ever Heard

money management tips

Since nobody in my family is rich, I had to turn to rich people for money guidance.

Actually, I started reading more books on making money and entrepreneurship. The easiest way to grab instant wisdom from people who have already made it is to read their books.

Even if you never meet them personally, their wisdom can be life-changing.

One of the last books I read, is the How To Get Rich by Felix Dennis – which I highly recommend you to read even if you have no intention to get rich.

That book is a true gold mine of wisdom!

Anyway, one thing that I will never forget about reading this book is this phrase:

Think Big, But Act Small.

I will never, ever forget it. And if you do that as well – you will never run into trouble when managing your money.

I would like to quote a passage from Felix’s words because he can definitely explain it better than me:

Just because you have a success or two under your belt, it doesn’t mean you have it made. Success is never permanent; failure is never fatal.

The only thing that really counts is to never, never, never give up.  That’s that old windbag Winston Churchill again. But he was bang on the money there.

Once you begin to believe that you are infallible, that success will automatically lead to more success, and that you have ‘got it made’, reality will be sure to give you a rude wake-up call.

Believing your own bullshit is always a perilous activity, but never more fatal than for the owner of a start-up venture.

By acting small, I mean remaining in touch. Remaining flexible. Constantly examining how your company could do better. Keeping a sense of proportion and humility. Not throwing your weight around playing the great ‘I Am’.

Felix says that in his early days of success – (for those of you who don’t know, he is a multi-millionaire) – he spent the money he earned mindlessly.

He made the mistake I describe above as “endless spending spree”.

He spent millions to live in luxury because he thought he was the king of the world.

It doesn’t matter how much you make –no matter if you make 4000$, 400.000$ or 4.000.000$  it’s still the same feeling of power the money gives.

Having money in your pocket will charm you to “act big” instead of acting small.

Think big and act small.

And you will be fine as long as you follow this advice.

The masses do the opposite. They think small and act big.

Don’t do what the masses do. Except you believe that I or Felix know less than the them about managing our money.

I took his advice and applied it to my life. And I didn’t have a single money problem after doing so.

Conclusion

Letting money charm you is easy. Managing your money the right way is not so easy.

But if you follow these two tips I have outlined above you will save yourself from lots of financial trouble.

So, to recap:

1.The most serious mistake you can make after making a lot of money is to start a “spending spree”. You have to understand that everything changes fast.

You have to be constantly evolving and adapting to the changes if you want your life to flourish.

2.The masses think small and act big. You must do the opposite. You have to Think Big And Act Small.

 

PS: Do you know any other super useful money management tips?

Let me know in the comments and then SHARE this post with your friends on social media to help them manage their money better!

Click Here to Leave a Comment Below

Leave a Reply:

Yay- Let's be friends!

If you enjoy reading Dare and Conquer, join our community on social media:

Interested to learn how a 19 year old with no college degree built a business that now generates a whopping

$40,889 per month on Fiverr?

Send this to a friend