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learn how to do effective money management

28 January 2009 4 Comments

ffective money management dollar

if you want to live comfortable in your life and increase your wealth ( become more wealthy man ) you should learn effective money management . first you should have your own Goal in money management, and be sure about the end of this step ( or you don’t start it ) .when you start you should start with start small with objectives , like saving small amount of money to pay some bills .

before you dream you should know what is your dream and what it is about ” discover your dream ” . Analyzing your your money , abilities and thinks inside you , you will discover how much you are rich !

this money which i talked about also contain ” cash in pocket or purse, piggy bank cash, bank balances.. etc.

be sure that you collect all your money , you can think about your lost money so you should search in coat and trouser pockets,greeting cards,around furniture ( under & behind ) all places that could found money there ” i call it hunting the lost treasure” .

as a role we know that our money is assets and assets is a kind of our money ! so don’t wonder if people like to have assets as property .

we have our possessions , which is the part of our wealth that can turn into cash this is a types we need to protect from creditors .

i tell you a good example about managing your money , if you have a car or a building you don’t have to sell it to pay your bills , tax but converting property to cash is a good thing to to remember in identifying and effectively managing your money.

in our life we have a good strategy don’t know if you noticed it or no but after you read it you will discover that you was know but not interested , Long term assets as real estate, investments, and personal property don’t have fixed price so when they become older them prices go down but we can turn them into cash and they don’t increase spending power !!

in your business you should Track your income, if you have some checks not got them value yet you should get them to calculate your income average .

if you manage a company you could stop get checks in cash to the quarter year , so your income for the quarter year period will be good . don’t pick them weekly ( but if you need cash fast get them when you received ) but this for small companies .

you Tracked your income ? now you should Track your expenses or spend , Once you know what money you have now and what income you can expect to get, you will know where your money goes and to whom , do it monthly or at the end of your period this will be OK

** this article will be good for accounting guys and managements , maybe normal visitors don’t understand some points but i will be happy if you comment with your question .

Mohammed.

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4 Comments »

  • tarek samir said:

    im happy to discover this blog
    why u dont have other in arabic with same content

  • lizelement said:

    i am not an accounting person but of course i know the basic of it.. hehe.. but anyway, the inputs you’ve provided are really useful and it’s the way how “professionals” think.. money management — my motto for that is: spend less than you earn! which i think is the basic yet usually left unpracticed!

  • Mohammed (author) said:

    any basic business follow this strategy you said ” spend less than you earn ” but the accounting rule is manage this process to make earning more than what we spend

    thanks for your comment .

  • Mohammed (author) said:

    you are welcome , if i got some requests about Arabic blog i will do .

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