It is said that money is a good servant but a bad Master do you let money
control you or have you found a way to master money and make it work for you
mastering money is not as difficult as most people think you just need to
understand certain principles that guide money and be willing to apply them this
is the secret that most rich people know that poor people don't if you've been
doing the same thing over and over again without getting results then you should
understand that it is now time to change your strategy and in this video I will
share with you the five Concepts you need to learn to master money and if
you're new to the channel then hit the Subscribe button below for more
life-changing content number one tracking where you spend your money you
can Master money if you don't know where your money is going people complain
every day that they don't have enough money but they don't ask themselves
where they are spending the money they do have the first concept you need to
learn to master money is to track where you spend your money I know it sounds
like hard work for you to be tracking everywhere you spend money in a day but
that is the essence of tracking it you must be willing to work hard in order to
master your money and this includes tracking every detail of how you spend
your money the concept is to figure out how much money you spend and the things
that you spend the most money on you have to keep records of every dollar you
spend from the money you spend on groceries to gas internet coffee getting
your hair done and of course your mortgage the reason why you need to add
these smaller Amounts is that this money that seems a little actually amounts to
a lot over time for instance the three dollars you spend on a cup of coffee per
day amounts to a thousand dollars a year compare this to the amount when you buy
and make your own coffee at home and you'll see just how much extra you're
paying for this convenience tracking where you spend your money will help you
identify what takes most of your money and like the thousand dollars spent on
coffee a year you will soon realize that it is not worth spending too much money
on these smaller expenses by tracking you can cut down your spending and
increase your savings with a little effort but what does it take to start
tracking where you spend your money the simple truth is that it only takes your
willingness you can start by getting a book where you write everything that you
buy and if you don't like to do things old school there are record keeping UPS
on your computer a smartphone that can give you the same result Microsoft Excel
is a good option for those who want to leverage technology for tracking their
expenses or you can use apps like mint number two The Power of an emergency
fund how many times have you expected that your car will break down in the
middle of the road or how many times have you expected that you will fall
sick and be admitted to the hospital how many times have you expected that your
house will catch on fire or that you will lose your job these are all
emergencies and no one expects them but that doesn't mean they can't happen the
difference between the rich and the poor is that the rich know that there will be
an emergency and they start making plans for it the poor also know that there can
be an emergency but they instead just hope that it will never happen life
itself is a risk you can't tell what will happen in the next moment so you
have to always be prepared ahead of time no one can predict when a natural
disaster will happen we've seen cases where natural disasters Like An
Earthquake made many become homeless within a day another example of
unforeseen circumstances is the case of a pandemic which we've recently
experienced to master money you must learn the concept and value of having an
emergency fund the first step to set up an emergency fund is to find out how
much your living expenses are ideally you should make plans to save three to
six months of your monthly expenses as an emergency fund always save a certain
amount of your earnings each month in case of an emergency number three how
that impedes wealth and how to pay it off so many people still battle with
that today the common source of debt is from loans such as student loans car
Loans mortgage loans and medical bills this debt is the reason most people have
never mastered money it is impossible to record financial success when you have
debts you have to pay off your debt if you want to master money another way
most people enter into debt is through the use of credit cards it allows you to
buy things that you want with out money but it is not free you'll have to pay it
back later and you are not just going to pay the exact amount because it comes
with interest debt is known to affect productivity and concentration most
people who are in debt have to constantly battle with emotions of fear
anxiety and panic this in itself will affect your ability to make more money
you have to do all you can to get out of debt because it is possible to live debt
free I'm going to be showing you how you can pay it off and master money you have
to understand that it is very easy to borrow money but it is often difficult
to pay back so the first thing to do to stay debt free is to avoid in the first
place I know this sounds difficult because sometimes we need some things
but don't have the money to buy them so borrowing money to buy these things
sounds like a very good option at the time but it isn't in the long term the
truth is that we can live without so many things that we spend money on one
way to avoid borrowing money to buy things that we can do without is to
delay buying most times we buy impulsively so give giving yourself time
before you make the decision of buying will allow you to see if it is necessary
or not if you are already deep in debt the fastest way to pay off your debt is
to develop a repayment plan most people who are in debt don't have a goal to
repay their debt and that is the reason why they are still in debt estimate how
much debt you have in total and create a goal to pay everything off that sounds
very easy but it is effective if you want to reduce debt then you must cut
your spending and also work with a budget don't just spend your money the
way it comes have a budget that will allow you to focus on the important
needs first and always cut spending on anything you can do without another way
to avoid debt is to live below your means don't live your life to impress
others that way you will be happy with yourself and also free from debt number
four how to invest simply and consistently one concept that all money
Masters have learned is how to invest all the world's richest people today are
great investors investment has become a habit to them and they cannot do without
it if you want to master money you have to learn how to invest as well one
misconception that people have about investing is that you need to have a lot
of money before you'll be able to invest however this isn't true in fact most of
the wealthiest people today didn't have much when they started investing they
started from a little and I'm going to teach you how you too can start
investing simply and consistently the first thing to do is to start investing
from the little debt you have you have to understand that the money you invest
is not lost because it is still your own the little money you invest will start
to yield interest and multiply this is a result of what is called compound
interest this means that if you invest a thousand dollars at a rate of six
percent per annum it will become five thousand seven hundred and forty three
dollars in 30 years investing is not a get rich quick scheme so you must learn
to be patient if you want to invest always think of the long-term benefits
and not the short-term gain make sure that you do your own research before you
invest in anything do not invest in anything that you do not understand and
only invest what you can afford to lose to avoid running into debts investing
what you can afford is the key to consistent investing when you invest
what you can afford you can easily leave it for a long time to yield more
interest you have to note that Investments can fail so it is best to
diversify your Investments and not invest in one single asset before we
continue on with the video I just want to share a quick reminder that right now
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signing up for MooMoo using the link I've left down below in this video's
description it's basically free money so sign up while you can boss number five
how to resist overspending how many times have you gone out to buy something
and you realize that you've brought home more things than you had planned chances
are you've done this before as we tend to spend more money than we should have
spent in the first place this this is called overspending and it is a result
of impulse buying to resist overspending and master money you have to plan ahead
and have discipline to avoid overspending always delay before you buy
things you don't need ask yourself if you can do without that thing for a
whole day if you can do without it for a day ask yourself if you can do without
it for a week when you ask yourself questions like this you will realize
that most things that you spend money on are not necessary have a budget for how
you spend your money make a list of everything that you want to buy and
separate them into needs and wants the easiest way to differentiate needs and
wants is that you can't do without needs but you can always do without your wants
always buy things with a list don't ever go buy anything with having a list from
home this will help you reduce impulsive buying as you will have to focus on the
things that you need to buy first also you should only take the amount that
will be enough to buy the things on your list when you hold extra money in hand
you'll be tempted to spend it on extra things that are not necessary so don't
keep too much cash at hand hey it looks like YouTube thinks this next video is
the one that will change your financial life forever give it a watch and let's
see if they're right