Learning Resources

Embrace Money Management Skills, Not YOLO

03 Mar 2022

Money Management Skills | VI

Do you know how to manage your finances? Or how to keep all your bills on time? What are the best ways to save for a rainy day? What is the most efficient way to manage your hard-earned money?

If you don't know all the answers to these questions, it's probably because you don't have money management skills. 

Managing your money well can make you happier and more productive. It will give you the power to live a better life and be able to accomplish all that you want. Yet, most people have no idea how to manage their finances.

Why we lack money management skills

Money Money Home | VI

So if it's so important, why are there still so many people who don't know how to do this? What is it about money management that make it so evasive, that they are so many people, like you, who still don't have this important life skill?

We have a few theories.

1. The education system didn't emphasise this

For some reason, we've all been led to believe "if it's important, it would've been taught in school." So, if it wasn't taught in school, it could only mean it's not important, right? Sadly, that is not true.

Money management skills are important to everyone, and yet these skills do not seem to be emphasised in our formal education system. We tend to learn about money management during our adult life, mostly through trial and error. And if we are lucky, we find mentors who can help us succeed in managing our money.

However, even with such an approach to learning, many people still have a lot to learn. For example, they lack the ability to understand what money is. And they lack the skills to manage it well.

2. We're living in the YOLO era

As we transition into a more "woke" society, the YOLO mentality also becomes more prominent.

Save money and ONLY enjoy your life when you're retired? Give us a break!

We are in an era of instant gratification. People want their rewards immediately. That's why some people don't save or plan for their retirement. They spend their entire lives enjoying the moment, without any concern for the future.

This new way of thinking about life does not encourage people to think of their long-term well-being but instead, focus on short-term pleasures. They have no plans or reasons to invest in the future because they are supposed to only focus on the NOW.

3. We succumb to peer pressure and FOMO

Ahhh yes... YOLO's cousin, FOMO. In case you're not updated on your urban slang, FOMO stands for "fear of missing out."

Everyone wants to feel like they belong when among their peers, and because of not wanting to be excluded, you might make yourself look or behave in a certain way when you're around them.

Sadly, it is also the FOMO that is driving more people to buy more things for themselves. These people do not even realise that the 'craze' is causing them to make poor choices and spend money they do not have. Forget money management skills. Most of the people living this lifestyle barely have any savings, to begin with. 

"Well...that all sounds great, to be honest," you say. "Why manage my money when I can spend it, living my life to the fullest now?"

We'll give you 3 good reasons why.

Why money management skills are a must

If you still don’t get where we’re going with this, we’ll lay bare for you by giving 3 reasons why you should start managing your money right now.

1. You can retire

If you are living paycheck to paycheck right now, you can be sure you'll still need to do that at the age of 70, even when you barely have the energy to even earn a paycheck anymore.

It's simple math. If you did not put even a drop of water into the cup, will you have any water in the cup 10 years later? Of course not!

So to be able to even retire, you'd better start managing your money now.

2. You start early, you finish early

Money Money Home | VI

Why procrastinate doing something you can start doing now? The best way to build wealth is to invest early in life and then make sure that the money compounds over time.

So the earlier you start, the better. Managing your money properly puts you in a stable financial position, enabling you to retire when the time comes or even retire earlier than you planned if you do it right.

Start earlier than others, you might even get out of the rat race before them.

3. You never know what will happen tomorrow

We're living in uncertain times. The economic crisis has caused people to lose their jobs, homes, and savings. Not to mention accidents and mishaps can happen to any of us on any day.

That's why you can't afford to wait any longer to start managing your money. The only way to guarantee that you will have money for unforeseen circumstances like these is to start saving today, because you never know when you may need it. Only when you manage your money well will be you be protected against any emergencies.  

Living in the fast-paced social-media-facing world we're in right now, delayed gratification is certainly underrated. That is not to say that you shouldn't allow yourself some entertainment or leisure from time to time.

But at least before spending on vanity you cannot afford, always make sure that you already set aside some money to save for your future.

Believe us because we've been there - some basic money management skills can get you a long way.

Join us for a free two-hour masterclass on creating passive income today.

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This article and its contents are provided for information purposes only and do not constitute a recommendation to purchase or sell securities of any of the companies or investments herein described. It is not intended to amount to financial advice on which you should rely.

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