Understand it.

What we don’t know can easily kill us, but what we know and don’t understand can also kill us. When it comes to finance, people develop problems just because they know how much they are earning and they don’t understand their finances. They don’t have full insight into how all the money is being made and at every point in our life, everybody falls into this category. I had the same problem for years without having a full understanding of my finances even as technology makes it easier for us to calculate how much we earn, people still find it difficult to have full insight into their finances. This is the main reason it is very difficult for people to manage their finances.

The easiest way to stop yourself from spending lavishly is to have an understanding of how much you earn, how much you can spend, and how you earn your money. Some people have 2 to 3 businesses and for these, they don’t understand how much they are earning per hour, They don’t have an idea of how to manage it, and they believe that having a lot of money in their account or earning a lot of money from their business give them access to buy everything that you see but immediately they start to understand how their finances are doing, the amount of money you are making per day or hour, they begin to see that there are some things that you can only buy, but you can’t afford them. 

Understanding stops hidden damage

We all trade our time for money and we all have the same hours of the day whether you are poor or rich the amount of money you are making per day and hour can be calculated. When we start having an understanding of how much we earn during that period, we realize that there are some things that we are buying that aren’t worth it. When we work and save money, we believe our savings permit us to buy everything that we need and want but that is not the case. Sometimes those things cost us way too much and that doesn’t make them worth it.

When we begin to understand that buying a particular product costs us days of our life and not only that, we cannot even afford to buy it twice, It makes you question yourself. When you know how much you are earning per hour, and realize that some products cost you so many weeks, it makes you think about how important they are to you and the kind of value that they bring to the table. The main reason why people spend is because they don’t have an understanding, they believe the money that they’re able to save can be spent on anything that they want, when you have insight and understanding of your finances, you know how much work you put in to be able to afford them and also make you understand the pain and time you put into have such money.

It changes you

When you have all this information, it forces you to improve your earnings per hour, when you know how much some people are making a year and you convert those earnings into hours, you realize that you still have a long way to go and it also makes you want to do the same for yourself. Understanding changes your orientation and pushes you to make money in a way that you will put in less work. Having money saved is not for you to buy things, it is for you to seize opportunities. Understanding brings about clarity and it gives you a different view from what you used to have.

Thanks for your time.

Posted Using InLeo Alpha