3 Tips to Money Mastery

Financial literacy is one of the most important skills to acquire in life. Yes, some call it money mastery and is important for the reason that it helps you stay solvent. According to a recent study, most people have been failing when it comes to managing this aspect of their lives in larger numbers over the last three decades.

So here are 3 tips that will get you started in money mastery:

#1: Differentiating between needs and wants

Apart from food, clothing and shelter, everything else that we require is a want. So being able to distinguish between the two whenever we wish to spend money will go a long way in ensuring that you stay in the green and not end up old and penniless.

#2: Understanding opportunity cost

Opportunity cost simply means things we have to give up so as to get what we want. For example, if you want to go back to school, you’ll have to forego that many years in income. The same applies for the time that you spend elsewhere. After all, the old adage indicates that ‘time is money’.

#3: Moderate your expectations

It has been said several times before that man isn’t satisfied as our expectation increase with every improvement in our lives. Moderating our expectations is probably one of the best things to do as this will also influence the way we spend money to keep up with a lifestyle that we want. Just remember that the day you begin to lower your expectations, you’ll be able to spend your money where it matters and be the better for it.