How To Be Your Own Banker

With the increasing prices due to inflation, sometimes, it is not a good idea anymore to put your money in the bank and let it earn the small interests that are often offered by financial institutions. You can actually keep your own money and invest it in worth while projects that will earn more interests.

But, there are people who just can not keep their money no matter how much they want to. These are the ones who cannot control their savings and would often go to a shopping spree. If this is the case, then your money is better off with the bank even if it is not earning anything at all.

If however, you are already decided on learning on your own. Here are some tips that will hopefully help you in being a banker to your own money. Do not worry, it is real easy and what is more, you do not have to have a business or finance degree to make it work.

Be committed.

Not using the money that you have earned in buying frivolous things takes a lot of discipline. After all, who would not want to have so many beautiful things? Commitment to really save money and to curb spending is perhaps the most important factor in learning to be your own banker.

You must develop the self-discipline to only spend when you need to and to know the difference between necessity and luxury. This is not something that is easy to do but in time, one will eventually learn the basics of saving money.

Make records

Saving money does not only involve keeping it in some place safe. You need to be able to keep track of what you are depositing into your self-made account especially if it is some place that is very accessible to people around you.

Keep records of the money that you keep. It is not really so hard. You just need some logbook or ledger that will help you organize your record. With simple mathematical skills of plus and minus, you are ready to go!

Records are pretty important not only in keeping your finances in apple pie order. You will also be able to know just how much you are able to save. This way, you will be able to set target amounts and to psych yourself up to surpass each target.

Do not just keep it. Invest!

Be your own banker does not mean that you will only be letting your money lay stagnant in some drawer in your room. Just like with keeping your money in the bank, find ways for your money to earn interests. Invest in some business or worth while project. Lend it to somebody with interest. Buy some property.

There is really no one road. The main thing is to find ways to make those dollars beget more dollars. That is after all what is done in banks except that money in a bank earns very little interest. The challenge is of course to find ways to let your money earn more interest.

Be strict

One of the things that make banking so convenient when it comes to saving money is the fact that it is hard to withdraw from it. Although ATM machines make money more accessible to the public, it does not change the fact that you still have to go to a machine and withdraw. Money is not too available for you.

By: Ronald W. Firquain
Credit:www.superfeature.com