The Money Tree

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Have you ever heard the saying that money doesn't grow on trees? Well, that may be true, but money does grow. Have you also heard that money doesn't buy happiness? Well that may be true, but it also avoids a lot of inconvenience. Many people struggle to pay bills, and that can create a lot of pressure on families when there is a lot of worry about how to pay the bills and buy enough food for the family. This article is about simple ways to be money wise. The first step is to keep a record of all the money you spend, whether it is to buy food, clothes or bills. As you are doing this, use envelopes. If you find that this month your electricity costs $200, get an envelope and write electricity $50 per week. Most people get paid fortnightly, so when you get your pay, you must put $100 into that envelope. Do the same for your other expenses. Gradually, you will find that when your bills come, you will have the money ready. However, that is not all. You cannot spend more than you earn. After three to six months, you will be able to see from your records if you have enough money for all your needs. If not, you must reduce your spending. Buy cheaper milk, buy food that is on special, use less power, buy fewer clothes, turn off power points, take shorter showers or make lunches rather than buy them. Before you spend money, ask yourself if you really need the thing you are buying. Can you live without it? Can you buy it cheaper somewhere else? Whatever you do, avoid borrowing money and paying interest. That is a slippery slope downwards! Rather than borrowing money, find out how much you would have to pay back each month. Put all that money in a special envelope, and when you have the price, you can buy it. With cash, you can often buy it cheaper than the original price. This way, you do not have to pay interest and you will be a winner. Finally, it is important to try to save some money. Even $5 per week will add up. Over one year that will be $260. The next year it will be $520 plus interest. Once you start earning interest, you money will grow – just like a tree!

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