How do you manage your money?

Hi Raja,

Congrats on your growing income, perhaps you're doing something properly.

Managing your money may be just as difficult for someone as earning it. But the situation is not hopeless.

I suppose, you have a business plan, and that has a part where you're dealing with your cash flow (at least it should be). That is a lifeblood of any business, beeing either Coca Cola or Average Joe's website.

In that cash flow plan you need to anylyze your permanent and continuous sources of income, and also the permanent and continuous expenses. I can hardly enough to stress the 'continuity'.

Of course, every business need to aspire to make a positive cash flow. Consequently, after a proper anylysis you'll be able to see where and how can you fortify the income side and where arises opportunity to reduce your expenses.

Anyway, managing the end result money, I follow my principles. One part of my income goes to fill the expenses, one part is investment into my business and myself, one part is for my living, and one part is going to reserve.

All the best,

Sandor