Learn How to Manage Money Part 1

This post is divided to two parts here is part two: Learn How to Manage Money Part 2

We all know that money is essential to live life, it is a fact, so learning to manage money so that you are conscious where you spend it, is one of the essential skills you have to learn so that you live a better life. (Read also I Did Everything In My Life, But...)

Spending money are categorized to 3 categories according to how much time they are kept with you, and to know them with their names is essential to know where you spend your money, here are the 3 categories of spending money:-

  1. Spending money on false luxury (they are kept with you the least time) 
  2. Spending money on temporary luxury (they are kept with you for more time)
  3. Spending money on permanent luxury (they are kept with you the longest time)

These are the main 3 categories most people spend their money on. Here is what each category means:-

False Luxury

This is what most people spend a big amount of the money they have on because fake luxury is a daily process that if you can’t mention it with its name, spending money in it will be a daily process that can waste a lot of your money. Examples of false luxury are as following:-

  • Eating from a restaurant (Read also Why Are Most Foods Junk)
  • Smoking
  • Drinking coffee in a café
  • Going to cinema
  • Buying snacks

It can take one day or two to enjoy it and then a need to purchase it again occurs. (Read also Learn to Make Money)

Temporary Luxury

This is what most people save some money or take a loan from the bank to purchase them, it can be a monthly purchase, a quarter purchase or a yearly purchase that can make you feel good for a longer period of time. Examples of temporary luxury are as following:-

  • Cheap cars
  • Cheap electrical devices
  • Cheap furniture
  • Travelling somewhere
  • Cloths
  • Shoes
  • Cheap smartphones
  • Internet fees
  • Phone bills

Temporary luxury is what middle class focus on so that they can look richer. (Read also Smart Ways to Budget Your Money Part 1)

Permanent Luxury 

This category of luxury is kept with the individual the longest time and some of these items doesn’t need money at all, it might need from an individual to manage his time and effort so that he can make the best use out of it. Examples of permanent luxury are as following:-

This category of luxury has the longest time of enjoyment and usefulness because it retains its value for the longest time possible.

Part two: Learn How to Manage Money Part 2

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