The Importance Of Saving Money And Its Role In Wealth Management

The Essence of Money Management

Basics of Wealth Management Money is like a kid. It is incapable of managing itself – think of how your kids would have turned out if they were allowed to make their own decisions without your guidance or discipline. Money is the same way. You have to apply structure and discipline to how it is managed and tend to it regularly. Money Management goes beyond just knowledge and skills; it involves good practices incorporating the right attitude and habits. In order to manage money properly, it is necessary you understand the basic principles of management first and then you can add more knowledge in each area.

Initially, Financial literacy could be difficult, but like all learning, the more you know, the easier it becomes. Money Management builds Financial fitness, which is a good habit, just as physical fitness. Below are some effective and efficient money management principles.

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How to Save Money

Spend less than you earn. This principle is at the core of all good money management. This singular principle can make you or break you financially. It is how people who do not get a fat paycheck at the end of every month can achieve their life goals anyway. Spending less than you earn enables you to save. Moreover, what you save can be invested. This principle makes you not worry about money because you have enough savings to pay the bills every month and handle any emergencies if any arise. Persons who always spend more than they earn go further into debt and thus increase their stress level when it is time to pay the bills. This principle also applies to the wealthy because if they live beyond their means, they will eventually lose their riches, and the poor ones who behave likewise will never escape poverty. If you spend more than you earn, you are asking for trouble. Rather than building wealth, you are digging deeper into debt. 

Investing and Budgeting

Invest wisely. It would help if you did more than simply earn money to stand a chance at becoming wealthy. Most importantly, you must hold onto the money you earn and grow it. You grow it by buying assets (things that generate money for you) and not liabilities (things that take away money from your pocket). You need to invest your money in things that offer the potential for profitable returns through; Interest and dividends from stocks, bonds, real estate, or other assets. It is also important to stay away from get-rich-quick schemes as they are risky and have a very short lifespan.

Budgeting your expenditures, You cannot manage your money properly until you understand what you are doing with it. It is necessary that you track your spending and see where your money is currently going; some tools can help with this. Once you can track how you spend your money, you will have a better chance and be more knowledgeable about setting a realistic budget. Many people abandon the process of budgeting because they make unrealistic budgets that only reflect wishful thinking, and when they blow up the budget, they get discouraged.

Remember, whenever you create a budget, it can change to align itself with your monthly income, expenses, and goals.  The biggest financial challenge for many people is saving for retirement. This is the largest amount of money they will have to save in their lifetime. Saving periodically over a long period is the only way to achieve this. However, saving early in your career makes the task less daunting and more achievable. Also, saving early in one’s career allows you to take full advantage of the power of compound interest. You have to start now if you want to make saving for retirement a whole lot easier if you have not yet. You are probably coming up with millions of excuses as to why you should not start now—but the truth is, there will always be an excuse. There will never be a “best time” to start retirement savings. You will always have to do it against competing priorities. 

Planning Ahead and Safeguarding Your Finances

Earn more money. Earning more money solves many issues. Adding part-time freelance work to your day job can help bring in some money, which could be used to meet your everyday needs. This allows you to save more money from your day job. Always Pay in Cash A mantra I love about money management is, “If you cannot pay for it in cash, you cannot afford it.” Living by the mantra is the best way to avoid drowning yourself in credit card debt. Do not make large purchases until you have the money; this will benefit you more in the long run than spending money you do not have.

Use credit cards with caution. Remembering that credit cards are not the same as cash is always important. Because of their high-interest rates and fees, people can easily get into trouble with credit card debt. Endeavor to use credit cards only when necessary and as little as possible, and make sure you always pay the balance each month. If it ever gets to the point where you can only afford to pay the minimum monthly payment on a credit card, you are in financial trouble and should re-evaluate your situation. If you cannot pay off your cards every month, then any extra money you have paid the minimum monthly payment on the credit card should be paid to the highest interest rate card first.

Ensure you are properly insured; this protects you from unexpected events in your life: a car accident, fire outbreak, buglers, and even death. Insurance is essential to money management as it helps curtail unbudgeted expenses from unexpected events.


  1. Brooks, N., & Williams, L. (2018). Understanding Financial Literacy: From Basics to Mastery. New York: Greenleaf Publishing.
  2. Carter, S. P. (2019). Savings and Investments: Pathways to Financial Independence. San Francisco: Wealth Builders Editions.
  3. Duncan, H., & Evans, E. (2020). Budgeting for Success: Realizing Financial Goals through Discipline. Chicago: Fiscal Publishers.
  4. Hopkins, T. (2018). The Mantras of Money Management. Seattle: Financial Insights Press.
  5. Lawson, J. (2019). Credit Wisdom: Navigating Card Debts and Financial Health. Toronto: North Star Publishing.

Informative Speech: Understanding Stress And Its Effects In The Modern Workplace

In this modern era, work is changing at a whirlwind speed. Due to this, work-related stress has become a hot topic of discussion over the last couple of decades. Stress nowadays has become an ongoing dilemma in everyone’s life. It is much more than just a fastidious condition. Stress varies from individual to individual, as everyone has different stress tolerance abilities. According to National Institute for Occupational Safety & Health (1999), stress at the workplace may be described as those emotional and deleterious physical responses which occur when the worker’s capabilities, expertise, needs, and resources will not match the job requirements.

Factors Contributing to Workplace Stress

Numerous ingredients contribute to stress in the workplace. The first one of those is Job Insecurity. As today’s economy is vague and competition is sky-high, companies go for cost-cutting expedients and layoffs. This also drives them to increase their workload and expectations. Fear of losing a job and meeting high demands causes undue stress in employees. As depicted by Lyle H. Miller (1995), in such cases, a person proves to be a proverbial square peg and his job a round hole. One particular reason which makes an individual bonded in such a job is “Golden Handcuffs.” Sometimes, superiors also generate a deadline-driven environment for their workers, and they have to strain their every nerve to finish the task per the instructions.

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According to Dianne Crampton (2011), the stress of competition at work may surface in “dog eat dog” behavior for rewards, and it can escalate into desperation to hold onto a job. Besides this, as claimed by S. Michie (2002) act of presenteeism is another crucial factor contributing to stress in the workplace. In one of his articles, Paul Sellers (2018) said that a small quantity of flexibility is acceptable, but trouble occurs when unpaid overtime is stretched to tiresome lengths. This is even more irksome in poor sections.

Crampton (2011) says, “Workplace conflict is inevitable,” and this is another strand leading to stress. It may result from gossip and rumor and is thus called The Poison Grapevine. One possible reason for conflict with coworkers may be divergent personalities which can clash and cause stress. Jealousy amongst colleagues may also be a cause of dispute. All these lead to a revengeful aura at the office, the by-product of which is found to be stress.

The Detrimental Effects of Prolonged Stress

Moving on to the effects, one can say that although it is facile to pinpoint the effects of stress at the workplace, narrowing them is not easy. It will not be erroneous to say that the old proverb “Excess of everything is bad” also fits true in this case. In small doses, stress acts like a burst of energy. It adds fuel to one’s working ability. On the other hand, it can also kill the body and spirit when it crosses its limits.

According to Dr. David Posen, ongoing stress is like driving a car in fifth gear all the time – unsuitable for the motor. Stress causes headaches, indigestion, and procrastination. As per Buckley (2005), disturbed sleep results from long-term stress. Ceaseless stress cycles may even cause cardiovascular diseases, musculoskeletal and psychological disorders. In extreme cases, it may even result in suicide. Researchers from Harvard and Stanford (2015) found that workplace stress can be as toxic to the body as Second-hand smoke. Thus stress can be perilous.

In a nutshell, stress has become an inexorable part of our life. It can catalyze the peak performance of employees. As per CDC, stress sets off an alarm in the brain, which can positively and negatively impact our body and life; i.e., stress acts as a double-edged sword that uniquely affects everyone. Paul J. Rosch MD has compared stress to tension in a violin string, beneficial in adequate amount else fatal. Therefore, one has to build his path of going through stress and coping with it to have a glorious future.


  1. National Institute for Occupational Safety & Health. (1999). The dynamics of workplace harmony. Starlight Publishers.
  2. Lark, E., & Fennel, J. (2015). The smog of stress: Modern workplace hazards. Harvard & Stanford Press.
  3. Centers for Disease Control and Prevention (CDC). (2000). Brain alarms: The dichotomy of stress. HealthBridge Publications.
  4. Rosch, P. J. (2003). Strings of life: The balance between tension and harmony. Harmony House Publishing.

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