There are certain principles to manage your money by that will help you earn, protect and grow your wealth over time. Here are 5 of the best:

1. Have a Plan

Quite simply without a financial plan you will wonder aimlessly, not knowing whether to save or spend. The beauty of having a plan is that you know exactly how much you can save and spend, why you are saving and spending and what the outcomes are likely to be. Having a plan gives you the ‘why’ so you can feel good about your money.

2. Be Cashflow Positive

Rule number one of financial planning is to spend less than you earn. Without this, life will be a constant struggle and will only become harder the longer you spend in negative cashflow. So if you do find it difficult to restrict your spending to your income levels then have a very close look at what you are spending money on and think carefully about whether you could do better.

3. Make Money While You Sleep

Almost everyone would like to be in the situation where they never have to work again. Who would like to go on a permanent gap year? Great, the only problem is that you need to have some money coming in before you can do that. The good thing is that it is pretty easy to have money coming in without you having to work for it. It’s called passive income, passive because you don’t have to earn it, it just keeps coming, for the rest of your life, so that you can enjoy your life. The only real bit of work you need to do is work out how you are going to get this money coming in. Some people use a Pension, some invest into ISAs, some buy houses and let them out, you may have other ideas, but unless you take action, this retirement thing just isn’t going to happen for you.

4. Invest Well

Financial products are a necessary part of managing your money. You will have to come across them at some point. Regardless of what type of financial products you take out, whether these are loans, mortgages, Pensions, ISAs, savings accounts, current accounts, insurance etc. it is always important to stick to the basics. Keep your costs down, make sure the products suit your needs, avoid financial porn and sleazy sales people, watch out for hidden terms or charges and check before you buy.

5. Have Fun With It

If you don’t enjoy something then you will most likely not want to do it, and therefore will end up not being very good at it. Managing money is something you can become good at, but you have to enjoy it. So make sure it doesn’t become a drag, have some fun with it. Plan your next holiday, buy something nice, invest and save to make you feel good. Money is hard to earn so it should always make you feel good when you do have it.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on