Money Mastery Unveiled: Your Most Burning Money Management FAQs!

1. How can I stop making impulse purchases and start making money?

You must be disciplined with your money and know exactly how and what you want for yourself, your life, and your loved ones if you have a family or dependents, as well as what you would like your future to be like.

Keep your promises to yourself, your goals, dreams, and achievements, and do not go with the group-think mentality only to keep up with the Jonese’s. Have a life plan, create a spending plan for yourself, and stick with it, no matter how tough it becomes. You have to sacrifice some things and learn some hard lessons, and the key here is a willingness to do, to be, and to have. With that in mind, you will not only stop making impulse purchases but also be able to save money and create generational wealth for you and your loved one’s.

2. What are some of the biggest financial mistakes that people often make in their 20’s?

Not having a budget—having an understanding of exactly where your money goes
Not being savvy with your money, i.e., not being concerned about how you use your money to take care of your needs, your wants, and future savings and investments, and getting into debt as if it is a fashionable thing to do, you must be deliberate in your actions.
Not having a great relationship with money but being willing to learn and embrace that money is part of your existence and you cannot advance in some of your life’s phases without it, please understand that money is not everything.
Not creating a stable core foundation and non-negotiable principles and values that you hold in high esteem about yourself, your dreams, your goals, and your accomplishments, and recognizing that money is just an extension of that, period!

3. What are some of the financial tips that everyone should know?

Commit to learning about money daily and applying the knowledge acquired. Keep a journal to record lessons learned and to continuously review and share them with your siblings, family, and children.
Have a lifelong plan and goals that direct your efforts toward your future.
Invest in yourself, continuously improve, and keep learning.
Keep your expenses in check.
Pay yourself first.
Have a single simple investing strategy that you can live by in the long run, no matter what the economic conditions dictate externally.
Don’t waste your money trying to look cool; it is unwise.
Control your fear, greed, and impatience.
Live within your means and never try to keep up with the Jones’s or the Khumalo’s
Pay off debt faster to stop living large on borrowed money that does not belong to you (there ain’t no such thing as a free lunch). Try to escape the rate race because it is a debt trap.
Do not buy a new car if there is nothing wrong with the old one (after all, let’s be honest, you are doing it just to stroke your ego by impressing your neighbors and colleagues).
Avoid frivolous, excessive, and unnecessary spending that does not advance your future financial goals.
Do not use your home equity like a bank.
Avoid spending too much on your house improvements because your house is not generating any income (unless it is for rental purposes); instead, it is an endless leaking bucket of liability because related expenses never stop flowing out.
Find other streams of income, and do not live paycheck to paycheck.
Remember, a wise man leaves behind a legacy, whether intentionally or not (consciously or not), so leave an inheritance to your next generation so that they do not have to start from scratch.
Finally, when making financial decisions, Be honest and true to yourself, and switch your ego off.
Get rid of all BAD debt; instead, learn how to leverage good debt to your advantage.
Start a side hustle or turn your hobby into a profitable business and create multiple streams of income (it is not only silly but dangerous to rely on one income).
Create a viable financial plan (with clear goals) for you and your family’s future.

Visit Home (Simple-Seamless-Sophistication) at Royalty Ark for more financial-related blog posts.

4. I regret things I have done; what should I do now?

Turn this on its head. There should not be any regrets, but only lessons! Look back at how those challenges (lessons) have helped you shape the person you have become today.

5. How can I help my college freshman manage $$$, without spying or being judgemental on the expenses? He has a student checking account linked to mine, so I can still see the foolish spending and running out of cash. I know he needs some freedom to learn.

This is the most important financial conversation you will ever have with your son starting out on his own at college, and it is not only necessary but long overdue.

This is what I suggest you do:

Have a sit-down with your son and have an open, honest adult conversation about how both of you will handle the financial matter from henceforth, and while you are at it, draw up a budget for his needs and wants every month,h and you will agree that you will deposit or transfer the actual amount on a specified day of the month so that he knows when to expect it. This allows you to keep your side of the agreement and manage expectations.
Keep the accounts separate; if he spends all of his money, he knows he cannot run to you for ‘extra’ as he has already given you a budget for his needs. This account must also have a savings pocket so that he also learns to save his money and not spend it all—create an emergency fund from his allowance just in case something happens on your side and you cannot meet the requirement and he is not left stranded
This requires discipline, consistency, and even-handedness if you really want to make it work, and since you have had the chat, all parties are on board and each one understands what is required or expected, and it teaches your son to start managing his own money better, not only for now but in the future.
Since you are responsible for his livelihood, he also needs to learn to be independent financially and not fully rely on you because anything is possible, but he must also explore other ways of generating money while in college. In this way, he will appreciate and grow his financial and mental fitness by being able to handle his own money early on and you would have laid a stable foundation for him

6. How much can a person save in life with his or her salary if he or she saves a certain percentage of it regularly every month?

Saving is just one part of managing your finances, but it is just a piece of the puzzle. Before you save, you must consider the following strategies so that you win in the game of money:

Budgeting Strategies to Help You Stick to Your Financial Goals

Creating a Realistic Budget

One of the most effective ways to avoid overspending and impulse buying is by creating a realistic budget. This means taking into account all expenses, including bills, groceries, and discretionary spending. By tracking your spending, you can identify areas where you tend to overspend and adjust your budget accordingly.

The Envelope System

Another strategy to help you stick to your budget is the envelope system. It is considered Grandmama’s pearl of wisdom, as you can practically see where and how exactly your money moves or goes. This involves dividing your money into separate envelopes for different categories, such as groceries, entertainment, and clothing. Once the money in each envelope has been spent, you cannot spend any more in that category until the next budget cycle.

The 50/30/20 Rule

The 50/30/20 rule is a popular budgeting method that allocates 50% of your income towards essentials like bills and groceries, 30% towards discretionary spending, and 20% towards savings and debt repayment. This method helps ensure that you’re not overspending on non-essential purchases.

Creating a Realistic Financial Plan and Sticking to It

The Importance of Goal Setting

Setting financial goals is an essential component of maintaining financial discipline. Goals help you stay focused and motivated and provide a sense of direction in your financial plan. Whether it’s saving for a down payment on a house or paying off credit card debt, having a clear goal in mind can help you make smarter financial decisions.

Creating a Financial Roadmap

Creating a financial roadmap is another effective way to stay on track. This involves outlining the steps needed to reach your goals, including specific actions, timelines, and milestones. By breaking down larger goals into smaller, more manageable tasks, you can make steady progress toward achieving your financial goals.

Staying Accountable to Your Plan

Accountability is key when it comes to sticking to your financial plan. This can involve seeking support from friends or family members or even hiring a financial planner to help keep you on track. By regularly checking in on your progress and making adjustments as needed, you can develop the discipline needed to maintain financial stability.

Trust that it helps.

7. What is one small habit that everyone can start today that will pay off tremendously in the long run?

Set your mindset to WIN and stop telling yourself that you are bad at handling your life or money. Being financially savvy is a skill like any other that can be learned, and the first step is to change your Mindset, So stop the lies that you have been told and what you continue telling and feeding yourself, and start making the changes to improve your life and finances step by step.

Go here www.royaltyark.com to read how you can improve your life.

8. How does budgeting help with making better financial decisions?

“A budget is telling your money where to go instead of wondering where it went, says John C. Maxwell. He is a phenomenal leadership guru who could not have said it better. The budget never leaves you wondering what happened or trying to figure out what happened.

However, this road map to financial well-being—the budgeting tool—is the answer to our financial problems, and there is no way around it or no way to avoid it.

6 Benefits of Managing Your Budgeting and Spending Patterns

You can clearly see in black whether you spend extra or much less than you earn.
Having a spending planner (budgeting workbook) in front of you helps you to recognize almost everything at once and become aware of what, how, where, with whom you’re spending, and things you shouldn’t be doing.
It helps you get a better and clearer overview and grasp how you are doing overtime in the long run, as you can extend your columns in your spreadsheet to cover a year.
By often looking at your spending plan, you get the experience of relief and pleasure that all that needs to be taken care of, has been taken care of—yours and your cherished one’s future—so you can plan and live with confidence.
It helps every person, in particular household contributors (family & kids) to come to an equal level of grasp because anyone is allowed to take part and be involved in the method of reaching an informed financial decision.
Creating a preference spending planner helps you get prepared financially and assists in being prepared for what is going to be required to make it happen or work for you, now and in the future

9. Why aren’t hard-working people rich?

They like “comfort zones” where they receive a guaranteed paycheck promptly every month, so they think. They get sucked up into believing that the more they move up the corporate ladder, the more they will have to buy a new house and a better and bigger car so that they can show off that they have made it. Meanwhile, they are getting deeper and deeper into debt. Leaving a comfort zone where they do not know where their next paycheck will come from rattles them and makes them feel very uncomfortable, which is why they do not leave their comfortable, safe jobs.

10. What personal finance mistakes should everyone avoid?

There are several personal finance mistakes that people should avoid to secure their financial future. Here are some of the most common personal finance mistakes:

Living beyond your means Spending more than you earn can lead to debt, financial stress, and an inability to save for the future.
Failing to budget: Not having a budget or tracking your expenses can lead to overspending and not knowing where your money is going.
Impulsive spending: Making impulsive purchases without considering your budget or long-term goals can lead to overspending and financial stress and can wreak havoc in your life
Not saving for emergencies: Failing to have an emergency fund can leave you vulnerable to unexpected expenses and high-interest debt.
Carrying high-interest debt: Paying high interest rates on credit cards, personal loans, or other debt can result in a cycle of debt and interest payments that is difficult to escape.
Ignoring your credit score: Failing to monitor your credit score or neglecting to pay bills on time can result in a lower credit score, which can make it difficult to get approved for loans or credit cards.
Not investing in yourself for the future: Failing to invest for retirement or other long-term goals can lead to a missed opportunity to grow your wealth.

By avoiding these common personal finance mistakes and following basic principles such as budgeting, saving for emergencies, investing for the future, and managing debt wisely, you can take control of your finances and achieve your financial goals.

If you want to read and learn how to overcome these mistakes, go to www.royaltyark.com

11. Can you explain net worth and turnover in simple words?

Turnover is the income you generate from your business as you sell your products or services, which means you turn over the products or services that you offer in exchange for money (income or revenue).

Net worth is the difference between your Assets (own) and what you owe (debt/liabilities) this gives you an indication of what is the real worth of your business.

I hope I have simplified it for you. Best wishes.

12. Can you share one of your experiences that has the most important lessons in your life?

Respect your elders and treat people well. I come from a culture and was brought up in a home where we were taught to respect anybody who is older than us. We would be chastised or judged harshly or back then even harsh punishment including being beaten up if we ever back-chatted or being disrespectful to someone who was older than us.

That automatically leads to treating people well, as we were taught to entertain and be hospitable to people who visit our home by offering water, tea, or even food and treating them like royalty because that will be seen as depositing well-being and good luck not only into your life and beyond but to theirs as well. We call it UBUNTU, which effectively means “I am because you are”. We are all one and all connected.

Unfortunately, we have lost all of that in these times, and then we wonder why the world has gone crazy because we violated the Golden Principle “treat others as you would like to be treated” and then the Platinum Principle “treat others as they would like to be treated”.

This would definitely be a peaceful and wonderful place to live in.

13. How can I become the woman who sets little goals for herself and sticks with them?

I had a deep conversation with a colleague the other day. When exactly does one start to yearn for acceptance?

Is it by birth when we first arrive here on Mother Earth?

Is it when we first feel the pain of non-acceptance?

Is it when we begin to be challenged in a class by both a nasty teacher and wicked classmates and it spills over to the sports field when we do not measure up?

Is it when we fall into the ever-talked-about `peer group pressure`?

Is it when we fall in love and have unexplained butterflies in our tummy?

Is it when we start a new job with the best attire and try so hard to fit into “square pants” when clearly it is a “closed circle”?

Is it when we become a new member of a family when sometimes or other the in-laws are not of the friendliest bunch?

Is it when we move to a new city or country and are labeled a “foreigner” and then be mistreated?

Is it when we write our very first book and accomplish adding the letters of being a Professor and carry themselves with an air of self-importance and then think that “they have arrived” because there is a title called “author” or Prof behind their name?

I believe it is all of the above, when people feel the need to be accepted, they will go to leaps and bounds to succeed in this quest to prove a point. We all have been there!

To read more about this, grab this link below:

Self- Acceptance is self-love and respect for oneself – Royalty Ark

14. What are some good habits of a successful leader?

To be a successful leader, you have to lead by example, be willing to take criticism, and have high emotional intelligence, meaning you have to learn to get over yourself because it is not about you; it is about the people you are leading. Remember, people are watching

You have to be willing to build teams that become better than yourself, not blind followers, whom you are willing to share their successes with, empower, and teach one another, and not be selfish and keep critical information to yourself. You must also be willing to be a follower sometimes because leaders do not know everything, so they must humble themselves. Remember, leaders were once followers.

Leaders have to be good listeners and offer options, not instructions, and be able to understand in order to be understood meaning put themselves in other people’s shoes and not assume that they know it all or have answers for everything.

Successful leaders are readers so they will encourage their followers to read in order to expand their knowledge so that they, in turn, improve their leadership skills and how to work well with people as well.

People do not care how much you know, but they will remember how you made them feel.

15. Why have people become so practical today, totally money-minded, with no place for emotions, especially the new generation?

Hello Rajeev ( hope I have spelled your name correctly), it puzzles me that all people think about is money, what happened to good old neighborliness (good manners, respect, kindness, love, support, caring) I can go on and on.

It seems to me that those emotional values that our parents and ancestors had, have fallen by the wayside and all that matters today is which suburb you are staying in, whether are you living in a triple-storey house on a golf estate(false security) or even driving the latest generation SUV or latest Mercedes Benz or BMW, do your children attend the best privates school overseas, so if you are not living the life, then you are poor and then backward.

Those things do not define not even place you anywhere on a standard metric scale which I am still trying to figure out what that is. It is tough living in our times where money defines life as more than basic caring about others. It is so sad indeed.

15. How do I survive my overdue loans and high interest?

First and foremost, I would advise that you go and negotiate with your creditors (bank) without delay before it gets out of hand and out of control. Ask them to reduce the installments and extend the period in that way for the time being you can breathe a sigh of relief because you will be able to pay less than what you are currently paying right now but it does not end there.

Secondly, create a spreadsheet/or on a sheet of paper stating exactly how many loans you have or owe. Make a list of:

All the loans,
Interest rates,
Payment dates,
Overdue payment dates,
The amount you pay each month.

Once you have done this exercise it will give you a clear overview of how much you really owe and to whom and how much you pay each month. All the details will be there for you to see.

The reason I encourage you to do this exercise is so that:

You own up to where you have placed yourself
Be clear with what you are dealing with and
Finally, come up with a plan of how you will come out of this.

If this is too much for you then I would recommend that you consult with a debt counseling firm in your local area that is if your situation is really bad. They will be able to help you negotiate with your creditors and in some cases even negotiate bigger discounts that you will never be able to do on your own.

However, that will be the last resort because there are pros and cons to signing up with them.

Please consider your options carefully before you make your move

16. How do you know if you are bad at money?

Hey Karina, you are bad at money when you do not have a proper financial plan (goals) of how you want to spend, save, and invest your money, in other words as soon as you earn the money it is out of your hands or out of your bank account.

There is no budget in place to track and see where your money went. The other way to know that you are bad with money is when you have so much debt everywhere and it is “up to your eyeballs” and you do not know how to get out of debt.

The other reason people are bad with money is when you cannot differentiate needs and wants, where you want to please your buddies by spending money that you do not have, with money that does not belong to you(live on credit) to please people whom you do not know and they do not care(living up with the Kardashians) and not see through to your own needs first which is, pay yourself first before you spend that money, so that it can take care of you tomorrow.

It simply means you do not have money values or principles that guide you and frankly I do not blame you because we never discuss money openly and honestly at our homes. We just fumble and pray that we will master it as we go along, so I suggest that you pick up any book a simple self-help book on finance that will teach you the basics of managing personal finances.

I will also urge you to visit our website and learn more about Managing personal finances – Achieve financial well-being Wish you all the best

17. How do you tell if your finances are on the right track?

When you don’t have to worry about or stress over money, all the basics are covered, such as:

Passive income is generated whether you work or not and it comes in like clockwork
All expenses are covered by your income without you worrying about how you will pay for them and debts are at minimal or zero
Savings and investments are now self-generating without your intervention
You have covered and insured all of your assets
You have a written and updated Will for your family, children, and the next generations to come
Finally, you have left a legacy, or, in other words, you have created and left generational wealth not only for your family, but you have also earned their respect, and they will cherish your ideals forever.

Many times we observe people who had not planned properly and in advance and who did not put their finances in order, leaving a mess of financial embarrassment behind and the family left to pick up the broken pieces just because they did not take the time and responsibility to get their financial affairs in order.

I trust that this helps.