If you use that money wisely you can make your money work for you instead of the other way around. You can put it all in a savings account where it will grow slowly but safely. You can also invest it in stocks, bonds, real estate or start-ups where it will probably grow faster but with more risk.
Whatever you do with your money is entirely up to you. It’s up to you to decide how fast you want it to grow and how much risk you are willing to take. Most of the time the speed at which your money grows goes hand in hand with the amount of risk you take.
Money management is the most important thing to master to succeed on your path to financial freedom. You can increase your income and decrease your expenses but proper money management ultimately determines whether you become financially “independent”.
You are financially independent if you reach a point where you no longer have to exchange your time for money anymore. If you have a passive income flow that is equal to or larger than your expenses, or you have a stack of money so large that you can live from until you die.
There are tons of things you can do to manage your money. Below you can find all kinds of examples, tips and tricks when it comes to money management.