When your monthly income goes into the account, you have two choices. It is either you spend it all, or you regularly make sure that there is some money left over that you save, invest, and grow. This is the cornerstone of financial independence.

Reasons for good money management

You avoid debt because you automatically ensure that you don’t spend more money than you have available.

Ideally, you even ensure that you spend far less than you earn and save the excess or invest it profitably.

You calculate correctly and can assess the risk if you do have to take out a loan. This will prevent you from falling into the debt trap.

You know whether and to what extent your later retirement pension will be sufficient. Accordingly, you can make provisions.

You recognize cost traps and avoid them.

You know how to increase your wealth because you are familiar with investments and invest wisely.