How to be better with money (3 step money management process)

It seems like the internet nowadays is flooded with how to make money, how to make money online, how to make money fast, how to make money from home. Everywhere you look there is content on how to make money and increase your income. But what good is that if you do not know what to do with it, how to manage it and how to multiply it properly.

You have found yourself onto this page because you have a passion for finance and a willingness to become wealthy.

And one of the keys to becoming wealthy and achieving your goals is learning how to manage your money.

This post will give you a very rough blueprint in order to climb the financial ladder to achieve your goals and build wealth!

I condense it into a three step process:

1. Eliminating debt and creating a safety blanket

2. Creating goals and minimising your expenses

3. Learning how to multiply your money

1. Eliminating Debt and Creating the safety blanket (emergency fund)

You're lying if you haven't already read this before when talking about money:


"Debt is BAD! Get rid of it"

And I won't go on any more than necessary. To summarise it quite simply you need to remove your BAD debt ASAP. This being debt that charges an interest way above the rate of inflation. That usually being bad credit card debt. It is advised you pay off first all your serious debts before moving onto the next steps!

Financial security is a basic human need or desire. Creating a financial blanket and cushion provides a bit of stress relief in life in general. This leads to the first tip into better managing your money and I am sure you have heard of it before but create that emergency fund!

Now how you want to do this is up to you and what you think is necessary. All over the internet there are certain numbers and time frames you should create in regards to an emergency fund.

People say create an account with $1000 or a few $1000 and use only for emergency situations only! Or calculate your monthly expenses and create an emergency fund that you could live off for 6-12 months.

In the end it is up to you there is no real set amount you should set aside however there are A LOT of recommendations and opinions out there. It is highly recommended you create this emergency fund if unforeseeable events occur such as losing your job or becoming unable to work due to illness or physical incapability. In these cases emergency funds will help you not get sucked into a hole of high interest debts.

2. Limit your expenses and set your financial goals

This part of the process can and is encouraged to be done during the first part of the process. That being to start your financial goals. The goals you have in your mind will be completely different to the next guy. Whether that is to work towards financial freedom, increase your income or monthly profits or escaping the rat race altogether.

Whatever your goal is you need to properly envision it and set out a plan to achieve this goal. You need to have an idea of what you're working towards as this drives your motivation.

Now the first step to many financial goals is to LIMIT your expenses. Why? Well by limiting your expenses you increase your profits.

This comes by simple things like:

  • Maybe swaying away from that daily coffee you get at the cafe

  • Minimising the amount of times you dine out at restaurants per week

  • Buying home brand products at super markets instead of expensive brands

  • Making your lunch at home opposed to buying it at work

Then with this extra money you start to build up you can continue to the next step.

3. Learning to multiply your money

Now your at the fun stage (in my opinion!)

You have created an emergency fund, you are actively minimising your expenses and have a clear financial goal and destination you want to reach. You are starting to accumulate cash that is just sitting in a bank account.

What use is this! It's time to make it work for you! It's time to turn that money into more money and keep repeating the process until you reach your desired goals.

Now what adventure or path you choose to go down in order to do this is entirely up to you. I am in no means as I have said a legal financial adviser however I will suggest below ways in which you can multiply your money. There are many more ways than what I list below but they are a good starting point.

Stock Market

For some of you financial savvy people I bet the first thing you thought of was the stock market. Now entering the stock market is not easy for most people. You have to learn to detach all emotions when you are trading in the market.

You will wake up some mornings with 10% of your portfolio disappearing and some mornings you can wake up with an extra 10% in your portfolio. It is what you do from here that decides whether you are a good fit to be in the stock market. In these situations you need to not act on impulse. Especially if you are trying to multiply your money over the long term! Which everyone should!

I could go on and on about the stock market however I won't. If you want to read more check out the link highlighted (Stock Market.)

In short historically it is said that the stock market gives on average a 7% return when looking at a long term approach. Hence your mindset should be with your cash you have built up to lock it away for 10-20 years or even more and just harvest the historically long term benefits of the stock market. In turn making your money make you more money!

Real Estate

Now real estate is not as easy as the stock market. For one it is much more active way to multiply your money and two it is much more complex and due to this a rookie could end up losing a lot of money.

Like above I will not go into much detail on how you can multiply your money in real estate as there are many ways! Check the link highlighted to learn two of the major most common ways that real estate can make you money. (Real Estate) And by no means base your opinion and your investments off only what you read on this site! Especially for real estate. There is much to learn but just know that it is a very achievable way to multiply your money if you choose to do so.

Starting your own adventure

Straight away I will tell you this is no guarantee to multiply your money. The idea with this one is to invest into a small business or niche content creating money creator. Whether this be by creating a:

  • YouTube channel

  • Blog

  • Instagram account

Once you have invested not only your money but time into these adventures you may be lucky to see an income evolve. From this it can be grown to a point where the money you have invested has turned into a money making machine.

For educational purpose the ideas listed above make money in most commonly advertisements or sponsorships as well as affiliate marketing. These are just some ways that you can turn your money into more money. However unlike the stock market and real estate they are no where near as guaranteed to yield the return on your money.

In conclusion the way you multiply your money and the avenue you take all depends on your financial goals. It is advised you seek further research and advice in order to multiply your money adjusting to your individual risk factor.


Disclaimer: Young Money Investing is not a legal financial adviser. It is advised you seek legal advice before actually investing your money. Young Money Investing aims to help inspire, inform and reach your financial goals.

Young Money Investing is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.

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Young Money Investing is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.