How to Develop Winning Money Management Skills
Is it true that more مكن عد النقدية will yield more fortune? Not certain. The life stories and habits of the wealthy doesn’t support the popular believe that the more you earn, the rosier your life will become. If money were to create life fortunes, lottery winners could have remained very rich years after hitting the big buck. What about great boxers whose fortunes has suddenly nose-dived? Hollywood celebrities of yesteryear are currently living in abject penury as a result of lack of money management skills. You surely don’t wish to remain in the rat race all your life.
Robert G. Allen in his book multiple streams of income emphasize on the need to acquire good money management habits as the wealthy people do so that you can become wealthy and financially free. Your money habits will determine your financial future. Your money habit is the key factor to your character money- wise and your financial destiny. You will continue to experience long term lack and financial short comings as long as you remain unlearned in the skills of profitable money management.
The very first skill you must acquire is to value the money you earn. The money in your hand is likened to a seed. That seed could germinate and grow several money trees that will yield durable fruits in the future.
Do you know that the single dollar in your hand is a potential one million dollars? You call that an exaggeration? Okay listen to this. Recently an analysis was done in the United States to know the actual value of a dollar several years ago as compared with its current value at the New York exchange. That one dollar was estimated to be more than $1 million. The money was put in instruments that overgrew inflation over the years.
I learnt this lesson very early enough when I started my working career. I quickly bought a hard cover ledger book where I record my money spending habits to keep track of how my income is being spent over the years. The mere knowledge of how I spend my salary in the last 5 years has opened my eyes to several other things like the determination to take my financial future out of the hands of Government. I feel a kind of confidence and measure of power of that knowledge which has helped me to acquire financial discipline. I now know the true meaning of asset and liability.
This one is not new to most civil servants. They know how to do this very well. Nevertheless, I must point your attention to how to do it for maximum benefit. Your savings should be a tangible percentage of your salary. Financial experts suggest you save up to 10% of your income and if you can do better than that, good for you.
Your goal should not be only to save but to ensure that your savings is not left at the mercy of inflation. Keeping devalued money is not worth the effort.
You should adopt the principle of saving sufficient amount capable of sustaining you and your family for 3 months even if you are not paid your salary. The left over should be channeled to the next money management habit…
This is what most income earners never know how to do well. Some out -rightly avoid it for fear of losing their hard earned money and yet what they did not know is lacking is the right information on how to be smart investors.
I have taken it upon myself to speak to some senior civil servants on this matter; what I discovered left much to be desired. Some who invested put their monies on enterprise that will keep them enslaved after retirement. When are you going to enjoy your life if you still continue the same way you worked for Government after retirement? Your strength diminishes with old age so you must learn to invest your money in money instruments that has the potential to multiply the money while you rest.