Year after year, we continue to joke about the lack of money especially after the excessive spending during the festive season. Most of our savings are spent until we are back to living ‘hand to mouth’, waiting for the next paycheck, just to clear the bills and wait for the next pay opportunity thus repeating the cycle.
We end up cursing the corporate world and how the system is built to cripple us. We seem to be born just to pay infinite bills as if we are trapped in the vicious circle of poverty.
As we all know money can be a very slippery ally, we can never be sure whether it will be around tomorrow or next week, or even the following year. Sadly also, having more income doesn’t necessarily guarantee that we will have more money on us. In some cases, we are surprised to find those with less income fairing much better than those with chunks of money coming in. Here are some simple researched rules that can assist you to understand money better, and manage it as a resource for better prosperity.
- Rule Number One is that money is emotionless. Having money does not make you evil or a good person. Money fuels your life if only you are ready to e motorable. You are the controller of your money, you are the one who decides what you want to do with that money. Therefore, money simply amplifies and magnifies one’s character from the eyes of others. Money is worth only what you do with it. The choices you make determine the direction you take.
- Rule Number Two that money doesn’t reward hard work. I know this is contrary to popular belief. We are bent on the fact that if only we put in extra work and extra hours, then our money will suddenly shot up. If it were the case, then donkeys, long-distance truck drivers, and construction workers would be the wealthiest people in the world. Most of us need to adopt the saying ‘work smart, not hard’. Financial reward nowadays comes through value addition.
- Rule Number Three is that money hates sitting still. Time and time again it happens, we save up some money, or we are expecting some ‘money’, and then problems just manifest out of thin air, and we are back to square one. We assume if we double our income, then we end up living comfortably, but even after quadrupling the income, problems simply seem to amass. Remember that ‘expenditure will always rise to meet income’- Murphy’s Law. Our main focus should, therefore, be doing our best to guide our income in the right direction, preferably towards an investment like purchasing land, planting trees, profit-making communication, or treasury bonds.
- Rule Number Four is that with no risk comes no return. This unwritten rule is as old as time itself. Risk fearing people tend to be less wealthy than those who take more risks. World’s wealthiest people make risky deals and take on situations that would make ordinary people shiver and sweat just at the thought of losing it all. Though with this great risk comes great reward the best way in between is simply to minimize the risks as we do our best to grow the capital base. In Financial investment, smart risk-taking means extra income.
- Rule Number Five is that money is a game. This is the case that excludes monopoly of board cash game where players don’t simply roll the dice to buy board houses, imaginary cars, and go to prison for debts. Here the rule suggests that we change our perspective and outlook on money as a medium of exchange of value and storage of wealth. Money becomes a means to an end and not the end in itself. In the back of our minds, we insist that financial freedom is not free.
- Rule Number Six is that negative minds repeal money. Whenever we associate money with evil and assume all wealthy people had to do something extremely evil and ridiculous to accumulate wealth, we are missing out on the chance to observe and learn how these individuals make money through their habits. We miss out on mentor-ship opportunities by disassociating ourselves from successful and wealthy people. We need positive thinking to attract money.
- Rule Number Seven is that what we are worth on paper, is not what we are worth in cash. Often time we end up overspending because of future expectations or calculations. In other words, we start spending before we earn, and when the expected finances don’t mature, we are caught up in money dilemmas. Word to the wise is that only spend less than what you have in cash at that moment, that is to say, cash at Hand. Detest from speculative spending simply to make a name.
- Rule Number Eight is that you protect your assets. Your assets are the storage of your wealth. Money saved over months and sometimes over the years. This money is transformed into assets that include: Vehicles, Land, Houses, and Fixed Accounts. We should work smartly to protect this storage in its value. We need to avoid taking humongous loans against these assets which can easily lead to loss of the assets due to failure to complete payments.
- Rule Number Nine is that act and behave according to your wage. Don’t live above your means. Don’t spend more than you earn. There are very many ways to paraphrase this statement, but let’s stick to these two. Acting your wage will help you avoid unnecessary borrowing and taking debts to keep up with certain appearances and lifestyles.
- Rule Number Ten is that diversification is not always the right answer. When we become a jack of all trades we end up being masters of none. We need to specialize in one niche at a time, overtime after we have mastered that particular niche, then we can move on to the next one. Otherwise, we will have an idea of everything and expertise on nothing.
Money does not solve all problems but without money we do nothing. Let your money make the whole world your friend and God will be happy with you.
Fr. Paulino Mondo