Money. It is a powerful tool that people work towards and go above and beyond to earn it. It is used to provide for the family, give one peace of mind, provide security and ensure that future generations are living a better life. Money does not discriminate, it has no bias so really- you either have money or you don’t. You are either making money or spending it. Money behaves like a force in society with laws governing how you spend, earn, invest or save money.
There is the popular saying that money doesn’t grow on trees UNLESS you plant it. Not literally but figuratively, money is like a plant, you have to nurture it and care for it before it grows. Once it starts to grow, you can reap and enjoy the fruits of your labor.
In this article, we review nine rules of money that act as a guide so that we can understand how to use it, earn more of it and change our attitude in our pursuit of it.
They are:
1. Never spend money before you earn it
This statement has been attributed to Thomas Jefferson, the third president of the US. But what does it really mean?
Spending money you do not have yet is often what creates debt. People often borrow money to purchase things they do not need or cannot afford. Debt makes you a prisoner to the money when we need to break those chains and free ourselves to create more access to money.
The most effective way to prevent debt and overspending is by making a plan and sticking to it. When you make a plan, you have an outline or a guide to help with managing your money. What this also means is that you will need to be sacrificing the future at the expense of the present.
What it boils down to is that you have to control your spending and if you need to borrow, limit the need to. It may be hard at first and it requires discipline but once you look at the bigger picture and think long term, you can control what you will spend your money on.
2. Spend less than you earn
The second rule ties in with the first. If you cannot afford to purchase it now, you cannot afford to purchase it with interest on top of it. Again, you can either spend less or earn more. Once you can do that, you create a personal safety net. By practicing personal money management, you can budget what is spent and ensure you are keeping proper track of your finances.
When you practice managing your money effectively, you make an extra effort to ensure you are saving and spending less than you need to. It also ensures that you do not enslave yourself with bad debt, especially when trying to keep up with your Joneses.
Importantly, every dollar you have is your personal solider, some will die, some will conquer. Your objective is to ensure that your soldiers come home safely after a long battle. There are two people when it comes to money, the ones who love to optimize and budget and the one who likes to play it big. Which one are you?
3. The more you learn, the more you earn
Learning is more than just acquiring knowledge just so you comprehend or gather information about a topic, The aim of learning is getting that knowledge so that it can be transformed into value in your life and for your family, friends, and even society.
Knowledge must have the potential to bring change and growth in your life and the life of others. Remember as an entrepreneur, you are always curious, wanting to learn and do more. It is one of the traits that help mold you into a successful entrepreneur. I have also observed this over the years – the more I have learned is the more I have also earned. Life is not a trivia show so focus on learning and building the ladder for yourself. Once we learn, we can follow through with the execution by applying what we have learned. So if it means to invest in that course that will allow you to learn more about something that can bring you more income. Do it.
Learn, build, escape, enjoy and teach others. Practice how to make money, until you get good at it. Study Study Study. Every life skill follows this principle, first, you learn, then you earn.
4. Invest time before you invest money
Time is more valuable than money. In the early stages of life, individuals have an abundance of time and we have to learn how to maximize the time given. It will take time for you to learn, time for you to perfect, and time for you to achieve success.
But the important thing is to start. We don’t want to delay as delay will only contribute to waste. Everyone gets the same 24 hours in a day so how do some successful people seem to have so much more time? The key is to practice time management so you can understand how to use your time wisely.
So, do not waste time binge-watching Netflix or playing video games unless you have found some way to earn from it. Time is precious so we need to start acting like it is.
5. Never be a slave for money, become a master
The sad and ugly truth is that many of us enslave ourselves to money.
Again, this is also linked to how we utilize debt. Some use debt to break themself free, while others use debt to enslave themselves.
The moment you borrow money, your life is no longer yours, it belongs to the creditors. You will have to be trading your time for money, trying to pay that debt off. Instead, look at leveraging. Leveraging is when you tap into borrowed money such as loans, securities, capital, or other assets — for an investment to potentially increase the return of said investment.
For instance, borrowing money to purchase property to perhaps build apartments that can pay back that loan and still have you earning.
So you can either work for money or money works for you. Money loses value when it sits but grows in value when it moves.
6. Don’t chase money, instead be a money magnet
You are always behind money, running towards it. But it is easy to be stuck in the rat race. Don’t.
Develop your skills so that you can attract money. Deliver value, so your skills and aptitude will bring new opportunities. Learn to solve problems and be a creator of value.
Nonetheless, being a money magnet, begins with your mind. Look at how you perceive money. Do you believe that you deserve money in abundance? Or do you have thoughts that doubt that you are not ready for that kind of money?
Your thoughts can limit how you attract money and stall your growth. Remove self-doubt and use affirmations that declare that you are a money magnet. There is nothing wrong with visualizing yourself being financially abundant.
7. Money doesn’t change people, it shows who they really are
Whatever traits were hidden in an individual are now 10 times bigger when a person gets money. Traits that were once dormant are now amplified.
Essentially, the happy becomes happier and the miserable will only become more miserable. Money only unmasks what was there all along.
8. The right partner can make you rich, the wrong partner can make you poor
It is expensive to be with the wrong person. The wrong person can hold you down. They are so close to you that they can alter your faith, they can help build your wings for growth or create chains to hold you back. Your partner is critical, you both have to be aligned and once there is no alignment and no commitment, you are moving towards danger.
Money only solves money problems, they don’t fix relationships.
9. Understand the difference between having money and being wealthy
Financial guru, Robert Kiyosaki, defines wealth as “the ability to survive a certain number of days forward.”
Being wealthy is not only having enough money to meet your needs and live comfortably but being able to afford not to work if you don’t have to. You can survive for some time and still manage your lifestyle.
Imagine if you had to quit your job or you no longer have an active income. How long would you be able to survive on your savings while maintaining the same lifestyle?
Additionally, wealthy people don’t necessarily own the latest gadgets or cars. What they have is a lot of assets, such as real estate and investments, and making that money work for them. A lot of wealthy people in the US are also entrepreneurs.
In essence, wealth creates longevity. Having money doesn’t.
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Profound article! Every tip hits home! Well done team profit Mango!
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