How to Manage Your Money?

What is the key to financial freedom?

Is it to have a well-paying job? There are many well-paid executives who have big cars and big houses. They also have big loans! (And big wives? ... just joking ... to check whether you are paying attention!). But small or zero savings!

Is it to be lucky, and win a million dollars through the lottery? You have heard of many stories of people who won a million dollars in a lottery, but are back to square one in a matter of 2-3 years.

Did you see the story in the newspapers of a grandmother who received more than a million dollars (because her piece of land was acquired by the government) but who then lost it all? She then became dependent on her neighbours to provide her with food.

Why did these people not keep their big money? The reason is that they did not know how to manage money!

If you do not know how to manage $100, you will not be able to manage $1,000,000! Similarly, if you do not know how to take care of 1 tree, you will never be able to take care of a forest or a plantation with 1,000,000 trees.

My wife has difficulty in looking after potted plants or flowers. Even the most hardy of plants - the cactus - will die (not a sudden, horrible death, I hope ... but more of a slow death, I guess) when she buys from IKEA and keeps it in the house. Would you want her to look after the Botanical Gardens at Kew, England? God bless the flower plants and the trees!

Haven't you heard of the following saying: "'Happiness' is when you have $100, and you spend $99. 'Misery' is when you have $100, and you spend $101"?

The financial tsunami experienced by the United States of America in 2008 is caused by this principle. When many individuals practise 'misery' in their daily lives, the result would be 'misery' on a national scale. Even on a global scale.

When you have $100 and you spend $99, you will have $1 savings. When your financial habit is 'savings' of 1%, you will save $10 when you get $1,000. Your 1% habit will make you save $100 when you get $10,000.

One of the secrets to financial freedom is that you must 'invest'. When you 'invest', your money is working for you! Instead of you working for money! Isn't that neat? Which is your choice?

When you have a financial habit of 10% savings when your salary is $100 a month, what would your savings be when your salary becomes 1,000 per month? What would be your savings when you earn $10,000 per m0nth?

When you invest all your savings (10%) above, beginning when you earned $100 per month, do you think that you could be a millionaire in 20 years' time? Or 30 years' time? Or 40 years' time? Or when you retire? Would it give you peace of mind?

The moral of the story? When you develop your financial habit of saving at least 10% of the money that you get, you will be on your way to financial freedom. Your 10% savings will allow you to invest - letting money work for you (instead of you working for money). T Harv Eker wrote: "Until you show you can handle what you've got, you won't get any more!...We are creatures of habits, and therefore the habit of managing your money is more important than the amount".

I wish you Success in your undertakings and Good Health and Wealth to you and your family. Take care!