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.
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.
Your money habits will determine your financial future.
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.
His book spoke much about what you should do with the money you earn during your working years.
Value and Control It
The very first skill you must acquire is to value the money you earn.
That seed could germinate and grow several money trees that will yield durable fruits in the future.
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.
The money was put in instruments that overgrew inflation over the years.
Strive to know more about your personal account.
Have a record of your personal finance in a durable book.
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.
I feel a kind of confidence and measure of power of that knowledge which has helped me to acquire financial discipline.
Anything you spend your money on without the prospect of making more money is a liability.
They know how to do this very well.
Your savings should be a tangible percentage of your salary.
One thing you must however work against is to allow your savings to be eaten up by inflation.
Keeping devalued money is not worth the effort.
The left over should be channeled to the next money management habit.
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.
Some who invested put their monies on enterprise that will keep them enslaved after retirement.
Robbert Kiyosaki an American financial expert spoke extensively on the 7 levels of investors that I will share with you briefly to further sensitize and empower you to put your financial destiny in your hands.
They either spend everything they make or spend more than they make.
Unfortunately this zero level is where about 50% of the adult population would be categorized.
Often they even invest with borrowed money.
They live their financial lives with their head in the sand like an ostrich hoping and praying that everything will work out.
For the most part, they are not conscious about money and their spending habits.
The money is in a lower risk, low return vehicle such as a money market checking account, savings account or certificate of deposit.
Believe in paying in cash, they like the security of money in the bank.
This level of investor is aware of the need to invest.
They make up what we call the middle class.
They are actively involved in their own investment decisions.
If you are not yet a long-term investor, get yourself there as fast as you can.
Get control of your spending habits.
Live within your means and then increase your means.
They are focused, not usually diversified.
They are well educated in the world of investing and actively seek new information.
In America, less than one person in a hundred is a true capitalist.
It is the capitalist that provide the money that create the jobs, the business, and the goods that make a country prosper.
Paul Gattys etc.
Read it over and over again to know where you belong and how you can improve on your money habits.
This is the entrepreneurial side of money.
Everyone will need to create multiple streams of income in the future.
The crave for downsizing and re-engineering or reform globally by government and private establishments necessitate that you retrain yourself and acquire more money making, marketable skills.
You must learn the skills of being your own boss, even if you are working for a solid corporation and plan on retiring there.
You can make money from what you are good at.
Do what you love and the money will follow.
Keeping it is another.
You must learn how to get your homes, cars and business entities out of sight through corporations, trusts and family partnerships to build a financial fortress around your assets.
Make sure they do not fall prey to greedy relations who went to reap where they did not sow.
Remember the story of Harvard University which was rated the best in the world.
You multiply what you have now through giving.
It is better to give than to receive.
Pay your tithe regularly and consistently.
Remember that the ultimate purpose of having money is to help others.
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