Here are some principles of money management that can help anyone improve their financial situation:
- To be dynamically successful investing your money, it is not about a rate-of-return. Rather, it is about how many times you can get your money to “turn” a profit for you, or in other words how well you can put your money in motion to make you more money (Money Mastery Principle 10).
- It doesn’t matter how much money you make, only what you do with it that counts.
- Money is emotional, so best to learn how to manage those emotions before you try to manage your money (Money Mastery Principle 1).
- Money is not the most important aspect in life, although it seems like it, because it does have the quickest impact.
- When you track your money, you control your money (Money Mastery Principle 2).
- When you track your time, you control your time, which means you also control your money (since time and money are so intimately connected).
- The deal of a lifetime only comes along once a week, and sometimes twice. This means that contrary to what you have been taught, financial opportunities abound and that it is best to wait for the right opportunity than jump at what you think will be your “only chance.”
- When you die, you leave your money and legacy behind. Money cannot buy a legacy, you create it one day at a time.
- A good rule of thumb is to save 10 percent of your income for life.
- Financial experts are usually very good in only one area of finance, and no better than you in all the others (Money Mastery Principle 5).
- Principles are valuable, but you can’t eat a principle, so ultimately you must do something with those financial principles so that they can translate into viable options for your money. It is vital to know how to implement money management principles, not just know and talk about them.
- The law of the harvest is absolute, we reap what we sow.
These money mastery principles are discussed in greater detail in this blog. Search the archives to learn more about the importance of these ancient, and time-proven ideas.