Laws of money To Help You Through “Jan-Worry.”
Year after year, we continue to joke about the luck of money during January after the excessive spending during the festive season.
Most of our savings are plummeted and we are back to living “Hand to Mouth,” waiting for the next pay check, just to clear the bills and wait for the next pay check just to repeat the cycle.
We curse the cooperate world, the 9-5 and how the system is built to cripple us and how we were born just to pay bills, and 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 you will have more money on you. In some cases, we even find those with less income fairing much better than those with chunks of money coming in. Here are some simple researched rules that can help you understand money better, and manage it better as a resource.
Rule Number 1:
Money is emotionless. Having money does not make you an evil person, having money does not make you a good person either. Money gives you fuel for your life. It is you the controller of the money that decides what he/she chooses to do with that money. Therefore, money just amplifies and magnifies one’s character.
Rule Number 2:
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 construction workers would be the wealthiest people in the world. Most of us have heard the saying “work smart, not hard” being thrown around. True financial reward lately seems to come through value addition.
Rule Number 3:
Money hates sitting Still. Time and time again it happens, you save up some money, or you are expecting some “ka money”, and then problems just manifest out of thin air, and we are back to square one. We assume if we double our income, maybe we shall live more comfortably, but even after quadrupling the income, the problems just seem to amass.“Expenditure will always rise to meet income”- Murphy’s Law. Our main focus should therefore be trying to guide it in the right direction, preferably towards an investment or treasury bonds.
Rule Number 4:
With no risk comes no return. This unwritten rule is as old as time itself. The risk averse people tend to be less wealthy than those who take on more risk. World’s wealthiest people are seen to make dealings and take on risks that would make ordinary people shiver and sweat just at the thought of losing it all. Though with this great risk comes great reward. Still we can look for slightly safer options with minimum risk and try to grow our capital base. Risk is extra life, minimum risk, is better than no risk at all!
Rule Number 5:
Money is a game. Okay in this case I don’t mean monopoly the board cash game, were players roll the dice, and buy board houses, imaginary cars, go to prison for debt and all that. Though it is quite an informative game. Rule 5 suggests that we change our perspective and outlook on money, it should be viewed as a medium of exchange of value and a storage of wealth. It is a means to an end, and not the end in itself.
Rule Number 6:
Negative minds repeal money. Whenever we associate money with evil and assume all wealthy people had to do something extremely evil and grotesque in order to accumulate wealth, we are basically missing out on a chance to observe and try to learn how these individuals make money through their habits and “modus operandi,”we miss out on mentor-ship opportunities by disassociating ourselves from successful and wealthy people.Be positive and you will attract money.
Rule Number 7:
What you are worth on paper, is not what you 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, only spend what you have in cash, that is to say cash at Hand. Detest from speculative spending.
Rule Number 8:
Protect your assets. Your assets are a storage of your wealth. Money saved over months and sometimes over years even.This money is transformed into assets that may include: Vehicles, Land, Houses and so on. One should work hard to protect this storage of value. Avoid taking out humongous loans against these assets, that would lead to loss of the assets due to failure to complete payments.
Rule Number 9:
Act 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 with the above two. Acting your wage will help you avoid unnecessary borrowing and debt in order to keep up with certain appearances and life styles.
Rule Number 10:
Diversification is not always the right answer.“Jack of all trades is a master of none.” Specialize in one niche at a time, overtime after you have mastered that particular niche, then you can move on to the next one. Otherwise you will have an idea on everything and no expertise on any of them.
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