Knowledge about managing finances is important. Because of this knowledge can determine whether you can stay rich or otherwise. For example, even if you have money 1 million, but did not know how to manage your money can run out quickly without you even knowing.
Already many Hollywood celebrities who are bankrupt because can not poor money management or debt.
Call it Michael Jackson, Nicolas Cage, and Kanye West. Well, if you claim to be people who know about money, you certainly would not say the following sentence.
“I do not have money to save”
Indeed, the less money you earn, the more difficult it is to save. But as long as you already have a decent place to live and enough food, you can still set aside a little for savings.
The problem is whether you want to save or not. Moreover, the actual saving is a matter of habit even though the money saved nothing.
“Investing too complicated”
No investment is instant. Therefore, everything must be learned. Just like a math problem. First it was difficult, but once you’ve mastered the right formula, difficult problem so easily. Such is the investment.
People who know about money, or at least do not want to make it grow a lot, not lazy to learn about investing. They try, fail, and learn from the failures and eventually became an investor.
“What is important now, not later”
People who know about money can balance between the needs of present and future. For example by having an emergency savings and retirement savings. So, still set aside for the future but do not forget to have some fun in the present.
“If I had X, I must be very happy”
Money can be used for many things, so sometimes create false happiness. If I had X, then I can do Y, and I’ll be happy.
Probably yes, for a while. The problem is once you get Y, the satisfaction was short-lived. After that you start to glance at Z, and so on. The bottom line is money can not buy happiness.
“I can not afford it”
The term ‘capable’ subjective indeed alias depends on each person. That is, even the richest man in the world like Bill Gates definitely has limits. Maybe she could have a private zoo or buying a private island. But he could not have created the space station that could take him to the moon anytime.
Money management is about making choices. Instead of thinking what can not you buy, think from the perspective of what you are able to buy. If you want to travel the world, you may be able to, as long as selling a house or a car or spend all your savings.
If you want to retire early, you can make it happen, but it means you have to more often take a little overtime and overtime.
People who know about money going to find out the costs involved and do what is necessary to buy it, not just imagining.