The science of money

Everyone claims that they could easily generate a lot of money if they had a lot of money, but in reality, this is only a portion of the truth. You need to understand how to make money, save money, and multiply money, which are the three components of the science of money. If you put a year's worth of effort into money making plans and yet after all that time your financial progress did not improved and the same issues, it indicates that you lack the understanding or emotional habits necessary to be wealthy. That is money math and money skills, respectively.

So, here are some examples of how to apply the science of money, both psychologically and practically.

There are three components to the science of money: basic money habits, psychological habits, and money skill. We use psychological habits and money skills to enhance our ability to make money and spend money.

Here are some examples of how to put these lessons into practice:

Money Habits

Study articles show that people who had money habits in place would be three times more likely to make money than those with an inferior money habit. Although it might be hard to imagine a time in your life when you didn't have money, you probably had some money habits, but not all of them were good or consistent. There are three basic money habits you must have to improve your ability to make money.

Control Your Spending – The money habit to take responsibility for your finances is the most important of the three habits, because without a good control of your finances, you are in a constant tug-of-war with yourself, especially when you are in debt and you are trying to save for an emergency.

I had to learn the hard way how easy it is to lose control of my finances, but I now know why it happened. After my business failed in the wake of the 2020 COVID lockdown, I had to figure out how to generate a new income stream and thus had to go back to my old routines of dealing with money. Instead of increasing my spending and cutting into my savings, I determined to change my approach and to put more money into savings. Even now, I am still working on having a financially-secure life.

Learn to Use a Budget – To increase your control of your finances, learn to develop a budget. Budgeting is not just a piece of paper – it is a set of very simple rules that make it easier to understand and manage your finances. There are thousands of helpful budgeting templates and software available to help you develop a simple budget, but you have to take responsibility for the budget.

I used a budget app on my phone and saved $80 in one month by creating a simple budget, but I didn't put into practice most of the things I learned from the budget. I didn't realize that as I added things to my budget, I had to cut out something else, and that the things I cut would have an effect on my ability to make more money.

Spend Less than You Earn

A surprising number of people cannot do this. The key to having more money and to saving more is to learn to spend less than you earn. Here are some simple steps to increase your savings and spend less than you earn:

Earn More – As difficult as this may seem, you should always strive to earn more money. If you want to save money for the future, you have to start saving now, which means increasing your income. One good way to do this is to increase your overall income, which means increasing your skill in the workplace or by finding a new job.

Set a Savings Goal – Many people set a budget and set a goal of saving a certain amount of money each month. However, it's much more effective to set an income goal. Set a goal to increase your income and then set a goal to save more. If you plan to increase your income and are hoping to spend less, you can make some savings in other areas, such as trimming expenses. You can also use the money you're saving to help pay your child's way through college or to increase your net worth. In my case, I set a goal to increase my income by $250 a month, which means that when I increase my income, I can save more money.

Knowledge and the development of good money habit, and emotional stability, especially in the part of not spending everything we earn, are those disciplines that free us from material scarcity.