Understanding Money To Manage Money

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10 months ago

The Best Way to Manage Money is to Know What Exactly is Money

Money is one of the greatest mysteries of the modern world. Money drives everything, from personal life to professional life, and even societies and countries. If you can manage money well, you will live a comfortable life, a happy and satisfactory life, if you cannot manage money, your life will be difficult, painful, and terribly sad. The best way to manage money is to know what exactly money is.

Money comes in different forms, paper (bank notes), plastic (debit/credit cards), and digital (digital wallets, digital money, cryptocurrencies). Money also has different names and it function according to its name.

When you give money to the Church, it is a donation, however, when you give the same money to school and college, it is a fee, when you give to the government, it is tax, when you give to your kids, it is allowances, when you give to someone after you received a service, it is a tip, when you pay in court, it is fines, and when you give to your subordinate it is wages.

If you receive money in your marriage, it is dowry, however, if you received the money in your divorce settlement, it is alimony. Likewise, if someone owes you money, it is debt, however, if you receive from your employer, it is salary, if you receive money upon retirement, it is a pension, when you receive from banks and financial institutions, it is a loan, and if you receive illegally, it is a bribe.

How Money is Managed According to Different Classes

People in our society are categorized according to how much money they have. The general classification is the lower class (or poor class), the middle class, and the upper class (or the wealthy class). There are also other sub-classes such as those below the poverty line, lower and higher middle class, or obscenely rich class, etc. However, the basic classification is lower class, middle class, and upper class.

The three different class views money differently and manages money differently.

For the lower class or poor people, money is to be spent. They spend all of their money to buy food, pay rent, bills, etc. They cannot save, and they cannot invest. They never have enough to save or invest.

For the middle class, money is to be managed. They manage their money in different ways, they buy assets, they save money, and they invest money. They never have enough money, they always have shortages in life, yet, they try to manage their money. If they manage well, they might get into the higher class, and if they are poor managers, they go down in their social hierarchy.

For the upper class, the only thing they do with money is to invest. They invest in new markets and new businesses. They might also be spending on luxuries but the most common thing they do with money is to invest.

What is Financial Education?

Financial Education is not studying in college and university acquiring a degree, getting a job, working hard and saving money, and investing in stocks, mutual funds, and ETFs. Financial education is understanding what money is and how money works. Financial education is two things, debt, and taxes.

Kids are still taught to go to school, get a job work hard, save money and get out of debt. However, saving money will never make you rich, it will never make you debt free. That’s because governments can print any amount of money. In fact, it prints more money when there is inflation, making money lose value.

Why do you have to save money and work for money when the government can print any amount of money faster than you can actually work for it? Even when you make a lot of money, the government will take away a substantial amount in the name of taxes.

Why People End Up Becoming Poor

People who say I cannot afford it because I do not have money; I don’t have money because I cannot save, I cannot generate more income,  cannot invest, are actually lazy people. That is according to Rich Dad or Dad author Robert Kiyosaki.

People become poor not because they don’t have enough money, they become poor due to their mindset. Poor people have a poor mindset. Therefore instead of figuring out how to raise money, it becomes easier to become a loser. All poor people are losers, they do not work enough to make money. They just don’t realize that we all have the power to become rich if we want to. You will never be poor if you learn how to raise money.

How much water can you bring from the ocean depends on the size of your container, if you have a cup, you can bring a cup of water, if you have a bucket, you can bring a bucket full of water. The same is the case with making money.

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10 months ago


That's true, and above all don't let the money enslave you, be the master instead.

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