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The reality is that money comes and goes; More important is how you manage your money. A long time ago when I was learning how money worked; The Rule of 72 was an eye opener. The Rule of 72 is a simple way to determine how long it takes to double your money; This is based on annual interest divided by 72 which will equal the number of years it would take to see some real growth over time. ie let’s say an investment of 1K at an annual return of 1.0% which is more than what your bank is currently paying; It will take 72 years for your money to double. (72/1 = 72 years). The money will only grow to 2K over a period of 72 years.
Now, take the same 1K that is properly invested in the financial markets at 10%, which has historically been the average, it will take 7.2 years for your fund to double. So, over that 72 year period you would have 10 doubling periods or $955,594 just a little less than $1 million; Not bad for 1K. Have you ever wondered why local and national banks have plush ambience and marble floors to walk into? We must learn to manage our finances; budgeting, spending and saving; All are part of being a wise responsible steward.
Over the years, many of us have made mistakes with our money; Whether through extended credit, poor financial management, being deep in debt; or being defrauded by different financial advisors or scam artists. Making sense of our finances requires discipline to do the right things and avoid trivial, meaningless bad habits. Over the past several weeks with this corona virus pandemic, I have seen people spending their hard earned money in foolish ways; Buying more than he needs on any given day. The world is not ending. Spread your money on the table and get what you need. With our finances it shouldn’t take a crisis to get our attention, it should be a year around process of learning how to manage money properly.
It’s during times like these that grab our attention to slow down and think things through before acting on impulse. Also, this is another way that God gets our attention; For those of us who believe that He is the true and living God. He is in control of this whole situation and the whole world is in his hands. Everyone’s goals when it comes to the knowledge of how to manage their finances should include but not be limited to: Purchasing life and health insurance products Legitimate sources of income streams through diversification of multiple assets owning real estate, buying low and selling high or at least having a basic understanding of break even; Or make a profit with whatever business venture you may be involved in. Last but not the least, get advice from trusted reputed professional financial advisors to help you manage a large financial portfolio.
The truth behind money is knowing how to manage it properly and living within our means and having peace of mind, soul and spirit. We are to learn from our mistakes and errors and be a blessing to others who may lack both the finances and the knowledge how to get by with more than enough. Share your learning with others to help them change their mindset from poverty mindset and help them grow their wealth accordingly. It’s time to let your money work for you; Instead of working for money!
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