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  • Importance of money

    Understanding Money


    Money plays an essential role in our everyday lives. Today, there is barely anything of value you can do or get without having to exchange money for it. As the roots are important for a plant to live, money is crucial to having access to the essentials of life. We all are the root of our financial success or failure as it wholly depends on us whether we save it or waste it.

     

    1. Importance of Investment

    We hold money for three main reasons: transactions, a precaution for unforeseen expenses, and for speculator or investment reasons. Investing a percentage of your income is as important as saving a bit of it. With a good and steady investment attitude, you would be able to increase your net worth and have a good amount of money to fall back on when you are unable to earn or work. With investing, your money is making money with little supervision from you.

     

    2. No such thing as a shortcut

    Except in cases of inheritances, money does not just fall in your lap. It is worked for. You must pay your dues to get paid whether as an employee or an entrepreneur. There is no shortcut to success. You have to put the hours and energy (mental and physical) in before the trickle(a small flow of liquid) can become a flood.

     

    You have to become skilled or well-read, both of which take time and effort. No one would pay for substandard skill and especially as an entrepreneur, if you are not prepared, you will fail.
    Money does not grow on trees.

     

    3. No one will give you things for free

    Nothing of value is free. In truth, nothing is ever free as someone somewhere is paying for it. We all know that to get an item or service, money must change hands. That car or that house you desire will not come to you for free. Now, you might point to jackpot winners and the likes. That is not free, either. For one, they buy tickets, spending a considerable amount of money. In addition to that, the money won is an accumulation of the monies spent by other people who are also playing the lottery game. So, you see, it really is not free.

     

    4. Money brings power

    Money brings with it respect, prestige and power. This power is not necessarily powered to control people, but a power to handle most of what life throws at you. You have more control over yourself and what happens to and around you. You can afford a good education, good healthcare, and good accommodation that will make life better and more comfortable.
     
     

    5. You must save

    Money earned must not all be spent. You must save a part of it for the rainy days and the unforeseen circumstances. Save a bit of what you earn daily, weekly or monthly. Just make sure it is a convenient amount and do not falter. Seeing as most of our monies are in banks, there are many apps that help you save your money. You can also give your bank a standing order to make specific withdrawals at specific times as savings for you.

     

    Always save for the rainy day. Even if that day never comes, you are assured of your readiness.

     

    6. Value money

    Let every note count. Know where your money is going. Have a budget and try to stick to it as much as possible. Having a budget does not mean you should not do fun things or not buy things you desire, but they must be done or acquired within that budget. This way, you are able to keep an eye on your money. You must respect and value that you have an income. It is not so for others.