Post by oldman on May 13, 2014 8:04:14 GMT 7
In the early part of our lives, we have to work for money. Many of us work as professionals and enjoy what we do. Nevertheless, we work so that we are paid a salary and the money is then used to buy the things that we like. When we are gainfully employed, we don't really need to think too much about money because our monthly salary is usually more than enough to cover our family expenses. Life is bliss as you enjoy your work and the salary pays for all the family expenses.
Usually, there is more than enough to also pay for your family holidays. Life cannot be more perfect and everyone is happy. You are happy with yourself for being able to provide for your family and everyone lives a relatively good life. If you are not careful, the years will catch up with you and before you know it, you will be in the your early forties. If you look back at your life, you have much to be proud of... you have a house, a car and a happy family and you can afford most things.
As the years go by, you will then realise that your job may not be that stable after all. There are younger guys who are more than capable to take over your position in the company. Their salaries too are a fraction of your salary given that you had pay increments year after year. As you become more and more expensive to the company, it may be much easier for the company to replace you rather than to sit you down and explain to you why they need to cut your salary drastically. Even if they are able to cut your salary significantly, the company also knows that you are unlikely to be happy with the arrangement. Sooner or later, you are more likely to leave and hence, it may be more sensible for the company just to release you than to offer you the same job with a lower salary.
By this time, your kids would have grown up and may be preparing for university. They will need more money than before. Hopefully, you would have saved enough money for them. If not, this will add to the mounting money pressures that you will face. You are likely to still have a mortgage to pay and as you grow older, your health too may deteriorate and you have to pay for your medical bills for the first time in your life. You may also begin to start worrying about whether you have saved enough money for your retirement. Keeping that job becomes even more important to you. All of a sudden, all the money worries start appearing for the first time in your working career. It may then too late to start figuring out how to balance your money account.
The right time to learn about money is when you draw your first pay cheque. Learning to manage money is as important as learning to drive. You must learn how to save money and how to use this money to invest wisely. You must learn how to grow your money because one day, you will retire and you will not have a constant monthly salary anymore. You will then need to live within your means or else the money that you have accumulated will not be enough to see you through your entire retirement period.
In many ways, if one looks at life, when one is younger, he has to work for money. As he grows older, he must learn to master money as later on in his life, he must make money work for him.
To master money, one must view money as a number. When you don't have much money, this number is small and you need to work hard in your current job so that you can increase the size of this number. If you continue creating and saving money, this number will get larger and larger. One day, the amount that you have created and saved may be much larger than your monthly salary. When this happens, you know that if you are able to multiply this amount consistently, it will make a significant difference to your net worth.
Hopefully, by then, you are already a seasoned investor and have learnt the art of multiplying money. If you have, the amount you can make from your investments may one day, be many times your annual salary. When you have reached this stage, you know that you have mastered the art of making money. The world is now your oyster. Whether you continue working in your current job or not, is really up to you.
When you are able to make money grow, you have learnt a lifelong skill. So long as your health permits, you know that you will not have to worry too much about money even when you retire. This is the ideal state of affairs as investing keeps your mind active and at the same time, fills up your bank account so that you can live life to the fullest.
Usually, there is more than enough to also pay for your family holidays. Life cannot be more perfect and everyone is happy. You are happy with yourself for being able to provide for your family and everyone lives a relatively good life. If you are not careful, the years will catch up with you and before you know it, you will be in the your early forties. If you look back at your life, you have much to be proud of... you have a house, a car and a happy family and you can afford most things.
As the years go by, you will then realise that your job may not be that stable after all. There are younger guys who are more than capable to take over your position in the company. Their salaries too are a fraction of your salary given that you had pay increments year after year. As you become more and more expensive to the company, it may be much easier for the company to replace you rather than to sit you down and explain to you why they need to cut your salary drastically. Even if they are able to cut your salary significantly, the company also knows that you are unlikely to be happy with the arrangement. Sooner or later, you are more likely to leave and hence, it may be more sensible for the company just to release you than to offer you the same job with a lower salary.
By this time, your kids would have grown up and may be preparing for university. They will need more money than before. Hopefully, you would have saved enough money for them. If not, this will add to the mounting money pressures that you will face. You are likely to still have a mortgage to pay and as you grow older, your health too may deteriorate and you have to pay for your medical bills for the first time in your life. You may also begin to start worrying about whether you have saved enough money for your retirement. Keeping that job becomes even more important to you. All of a sudden, all the money worries start appearing for the first time in your working career. It may then too late to start figuring out how to balance your money account.
The right time to learn about money is when you draw your first pay cheque. Learning to manage money is as important as learning to drive. You must learn how to save money and how to use this money to invest wisely. You must learn how to grow your money because one day, you will retire and you will not have a constant monthly salary anymore. You will then need to live within your means or else the money that you have accumulated will not be enough to see you through your entire retirement period.
In many ways, if one looks at life, when one is younger, he has to work for money. As he grows older, he must learn to master money as later on in his life, he must make money work for him.
To master money, one must view money as a number. When you don't have much money, this number is small and you need to work hard in your current job so that you can increase the size of this number. If you continue creating and saving money, this number will get larger and larger. One day, the amount that you have created and saved may be much larger than your monthly salary. When this happens, you know that if you are able to multiply this amount consistently, it will make a significant difference to your net worth.
Hopefully, by then, you are already a seasoned investor and have learnt the art of multiplying money. If you have, the amount you can make from your investments may one day, be many times your annual salary. When you have reached this stage, you know that you have mastered the art of making money. The world is now your oyster. Whether you continue working in your current job or not, is really up to you.
When you are able to make money grow, you have learnt a lifelong skill. So long as your health permits, you know that you will not have to worry too much about money even when you retire. This is the ideal state of affairs as investing keeps your mind active and at the same time, fills up your bank account so that you can live life to the fullest.