Finance Book

The Richest Man in Babylon by George S. Clason was one of the first books I read on the subject of wealth. I was fascinated by the storyteller’s simple principles to acquire wealth and riches and I thought, “This is too easy”. Yet, all those years ago with the knowledge held within the pages of this simple book, I did not take heed. It would be many years before I understood what the story had foretold and I, like many others, would learn the hard way about building a relationship with money.

With our economy in a state of influx and our country’s future uncertain, it would be prudent to teach our younger generations the importance of establishing a strong relationship with money. So many books have been written on the subject of money management and yet 8 out of 10 households have credit card debt in excess of $10,000. Why haven’t we learned the simple rules of building wealth? Where did we miss the mark? Lack of discipline and respect for money has caused much of this country’s default status. A small portion of blame can be placed upon the educational system. That’s right…the curriculum is not inclusive of finance and money management. Our children are learning how to count, but not how to spend. Parents should be more proactive in teaching their children about the realities that lay ahead in the real world concerning money.

The lessons are simple; the action is difficult for those who have never systematically implemented a plan. However, with commitment and a goal bigger than your immediate wants, you will achieve your financial goals with ease. The following is a rudimentary outline of the seven prosperity principles as this author has interpreted them from the famous book:

Principle 1 – Pay You First

Principle 2 – Create a Spending Plan

Principle 3 – Make Your Money Multiply

Principle 4 – Avoid “Get Rich Quick” Schemes

Principle 5 – Own Your Own Home

Principle 6 – Insure Your Future

Principle 7 – Increase Your Ability to Earn

The old cliché “it’s not how much money you have, it’s what you do with it that counts” is true and there aren’t enough of us doing what we should with our money. The downside to this is we are in a race against time, never knowing when we will run out. Each of the seven principles outlined here gives you the foundation for establishing a financially secure future. You can choose not to be a statistic of the working poor, or worse, never reaching retirement age. Start right where you are; it’s never too late.

By: Kim Harris

One of the most important books that I’ve read during the past year is T. Harv Eker’s Secrets of the Millionaire Mind. I want to review and share a savings plan that Eker shares in Chapter 14 called the Millionaire Mind Money Management Plan. Eker begins his chapter with these words:

Rich people manage their money well, Poor people mismanage their money well.

It’s an excellent chapter, and I’m going to share with you a summary of the financial management plan that will set you on the right path to building wealth. It’s important in all things resulting in success that you take action. So, no matter what you can start with, even if it’s a dollar a month, you must take action and begin to manage your money.

Some people say, “Well, when I get ahead financially, I’ll manage my money.” That’s a poor person mindset! The millionaire mind begins to manage now, because if you can manage a little, then you’ll begin to manage a lot. I was SO into this way of thinking in the past. When I turned it around and began to manage money, I started to get wealthy!

Before I share the money management plan, here are some wealth principles from the chapter and that Eker teaches at his Millionaire Mind Intensives.

Until you can handle what you’ve got, you won’t get any more! The habit of managing your money is more important than the amount. Either you control money, or it will control you.

So, how exactly do you manage your money? Here’s a great plan from the book. Remember, it’s important to start, not the amount. Start with $1 if you must; just start! Get the habit going!

Prepare 6 jars (”Jars” can be literal, or bank accounts, or categories on a spreadsheet).

Place the following amounts in each of the jars every month after taxes.

Financial Freedom Account (10%)- used only for investments and buying or creating passive income streams. Money is never spent, only invested. Also, have a Financial Freedom Jar where you deposit money each day ($1, $10, loose change). Do something daily. Play Account (10%)- Use this money to nurture yourself. Use it for extra-special things in your life. The only guideline is that you must spend the money every month. Use it each month in a way that makes you feel rich! Education Account (10%) – Set aside money for your education (school, seminars,etc.) or your child’s education. Long-term Savings for Spending Account (10%) Giving (10%) Necessities Account (50%)

Start the plan and let the universe know that you are ready for more money.

By: Marc Smith