Friday, 22 April 2011

Got money? Then don’t lose it.

We should all make note that our world’s engines run on one thing. $$$. All those people who claim money makes the world go round, well those folks are already one crucial step ahead in the game.

Think of the world as a giant monopoly game for instance. You never want to be down in the dumps wondering what happened to your two bedroom apartment on Oriental Avenue, or filling out your bankruptcy forms for the bank to look over.

            The first rule to living life king size couldn’t be any simpler. If you’ve got money, don’t lose it.

One of the wealthiest and most successful men in the financial world will tell you the same thing. “Rule No.1 is never lose money. Rule No.2 is never forget rule number one.” Now I can safely assure you that Mr. Buffet is making all the sense in the world here. After all, if you take a look at his bank balance, he does have 44 billion dollars (still climbing) and is regarded as one of the greatest financial guru’s of our time; And why; because he didn’t go blowing his money away.

Now many people misinterpret the idea of losing money as spending it on items of importance. And then there are those who think that losing money is a literal term.

 So if you have ever happened to have dropped a twenty while on your way to the coffee shop, you can pretty much carry on with your life. But if you find yourself constantly spending unnecessarily, or losing money where other options exist, I would genuinely listen to this. Spending is a must, but losing money is something that can be prevented. The difference between the two is a judgement that no one can really make for you, but it is definitely something you should be aware of. 

One of the most important examples that I find today’s generation does not quite clearly understand is the use and abuse of credit cards. Those little plastic beauties that you have been using are one of the easiest ways to lose money.

 So many major credit cards charge 15% maybe even 30% interest and boom, suddenly your paying an extra 30% which you could have stored away for another purchase or bet yet saved. Now, spending money is okay, but why pay an extra 30% when you don’t have to. Stay within your limits and pay off the amount due before the end of the month and you haven’t lost a penny.

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