Table of Contents
Everyone desires to be rich at a young age. So, he or she can get liberty from financial restriction.
Money is an essential entity for humans. Without money, one can’t expect any respect from society. Consequently, people are busy and crawling to make money.
Many of us have misunderstood the word becoming rich. Being rich is not a day or month process. Instead, it needs some principle insulation, time management, and following money management lessons as well.
So, here in this blog, we are going to unwrap the money management lessons with the perspective of the Psychology of Money.
You can get perfect answers to the following questions
- How to become rich?
- What are ways to become financially free?
- What are ways to become wealthy forever?
- What are the tips to follow to save money?
- How to be happy with the money?
So, everyone thinks of leading a luxurious lifestyle. Even want to show off to the people about their financial level. Then purchasing valuable assets to fulfill the desires.
These are some of the dreams of many people in this world. But, this is not the way to lead a rich lifestyle.
Here is the first piece of advice from Psychology of Money.
Money management Lessons 1: Investment
To make money one should have a clear and positive mindset about investment. He or she should have basic knowledge of investing. So, one should have an attitude of investing in various fields.
Another thing is one should know where to invest. One cannot become super-rich by investing in low-value assets. So, one should be conscious about the investment path.
Here to major factors counts
- Risk factor
Everyone needs high returns with low risks. But it is not even possible. So, the majority of the people choose to invest in Fixed deposits or Gold.
Because it has low-risk factors and fixed return. Here people will make the decision emotionally and finally will be satisfied with the decision.
But here the author from Psychology of Money advises investing in Funds to become wealthy.
Even the author suggests that investing in such a way that total loss will not make bankrupt.
Where there will be risk factors there will be more chances of becoming wealthy.
Money Management Lessons 2: Invest in Yourself
People are busy doing their 9 to 5 jobs intensely. In one life people hardly learn until the age of 22. Then he or she will get into the work-life and neglect to learn new things.
Later, people are searching for various assets to invest in to get a good return. Some will invest in the share market or bitcoin or gold or real estate. But it is not the true way of becoming wealthy.
The majority of the crowd, neglect completely to invest in themselves. So, investing and keep learning new things is essential to getting wealthy.
Learn the things one what you are interested at. Even have conscious about the trendy and latest news of the world as well.
Not learning new things is equivalent to robbers. Because one he not investing in himself to new things then he is unconsciously not aware of the mistake he or she doing.
In the same, Robbers while stealing also unconsciously not aware of the mistake. So, in the context of mentality, both could weigh the same.
Hence, making the investment in oneself is essential and even it can give long-term good results.
Also Read: Zepto Startup Story
Money Management Lessons 3: Live below your means
Always we have lived according to our earnings. If we spend more extravagantly or too little then we can’t be happy.
So, living below our means teaches so many lessons like
- Value of the money
- Money Management
- Self-conscious about the finances
Hence, one has to be below the financial line. Then he or she can learn so many things about money. Ultimately, experience is the greatest teacher.
Money Management Lessons 3: Be Happy from affordable activities
Being happy is important. But happiness doesn’t have any measures depending on the activity we do.
It is not mandatory that doing a party in the club can give happiness. Even chatting with your friends at the corner of the street or arranging a small party on the terrace can give the happiness.
So, one has to be happy with their affordable means. Then one can feel less burden on the finances and never have the feeling of missing out.
Creating precious moments is important. But the moment depends on the people not on the luxury. This is one of the money management lessons from Psychology of Money.
Money Management Lessons 3: Staying wealthy is difficult
Having millions of dollars is the dream of every millennial. Even many of us dream to earn millions of rupees. It takes more time and effort to earn so much.
If you know the strategy of earning money then it will become easy to grow it. But the real test comes in the context of saving and securing wealth.
In America, an avg man spends nearly $400 dollars on lottery. Anyhow his lunch of getting wealthy purely depends on his luck. So, here even though he become rich from the lottery cash price.
But there are maximum chances of losing the money. A person with no money management mindset and skills ends up losing everything.
So, here managing the money is way too difficult than earning it. Having lots of money can make blind and enhance the chances of losing it.
As stagnant water does not have any value. Likewise, having a lot of cash without cash flow also will end up depreciating the value of the money.
Therefore, investing in the right assets is important. Another side, even one has to save cash for the future.
This is one of the effective tips for money management lessons. The book Psychology of Money gives lots of insights into finances.
Lesson 4: Save as must as you can
Saving money can save us from a crisis in the future. So, it is vital to save money instead of spending extravagantly. Always money is an asset which is to be saved of some part.
No one can predict the future. It is not mandatory that your business always goes into positive miles. As you know business or returns are not always stable. There will be a lot of variation in the curves.
Therefore, it is important to save money and can be safe in the future. Even it gives you extra security and strength in life.
lesson 5: Time
Time is the only asset that ever has. So, we have everyone has to get the maximum of it. Everyone is paid according to the number of hours worked.
But the wealthy person always works in such a manner that he control over time. Here is a famous line from the book Psychology of Money ” Use the money to control over your time”.
Ultimately, one has to give lots of importance to the time. Once time is lost it never return back and regretting over the past time is also not worthy.
Psychology of Money is the book that provides money management lessons. These are some of the pieces of advice given to people about money.