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Of course, money matters, it makes the world move, can you imagine living without it, I can’t? I am not saying Money is the most important thing in life, but money is a tool to make yourself and the people that matter most to you happy. You need money to buy healthy meals, wonderful vacation packages, car to drive yourself to work and your children to school, buy a good education for the kids, buy your dream house. In everything you want to do, in one way or another, you need money.

How to have money is self-explanatory, one can work, do business or what have you. The more challenging task is how to keep the money earned and grow it. Financial Literacy is very important if we are to build a certain amount of wealth and stable finance. And there are experts in the field who could provide intelligent choices and advise, like our local banker, insurance consultant, Stock brokers, financial analysts from investment houses like Merryll Lynch, Monness, Crespi & Hardt and more.

If we are not properly oriented on the economics of money, chances are, it will just pass you by. You keep earning, but why its seems that after working so long, you got nothing? Sounds familiar, I was like that. I thank people who gave me advises, if I knew about this Financial Literacy advises early on, I would have saved a lot, but not much because of lack of knowledge. I’ve managed to fully pay some investment instruments lately, thanks to my advisers, do you have one?

4 Important money matters I learned

1. Have a revolving Fund- You must have enough money in the bank which you don’t consider savings. This amount should be equivalent to three months your house hold living expenses. (If you spend $1000 a month, you should have $3000.00 in an account.)

2. Have a Short Term, Secured Investment – This can be a Treasury bill instrument, where you are assured of the percentage income (ex. annual interest of 6%, 10% etc.) placed in a reputable bank, with a defined number of days to claim your benefits.
3. Have a Long Term, Secured Investment – This can be in a form of Insurances, Educational Plan, Pension Plans and the like, where you need to make long term investment, with a secured percentage interest income in a reputable Insurance Company.
4. Option for a High Risk, High Yield Investment- This is the kind of investment where you can have significantly high potential income in a short period of time, like investing in the Stock market, where shares you purchase today, can double or triple fast. It’s high Risk, because stock share can significantly go down and lose its value overnight too. Opening a business can be categorized here. If you haven’t secured investment in the No.1 -3, you are not recommended to do no.4. Work on your first 3 kinds of investments first.
I was badly hit when I invested over a million in savings doing No.4 without securing Investments 1-3. Now, I am learning, please share your experiences on handling money that would help others too.

I will talk next time on credit cards, you will be surprised how it affects your life without noticing it. Stay tuned.

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