Make sense of your finances

The reality is that money comes and goes; what is most important is how you handle your funds. A long time ago when I was learning how money works; the rule of 72 was a revelation. The Rule of 72 is a simple way to determine how long it takes for your funds to double; it is based on annual interest divided by 72, which will equal the number of years it would take to see real growth over time. For example, let’s say a 1K investment with an annual return of 1.0%, which is more than what your bank is currently paying; Its funds would take 72 years to double. (72/1 = 72 years). The money will grow to just 2K over a period of 72 years.

Now take that same 1K properly invested in financial markets at a rate of 10% that has been the average historically, it would take 7.2 years for your funds to double. So in that 72-year period you would have 10 doubling periods or $ 955,594 just a little under $ 1 million; not bad for 1K. Have you ever wondered why local and national banks have luxurious settings and marble floors to walk on? We must learn to manage our finances; budget, spend and save; they are part of being wise and responsible stewards.

Over the years, many of us have made mistakes with our money; be it from extended credit, financial mismanagement, buried in debt; or by being scammed by different financial advisers or scammers. To make sense of our finances, it takes discipline to do the right thing and refrain from frivolous and mindless bad habits. During the last few weeks with this Corona virus pandemic, I have seen people foolishly spend the money it cost them to earn money; buying more than you would normally need on any given day. The world does not end. Spread your funds across the table and get what you need to make ends meet. It shouldn’t take a crisis to draw our attention to our finances, this should be a year-long process of managing money properly.

It is at times like these that it calls our attention to slow down and think things over before acting on impulse. Also, this is another way that God draws our attention; for those of us who believe that He is the true and living God. He is in control of this whole situation and has the whole world in His hands. Every person’s goal when acquiring knowledge about managing their finances should include, but is not limited to: purchasing life and health insurance products, having legitimate sources of income by diversifying multiple assets, owning real estate, having a knowledge basic of how to buy low and sell high or at least break even; or make a profit with any business venture you may be involved in. Last but not least, get the advice of trusted professional financial advisers to help manage large financial portfolios.

The truth behind money is knowing how to manage it properly and live within our means and be at peace of mind, soul, and spirit. We need to learn from our mistakes and mistakes and be a blessing to others who may lack both finances and knowledge on how to have more than enough. Share your education with others to help them shift their mindset from a poverty mindset to help increase your wealth accordingly. It’s time for your money to start working for you; instead of working for the money!

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