Know your finances

The reality is that money comes and goes. More important is how you handle the funds. A long time ago, when I learned how money works; the rule of 72 was an eye-opener. Rule 72 is a simple way to determine how long it takes for your funds to double; it is calculated by dividing the annual interest rate by 72, which is equal to the number of years it takes to see the actual increase in overtime. For example, suppose a 1K investment has an annual rate of return of 1.0%, which is higher than what your bank currently pays. It will take 72 years for your funds to double. (72/1 = 72 years). In 72 years, this money will only grow to 2K.

Now, to correctly invest the same 1K in the financial market at a historical average rate of 10%, it will take 7.2 years to double your funds. Therefore, in these 72 years, you will have 10 doubling periods, which is $955,594, which is slightly less than $1 million; 1K is not bad. Have you ever wondered why local and national banks have a luxurious atmosphere and walkable marble floors? We must learn how to manage our finances; budgets, expenditures and savings; all part of being wise and responsible stewards.

Over the years, many of us have made mistakes with money. Whether through extended credit, poor financial management, buried by debt; or cheated by other financial advisers or scammers. In order to clarify our financial situation, we must discipline ourselves, do the right thing, and avoid frivolous bad habits. In the Corona virus pandemic of the past few weeks, I have seen people spend their hard-earned money stupidly. Buy more than you normally need for a certain day. The world is not over. Spread your funds across the table to get everything you need to sustain life. Arousing our attention to finances should not cause a crisis, but how to properly manage funds within a year or so.

It is during this period that we will pay attention to slowing down and thinking about problems before we take the impulse. Again, this is another way God draws our attention. For those who believe that he is a real and living God. He controls the whole situation and masters the whole world. When everyone understands their own financial management knowledge, their goals should include but are not limited to: buying life and health insurance products, obtaining a legal source of income through multiple asset diversification, owning real estate, and knowing how to buy low and sell high or at least achieve income Have a basic understanding of balance; or profit by engaging in any business. Last but not least, trusted and reputable professional financial advisors will advise you to help them manage large financial investment portfolios.

The truth behind money is to know how to manage it properly and live within one’s abilities and keep peace in mind, soul and spirit. We must learn from mistakes and mistakes and bless others who may lack both financial and sufficient knowledge. Share your education with others to help them change their mindset from poverty and increase wealth accordingly. It’s time for your money to start working for you; not for money!