Everyone has interacted with money directly or indirectly. It is basis for every transaction. Despite its popularity, it is not understood by most people. That’s why it is often abused by the wealthy and not-so-wealthy. Lengthy financial education programs or courses are popular these days, but the key points are often ignored or not well talked about. I hope you find this article valuable. This is just a reminder of what you already know. The four principles of money is not only helpful for today, but it strengthens one’s financial position in the future.

1. You have to make money to have money

Many able people are still dependent on others to help them with a little change. Many people are stagnant because they don’t have the extra drive to make money or don’t want to work at all. The best place to go when you are broke is work. No amount of stipends received can satisfy or give you your dream life. If you have the opportunity to work, outwork everyone around you. This fundamental principle of money is common, but fewer people practice it despite the ease of securing a job in this age.
P.S. I totally understand that some people don’t have the skill set and other opportunities to secure a job.

2. Money has to be managed after being made

This is one of the most prevalent problems of our time. There are several resources that can be used to manage money these days, but most people are letting money manage or control them more than ever. Managing money is basically knowing when to spend money and how to save it. Failure to have a handle on money can force one to work unexpectedly. We have heard stories of lottery winners and athletes who squandered their big contracts, due to mismanagement or inadequate planning. This often results to bankruptcy. Managing money requires planning, budgeting and saving it. Avoid the temptation of not having to save for raining days. Find a way to squeeze something out of the little you have and stash it in a secured account. Have up to three to six months expenses (emergency funds) saved. This will prevent financial “mess” when your source of income hits a pause or stop status.

3. Keep some around for multiplication purposes

Multiplying money is different from saving it. Multiplying money is putting up some for investment purpose.
The goal here is not to necessarily get multiple folds of the initial investment immediately, but to have something that yields returns.
The return of your investment can catapult you to a different status in life. I have a friend who invested in real estate for six years straight
while holding a full-time job. After the fifth year, he noticed that he can actually start house-hacking (real estate investment).
He increased his emergency saving during the sixth year and quit working. He is doing well now by increasing his portfolio from every returns.
This may not be everybody’s story or result, but you never know until you start putting some money away.

4. There’s nothing wrong in being mirthful

The last principle of money which is my favorite is enjoy it. There is nothing wring in enjoying this life reasonably. Enjoying life includes taking care of yourself, your loved ones, and all the people you can help. Personally, I believe the best way to spend money is by giving. Unfortunately, to get to this principle, you have to go through the previous ones. You cannot give what you don’t have. To be a giver, you have to be a worker and saver. Broke people cannot help people. I desire we get to the level where we can enjoy and give money, or resources away without looking back. Ecclesiastes says, it is a gift from God to enjoy wealth in a cheerful and comfortable manner. Enjoy the results of your hard work but don’t forget to help the less privilege. Find a local organization where you can contribute your time or money to improve the lives of others.

Money is not the solution to all the problems in the world, but it can definitely help you have a meaningful life. A meaningful life cannot be possible without being intentional about it. You have to plan for money just as you would plan for everything else. Keep this principle in mind when next you have money. These four principles of money should always be remembered before any money decision is made.