Life Dynamics

Managing Money

Why this tactic matters
For some money is the exclusive focus of life, a preoccupation with acquiring it or a source of ongoing worry to distract from other life priorities. Managing Money is the tactic that takes a proactive stance to your financial affairs to ensure that money is a “means” to the achievement of your life goals and not an end in itself.

Laid back about money matters, with the potential to neglect the disciplines of financial planning and management		Proactive in money management, utilising robust disciplines to optimise long-term financial well being

10 unwealthy habits It’s not the money, it’s the principle of the thing Be tough in analysing your attitudes and beliefs about money Manage the paperwork Be “brutal with the facts” Understand what you earn, spend, save and invest The 10% Rule Keep control of your expenses Create a financial buffer Keep informed Get professional advice but keep a hands on involvement Know your worth in the marketplace Build net worth Know how to shop If it sounds too good to be true it is		5 Ways to Wealth Talk through financial matters with your partner and significant others Make money from your “stuff” Know where money management is taking you You can’t take it with you Put money into perspective Assess your “opportunity costs” Exercise financial stewardship Don’t discuss your financial affairs Encourage good financial habits in your children Don’t loan money to family or friends

The Spanish Lottery
The Spanish Lottery is one of the biggest in the world and participation is a national obsession. One grand prize winner was asked by the Spanish news media, “How did you do it? How did you know which ticket to buy?” He replied that he had searched until he found a ticket ending the number forty-eight. When asked “Why forty eight?” he responded: “For seven nights in a row I dreamed of the number seven, and since seven times seven is forty eight….”

Money seems to make us irrational: in the optimism of our plans to get it or the extravagance with which we get rid of it. The management of money is an important indicator of our life philosophy and outlook. A shrewd assessment of financial realities and cool headed planning for the future is critical to keep a balanced view of money in our lives.

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