MONEY DON.

Money has been deemed the root of evil, but i think the lack of it is the the real cause of evil. When we don’t have this legal tender, we tend to device ways of getting our hands on some. This is one of the most sort after resource in the world. Lusted after by the rich, dreamed of by the poor and desired by all. Having money in our pockets is one thing, making it remain there is another. We have a habit of spending what we don’t have just to impress others.

We create an image of affluence yet our every day life is living from hand to mouth. Trying to impress those who are around us so that they don’t look down upon us nor demean us. I have learned the hard way that there is always a price to pay when you misuse your finances without making a reliable plan. Spending money like there is no tomorrow, only to end up being broke. Most of the times when you have no money you will find out you have fewer friends.

Yet when your pockets are overflowing you have friends in plenty. As my father put it to me, those are who he termed as fair weather friends. They are only with you when times are good but when things go to the dogs you are on your own. Let us leave the side topic alone and get back to the matter at hand. Am sure that most of us are guilty of spending money without a care in the world, with the notion that tomorrow will sort itself out.

I know i have, living for the moment. If only i had learned what i now know, i would probably have saved myself quite a lot. Anyway i got a tip of how to be more wise in my expenditure. Warren Buffet outlines a number of tips on how to better make use of your money:

a) On earning : Never depend on a single income, make investment to create a second income.

b) On spending: If you buy things you do not need, soon you will have to sell things you need.

c) On savings: Do not save what is left after spending, but spend what is left after saving.

d) On taking risk: Never test the depth of a river with both feet.

e)On investment: Do not put all eggs in one basket.

f) On expectations: Honesty is very expensive gift, do not expect it from cheap people.

These are quite simple steps, once you internalize them and are able to follow them, your life will be a bit better and you will make less bad decisions.