Money and More About Money

Save Money Spend Smarter

Money is no different than any of other resource. You want it to work for you; to bring gain—prosperity. Putting money to work is like playing a game of chess or even waging a winning war. You will face challenges to your purpose—challengers you can defeat if you plan and prepare properly. As in war or chess, achieving prosperity is based on strategy.

Phase one of your strategy starts with an inventory: How much money do you have? What are you sources of income? How reliable are they? Armed with that knowledge, evaluate the claims on your money. Many of these will be legitimate and necessary, but some are not—these are the enemy—determine to eliminate the wasteful expenditures. Now, develop a spending plan that leaves you some excess funds. Save this money. (This is a budget. It’s a major element of your strategy.) Making a plan and staying with it will take you a long way towards the victory of prosperity.

The second phase of your strategy is to go beyond saving; start making your money work for you. There are many ways to do this and investing is the basis for all of them. Consider—stocks, bonds, loans with interest, new businesses, etc. all require investment and can yield a return. Your challenge finding investments you can afford that will yield you profit. Research (reconnaissance) is required. Some people hire professionals for advice. Others educate themselves in the field. Investments that have dollars winning more dollars are what you are looking for.

A word of caution: Rarely is it wise to risk all your resources in one endeavor. And, it’s never wise to be impatient. You control your money, but in the battle for prosperity, a number of forces are arrayed against you: Vagaries of the market, an unstable economy—why your own extremely good or bad mood can influence your decisions and your yield. Also, never fall in love with an investment. You are involved in a battle, not a romance.

Be aware—there will be losses. Learn from these, as well as from your victories. Remain involved with your investments. Continually seek more financial education. Strive to develop an instinct that tells you when to sacrifice, reinforce, or leave well enough alone. Plan ahead. As in the chess game or in war you need to think about the moves your adversary may make. Give yourself options. —What are the possibilities for your next move? And, the move after that? And after that? You are involved in a campaign, not a foray. The victors in this battle for prosperity marshal their resources, plan their tactics, and re-evaluate their strategy from time to time.