Thursday, Sep 29, 2022

Working It Out: 7 indispensable rules of money mastery

Everything we know about money is what we learnt ourselves or from people around us.

money management, how to make money, making money, success mantras, success tips, tips to make money, tips to save money, money saving Remember, money does not make you happy, but it definitely makes you comfortable. (Source: Thinkstock Images)

“Never blame God for your money problems. God did not invent money.”

Anyone who says money is not important either has a lot of it, or is a liar. It is one of those subjects that people have little idea about how to master. We have been taught subjects like geography, physics, biology, mathematics, computers, accounting, but nobody ever taught us money.

Everything we know about money is what we learnt ourselves or from people around us. For most of the people, they did not know any smart role models or topic experts on the subject of money. They end up learning it from people who have money issues just like them.

I read hundreds of books on the subject of money and use the knowledge to create a couple of businesses. Let me share certain principles I learnt about this indispensable subject called money.

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1. Money is never enough: You will meet a lot of rich people who do not think themselves to be rich. This clearly proves the point that money is never enough. Once you have more, you start meeting the people who have equal or more money than you. Thereafter, you again feel the need to have more. So, perish the thought that one day, you will have enough and you will be happy. Your current salary was once your dream salary but now you have become used to it. Money raises your standard of living and then you seek new standards.

2. Money does not make you happy, but it makes you comfortable: Money does not make you happy, but it surely makes you comfortable. And comfort may not be sufficient to make you happy, but it is a necessary pre-requisite for being happy. It is difficult to be happy when you are behind on your bills. It is almost impossible to be happy when you have more month left at the end of the salary rather than more salary at the end of month. So, make sure you learn to earn enough money to make yourself feel comfortable. Also, remember that you will enjoy your money most if you make it by doing what you love to do. The way you spend your time determines how you feel about your money.

3. Money is a choice: No matter how hard it hits you, the truth is that the money you earn is what you have decided to earn. If you think your company does not pay you enough, then remember that you chose the company. If your business does not give enough profit, remember that you chose the business. If your industry offers limited money opportunity, then remember you chose the industry. If you want to change the amount of money you are making, then learn to change your choices. I have changed my industry multiple times to make the most of every opportunity that came my way.


4. Money is a reflection of the skill you have: Always remember that more skilful you are, more you will be valued in the marketplace. If you develop the skills that sell then you will never be underpaid by the market. If your employers do not pay you well, their competition will. What are the most relevant skills for the next five years? I can name a few broad ones, you can pick up the ones you feel can catapult you in your professional life.

Few relevant skills are – public speaking, business modelling, valuation, designing, digital enablement, counselling, coaching and coding. More the skills in your kitty, more the job security you have.

Read all the Working It Out columns here.

5. Money is a result of system you build or join: American entrepreneur, author and motivational speaker Jim Rohn once said, “Profits are better than wages”, and I think he was right. Money that comes into your life comes in one of the six forms – salary, profit, fee, commission, rent or interest. Salary always has an upper limit, while other five sources can go as high as the customer is willing to pay. Also remember, that salary income grows at 10-20 per cent per annum on average, while other forms of income can also grow geometrically. This does not mean that you should leave your jobs. All I am suggesting is learn to build multiple streams of passive income. Active income is the slowest form of making money.


6. Master the art of delegation: You will never be rich until you master the art of delegation. Getting rich is a full-time job. Your supreme duty is to maximise your financial return on the time you have. Find and hire people who will do what you should not do so that you can spend your time doing what only you can do. If you ever observe an ultra-wealthy person, you will realise that they focus only on what they do best.

7. Money is a result of the service you give: More the number of people you serve, greater are your chances of making more money. Your responsibility is to find what you love to do and then find the people who will pay you to do it. If you are experiencing money issues, then ask yourself what problems are you solving for the market. A billionaire always serves more people than a millionaire does through his product or services. By service, I mean business utility not charity.

Follow these seven rules of money mastery and you will see how your bank balance will start moving north. Master money or it will make you its slave.

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First published on: 25-04-2016 at 07:54:51 pm
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