5 Money Principles Every Person Must Know - Part 2

Principle Number 2: Give

While there is a popular joke which states that it is always better to give than to receive...especially if you are a boxer.Sounds crazy right?

The act of giving is indispensable in achieving financial freedom. Building a fortune doesn't mean hoarding the money you accumulate, but you need to share them. This act of sharing whatever you received is an act of faith to the One who is the Giver all all. And the more you share, the more you receive and the best thing is that they come in a hundredfold.

Giving makes your life in greater abundance. For instance, the sea of Galilee and the Dead Sea. The former receives water from streams flowing down from the mountains and it empties itself to the Dead Sea through the Jordan River while the latter being located below sea level receives all the water without emptying them. The former is teamed with all kinds of fishes and is rich in life while the latter cannot provide an environment for life to exist. Because of its very salty water, only a certain of bacteria can thrive.

What does this imply?

Give whatever blessings you receive, and you will have more and live life abundantly; or hoard whatever you have, always receive and never give and become barren as the Dead Sea.

Life has only a meaning once it is shared. As Winston Churchill said "We make a living by what we get. We make life by what we give." Life can be more meaningful once we start sharing it not only with our material possessions but ourselves as well.

In conclusion, I want to share this very touching quote from Kahlil Gibran.

"You give but a little when you give of your possessions. It is only when you give of yourselves when you truly give."

On the next post, we will touch on the third principle so stay tuned.

5 Money Principles Every Person Must Know - Part 1

Have you tried going home from shopping and wondered if you have been pick pocketed?  Or have you experienced running out of your month's salary and the next paycheck is still a long way to go?

The fact is that money is like driving a car. If you know the principles behind it, it will take you anywhere. However if you don't understand the precepts underlying it, it will lead you to disaster. Even rich people who failed to understand these principles ended a miserable life filled with debts. So here are very simple yet misunderstood principles on money.

Principle Number 1: Save

Yes, this is the first and the core of the money principles. Financial experts often say, "It doesn't matter how much money you make, what matters is how much money you save."

Let us take a case study of the once a very wealthy person in the US - Mike Tyson.

He was a boxing champion, a legendary figure who has earned 400 million dollars throughout his career. But what happened? He filed for a bankruptcy. The New York Times said that he owed 23 million dollars in debts.

Why this happened? The answer is very simple. Tyson's expenses exceeded beyond his income. He has spent hundreds of millions on luxurious cars, jewelries, gambling and other vices. He hadn't save even a single dollar for his future.

So are you tired because you are just earning just few dollars? You don't have to worry, as long as you are living within your means, you are in the right path. Just save and continue on saving because no matter  how small the amount is, it will become a great wealth in the right time. Always remember that an single drop can be a part of a great ocean.