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.