Understand Money – How To Manage Money
It always amazed me growing up how much my dad knew about money and finances. Even to this day when he is nearing his long awaited retirement, he knows a great deal more than almost every individual I've met. He is still planning and evaluating his portfolio, continually changing and always altering. He continues to make regular deposits to his retirement fund and has never missed or is late with paying his bills. My Father understands how to manage money.
Most of me realizes that my interest in proper money management derives from his passion for it. When I was a teenager I would constantly ask questions about his past. One main question I had for him was how he would know when to change certain investments from medium risk to high risk and vise versa. Prior to the stock crash in 1987 he totally avoided losing his money by adjusting his portfolio a six months before everything hit the fan. He did so in early 2000 and again before the current crash. When thousands of people lost half of their savings and forced to sell their homes he was able to protect all of his portfolio and eliminate his mortgage in 15 years.
Is it a fluke that my father has managed to avoid losing money during these difficult times? My Father isn't an investment guru or a banker nor does he make a living as a stock broker. The amazing thing is his career for close to 4 decades was as a manager for a retail store. Why has he always known when to change everything and at the right time? He has either been going to the only fortune teller that doesn't lie or he understands finances more than the average Joe. I'm certain it's the later.
His financial interests began when he worked as a teller at a bank when he was a teenager. The job required him to read all about how to manage money so he could easily answer all of the questions that customers might have. He only worked there for about 5 years before changing careers. The things he learned in that short period of time he ended up taking with him until present day. He has made a few mistakes along the way but due to his knowledge, he understood ways to correct those misadventures and minimize the damages.
After the point that he switched careers over 40 years ago, I don't think he has read a book on finances. Having said that I'm certain he read so much more in those five years than most people read in 20 years. The beauty about personal finance basics is that they remain fairly constant. All of the simple formula's involved with finances or inflation or the dividends have remained the same for ages. The more you read the more you will understand how to manage money.
Knowledge is everything. By reading as much as possible or even just a tiny bit you will better understand how to manage money. If you spend a couple hours a week informing yourself with sources like this blog and by reading some recommended books you will understand the investment trends and will avoid the devastating losses. There are very few things more important than making sure your portfolio is always in order. A little knowledge is a dangerous thing. The more you have the more you will save.
Check out these books. I would highly recommend them to apply to your financial life.
"The Wealthy Barber" - Written By: David Chilton
"Automatic Wealth" - Written By: Michael Masterson
"Think and Grow Rich" - Written By: Napoleon Hill
"The Automatic Millionaire" - Written By: David Bach
Happy Reading!
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