It’s incredible how so many people constantly struggle to have more money and yet never bother to find out how to go about it. They never invest even one minute of their time in doing a little bit of research to understand how money works. Why does it have value? How do those who have it manage to get it and keep themselves from losing it? This information is fundamental and vitally important if you want to have more money and hang on to it.
If you want to get in shape and lose weight, you have to know how your body works in relation to your eating habits. You also have to know how exercise affects your body. This will tell you what kind of diet you need to follow and what kind of exercises you need to do in order to achieve your fitness and weight-loss goals.
Do you want to have money? Then you should at least understand how the natural flow of money works and start applying the principles to your life and to all the money that passes through your hands. There’s a formula that most people who have money follow to make the natural flow of money work for them. Money has to circulate in a very specific direction:
MAKE, SAVE, INVEST, ENJOY AND GIVE.
- Make it: This step is basically how money gets into your hands in the first place. It may be through your job, your business or, in some cases, even a gift or an inheritance.
- Save it: In this step, you must save a certain percentage of all the money you make. Your goal should be to save at least 10 percent. (Note: Saving is saving only if the money is used for emergencies, continuing education or investments. If you use it for anything else, you’re just spending it in slow motion!)
- Invest it: Once you’ve succeeded in saving money, you can start investing it. The only rule here is that the money must be invested with the intention of making more money, whether through a business, buying and selling for profit, purchasing stocks and bonds, etc.
- Enjoy it: Once you reach this step, you have the freedom to spend or enjoy all the money generated from your investments. You aren’t obligated to spend all of it, but you are obligated to enjoy it. After all, isn’t this the main reason we want more money?
- Give it away: This is the last step in the natural flow of money. It suggests giving your money away because, like or it not, you’ll have to give it away sooner or later.
Although these steps sound simple, most people don’t follow them. They may make some attempts and approximations, but generally, they make a lot of mistakes. For example, there are people who make money (step 1) and immediately start enjoying it (step 4), completely skipping the two middle steps. Many others make it (step 1) and then start giving it away (step 5) through donations, collaborations, charity, hand-outs or other forms of assistance. The few who save it often spend it without investing it first. Examine your own financial life. If you don’t have the money you want, it’s a safe bet that you don’t understand the natural flow of money or haven’t been applying the underlying principles.