The Starving
Artist Guide To Financial Planning
1. Introduction
2.
The Money Game
3.
Money Myth 1
4.
Money Myth 2
5.
Money Myth 3
6. What is Money?
7.
The Money Can
Can't
Money. Money, money, money. What is money? Webster defines
money as: n. gold, silver, or other metal in pieces of convenient form stamped
by public authority and issued as a medium of exchange and measure of value.
Currency in paper form, as government and bank notes. Any circulating medium of
exchange, including coins, paper money, and demand deposits. Any article or
substance used as a medium of exchange, measure of wealth, or means of payment.
Okay, so that's the technical definition of money. But what does it really mean?
For the purposes of this chapter, we'll define money as: Any agreed circulating
medium of exchange, measure of wealth, or means of payment, that you value
enough to go to work for you, taking advantage of both time and growth.
Review the definition carefully, because in it is the foundation for financial
success. Let's break it down:
"that you value enough to go to work for you".
To achieve any sort of wealth, you must get your money to work for you. You have
to get your money to produce more money before you can consider anything else.
How do you do that? You start saving. You put your money away, so that it can
accrue interest and produce more money. What a concept. Now let's look at the
second part:
"taking advantage of both time and growth".
You must allow enough time for your money to grow. It doesn't happen overnight.
Again, think of the tree analogy. Put these elements together, and you've
created the formula for success. If you learn nothing else from this website,
but you understand this simple concept, then you've learned enough to succeed.
Money making money, growing over time. It's that simple.
Now for the hard part. Do you value money enough to go to work for you? Or do
you only see it as a means to buy "stuff"? You need to think long and hard about
this. Because if you don't value money enough to work for you, then you'll never
achieve any real wealth or financial security. You may accumulate a lot of
"stuff", but you will never be wealthy. Remember: The one who dies with the most
toys, but has nothing else to show for it, loses.
Do you have the patience to take advantage of letting your money grow over time?Or are you the kind of person that wants everything now? It's important to know
this about yourself, because this isn't a game of instant gratification. Nothing
of any value is gained overnight.
Next:
The Money Can
Can't
Related ARTrepreneur Content:
|
