Your Personal Money Management Balance Sheet

This tends to reflect your personality traits as assets and liabilities. Of course personal money management should not be mirroring your emotions and indulgences to this extent. However this is the world we now live in where credit and immediate gratifications are at the centre of our daily lives.

It's hard to switch off as it is fuelled by government, media, advertising and financial institutions. As I write this page, western countries are seeing the repercussions of years of greed, too many self indulgences and wrong thinking.

Peace of mind is a state of being that many see as a luxury and could never achieve for themselves. As long as you have 'bad' debt - ie debt due to purchasing depreciating assets eg. cars, motorbikes, shoes, clothes etc - and are finding it difficult or impossible to pay back, peace of mind will be a distant dream.

Efficient money management is achievable by economising and being thrifty and you don't have to notice it, eg. changing energy supplier. If you are in debt then you must perceive the situation as a learning curve and one which you will look back on and smile in the months and years to come.

You should remember that....

in every failure type situation there is the seed of a successful one waiting to grow.

Managing your income/expenditure and savings/investments is the most important part of personal money management. It is not difficult providing you apply yourself and don't keep putting it off.

Face that fear!

Most people need to decrease their expenses, increase their income and find an investment or two to put their surplus cash into. Why not start with a personal budget plan.

Personal money management is now being taught in schools which is good, however I suspect that the curriculum is geared towards putting your money in the bank, or latest government inspired investment. There certainly won't be any information about investing offshore since governments find it more difficult to keep tabs on your money. Similarly, there won't be any information on how kids make money. because the young need to be 'educated' in the right way so they perpetuate the existing system of debt money.

Your conventional life has probably moved on. You will not spend your whole life in one job, bank with the same bank, or even want to work 40 plus hours per week, only to collect a very poor pension when you retire. There is so much more to life and as the human race becomes more conscious of it, as a creative being, you will want to create part of it for yourself.

Personal money management means something different to the wealthy. To understand the difference you need to look inside yourself and decide what you want to achieve in your life ie. you need goals.

These goals don't have to be big ones but you do need them. Many people aren't prepared to manage and take responsibility for themselves, never mind manage their money. People are buffeted by circumstances, other peoples' opinions and gratifications.

With goals you have set your own course and are less likely to be influenced by other people's wants and needs.

The wealthy have educated themselves about money. They use money as a tool, preferably other peoples' money (OPM) ie. 0% credit cards, loans, mortgages etc. to grow wealth using appreciating assets, eg. property and investments. This is called 'good' debt, I have already mentioned 'bad' debt. The majority of people have 'bad' debt. You need to get rid of this type of debt, and stop following the crowd if you are to become wealthy!

You need to become educated just like the wealthy. A good place to start with your financial education is this site. There are more than enough tools, advice and investments to not only help you get started but actually grow your wealth. I wish you well!

return from personal money management to ultimate wealth