Manage Money Well or the Lack of Money will Manage You

Friday, Sep 08 2017 12:56 PM

Any aspiring affluent desires to build wealth. Each successful stage is the application of a certain set of Habits, Disciplines, and Values. On one hand, the individual may be constrained by his resources and acts in a limited fashion. On the other hand, another has access to resources, yet chooses to be prudent. Although both parties appear to behave similarly, they are looking at a completely different point on the distant time horizon. In this piece, we will explore why prudence equates to good stewards by choice.

Keep Gunpowder Dry

During early warfare, troops were trained to keep their gunpowder dry to reduce response time in combat. As with ready capital, prudent individuals place measures to have a portion of their wealth “dry”. Are you ready and mobile to ride the waves of opportunity or flee from economic tsunamis? One that understands wealth, sees that risk and potential often walk a fine line. Stewards adopt the focus of accessibility of wealth. Storing them in institutions is only as secure as the country’s stability. Hence a private vault is often an easy sound and secure option.

Health is the First Wealth

Health is a slippery slope as one puts on the years. Any good steward advocates the embodiment of  “Health is the first Wealth" maxim. Unexpected illnesses in a family unit usually impact portfolio due to unexpected medical costs. It is not difficult to imagine how health can directly impact wealth. The frugal lifestyle applies restraint and discipline. Much of life is about awareness and abstinence from unhealthy lifestyle indulgence. 

Keep Good Company

All relationships influence life’s path in big and small ways. If the choices are wise, some relationships evolve into an alliance with fortitude and all parties are in alignment with the same purpose. Unfortunate choices will strain wealth. At times, firm decisions are required to manage the situation.

The wise steward seeks out abled individuals for the information and support they need. An iron clad cartel often serves as a network of resources. Often, the frugal audit their time they spend in relationships, whom they spend it with and what they do while spending it.

 

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Vernon Lim