Money is an important tool in life, and it can be profitable to take the time to read the “instruction manual”. If you spend your money incorrectly, it can be a source of a lot of frustration. You may end up spending an unnecessary amount of time and energy without seeing results. But – if you manage to use the money correctly, you can experience less stress, greater freedom, and increased everyday happiness. Mastering money is not only about purely practical things – but it is often thoughts and attitudes in our relationship to money that perhaps affect the result the most.
1 – MONEY IS A RESULT OF WHAT YOU DO
Whether you run your own company or are employed, it is the time you give and how you provide service that is the reason why money comes into your account. If you want to increase your income, you should increase your own value (more education, self-development, and practice/experience), so that what you deliver also increases in price. Remember! Money is not a cause, money is only a result of what you do.
2 – MONEY IN THE BANK DOES NOT AUTOMATICALLY MEAN THAT YOU WILL BE HAPPY
There are rich people who are deeply unhappy and there are poor people who are satisfied with life. Money itself cannot make you happy, but it is how you spend the money that can increase your level of happiness. You can buy yourself wonderful experiences, a pet, get an education, buy a place to live, and create security for you and your family and the like, which in turn can increase your quality of life and everyday happiness.
3 – MONEY NEEDS TO CIRCULATE
For society to go around, it is important that we spend money. That is how we create jobs and welfare. But – it is also important that you keep some of the money yourself, and that you let your money move from the savings bank to other savings products that give you interest on your money. That way, your money is useful until you need it for something else important.
4 – MAKING MORE MONEY WILL NOT NECESSARILY MAKE YOU RICHER
If one has not learned how to handle money in an optimal way, increased income will mean little to the “piggy bank”. Many people tend to use what they have available on their account anyway – whether it’s a little or a lot. If you are in the habit of spending everything you earn each month, the same will probably happen even if your salary increases. First of all, work on your own money habits and get control of your costs before you focus on earning more.
5 – COMPOUND INTEREST IS ONE OF THE MOST POWERFUL THINGS IN THE UNIVERSE
Many people have a relationship with percentages when shopping for sales. It should preferably be 50-80% off if we are to feel that we have made a bargain. When we shop on sale, we are not satisfied with a 5-10% discount. It’s just a small change… Because of this relationship to percentages, many people underestimate what 5-10% extra interest on your savings can mean in the long run. Anyone who understands the value of interest and time will be able to make the money multiply on an increasingly large scale. Imagine the effect if you save regularly and place the money where you get good interest. If you save a thousand every month for 40 years (and get 10% interest), then the amount will be a staggering 5,596,285 in 40 years! A nice pension 🙂 Now it’s true that not everyone has 40 years ahead of them, or the opportunity to save a thousand kroner every month for a pension, and there is also no guarantee of the return you get, but the point is: The better interest you get, the more you can get out of your money over time.