What makes the world go round? Every one of us would have his or her opinion on this vital question. The answers may differ but if you closely analyze, one thing clearly comes to picture and that is, it is the “Money” which makes the world go round. Money is the center around which the world economy revolves. So it becomes really important that you make your money speak for you. For a happy and a successful life, “Money Management” becomes the key at all levels, whether it is an individual or a corporate.
Earning money is one thing and an important one too. But the story does not end here. The real thing starts from here on. Money Management comes to play once you have money. Expenses are bound to happen. But how you take care of the money that is left with you should be your focus area. Take care of your money and the money will take care of you. Money left as such with you is equivalent to sleeping money and anyone who is sleeping cannot take care of the other.
So once you realize and accept the fact that it is money which makes the world go round, at the end of the day it becomes your responsibility to manage the money with you so that you can earn and grow your money. But it may happen at time that due to one reason or the other you may end up totally forgetting to manage your money. Either it is left over in your bank account or left in your cash box. The end result is invariably the same that is “Your money will be sleeping”. You would be losing the opportunity to grow your money. On the contrary the money which is kept in the bank account or in the cash box loses its value. The inflation effect is primary in reducing its value.
Example: Why to Save Money?
Let us take an example to illustrate and bring out the importance of investing and managing your money. Consider Mr. X and Mr. Y in this scenario. Both of these gentlemen had a healthy cash portfolio with themselves. Suppose both of them had $100 with them. Mr. X decided to keep this cash in the box. But Mr. Y decided to purchase gold with this cash money of $100. Now take a time span of five years. After five years the $100 with Mr. X would remain as such. Actually the worth of these 100 dollars would have been depreciated, so actually the value of this $100 will be much less than it was five years before. On the other hand, Mr. Y who had purchased gold, now has added on his $100 to grow it to the present value of gold. So Mr. Y has taken care of his money and has become cash rich. Today if he even sells this gold he would get cash equal to the present value of gold which is certainly very much higher than its value five years back.
The above example clearly brings out the importance of managing money kept in your account or held with you. The medium of investments are diverse and can be any or many depending upon your profile and requirements. But keeping your money idle, you are just wasting your money. There are different options available where you can invest your money. You can invest in gold, put your money in stock market, buy bonds or commodity stock, invest in real estate, have a fixed deposit and can use other money management techniques. With all these methods you can make your money work for you and thus earn for you.
So, is your money sleeping? And if it is so, then it’s time for you to decide and start on making your money work for you. Money kept in the form of cash keeps on depreciating in value. An intelligent investment strategy can bring life to this money and can make this money grow. So do not forget this vital source of earning as money kept idle is equal to money wastage. Being cash rich is good but remaining cash rich is important and should be your goal. Money is certainly among the things that make the world go round and if you take the right decisions as far as money management is concerned then it is most likely going to take you to places. So start taking care of your cash money to remain cash rich and “money-wise” wise.