I mentioned in my last blog post about all my half-read books. Well I have started to get through them (strange how a public confession of a failing prompts you into action). One of the books I have now complete is The Minute Millionaire.
In essence this book is about how the money you make is a barometer of the value you are adding to the people round you (assuming you are accumulating your wealth “ethically”). There are lots of great ideas ion the book and what follows is based one of the more interesting sections- Seven Money Skills of extremely prosperous people. These are:
Moneyskill #1 – Value – they value each pound/dollar like a money seed and recognise that even a very small amount can grow into a fortune given time and the right investment choices
Moneyskill #2 – Control – they control their money down to the penny, eg always looking for the best value, balancing their books (eg doing bank reconciliations!), taking advantages of discounts, checking bills for errors etc
Moneyskill #3 – Save – they enjoy saving money- at least 10% of what they earn.
Moneyskill #4 – Invest – they have a systems for investing money, eg using an emergency “bucket” for 3 months’ worth of living expenses. As that bucket overflows it goes into other buckets with different levels of investment risk.
Moneyskill #5 – Earn – they have multiple steams of income, eg rental income, business profits, salary, interest, dividends.
Moneyskill #6 – Shield – they protect themselves with trusts, limited liability companies/partnership, insurances etc
Moneyskill #7 – Share it – If the above creates a rather unpleasant image, this last one will dispel it. They are also very generous, donating at least 10% of their income. Money multiplies fastest when it is divided.
If you scored yourself 1 to 10 on how well you are doing on each of these measures, what would your score be? My score was 45 out of a possible 70 (an average of 6.4 out of 10).
Please us know what your score is and whether you think that score matches your overall level of prosperity.