Dear Reader: “Money don’t grow on tree.” It can grow when you save and invest wisely.

To understand how money work is to first know the following below:

ü  KNOW  YOUR CURRENT FINANCIAL SITUATION

o   Educate yourself about the struggle you and/or your family are in or facing right now.

ü  KNOW  YOUR INCOME (S) AND EXPENSE (S)

o   Take note of how much money you earn while working/selling and who do you owe?

ü  PAY  YOURSELF OR YOUR FAMILY FIRST

o   When you get paid, deposit money into a savings or investment account.

ü  FINDING MONEY TO SAVE OR INVEST

o   Look for ways to cut back on your expense (s). Don’t buy things you don’t “need.”

TWO WAYS TO MAKE MONEY

1.     You Work For Money:

o   Someone pays you to work for them—you are building someone’s dream.

o   You have your own business—you are building your own dream.

2.     Your Money Works For You:

o   You take your money, and you save or invest it—you are a winner.

TWO WAYS YOUR MONEY CAN WORK FOR YOU—MAKING MONEY GROW:

§  SAVING – Your Money Earns Money

o   Your money goes to work—earning a steady paycheck.

§  For example, you loan your (saved) money to someone for a period of time. That person agreed to pay your money back plus “interest.” Or, if you buy share/stock in a company that pays “dividends” to shareholders.

§  INVESTING – You Buy Something With Your Money That Could Increase In Value

o   You become an owner/investor of something that you hope increases in value over time. When you need your money back, you sell it, hoping someone else will pay you more for it.

§  For instance, you buy a piece of land today that will eventually increase in value in the future as more businesses or people move around the land. You decide to sell the land in five, ten, or twenty years. Fortunately, someone will buy it from you for a lot more money than you paid. Sometimes, your money can do both at the same time—earn a steady paycheck and increase in value.

 Thanks. We hope that you’ve found this money advice helpful. Note, we’ve only covered the basics, and there’s a lot more to learn about money, especially saving and investing.