7 Things you should be doing with your money in any economy.

March 15, 2009 by
Filed under: General Budgeting, Retirement, Pensions and Kiwisaver 

It’s all going to hell. Times are tough. You may have to take a forced day off to prevent redundancies.

Ok, what should you do with your money? Where do you put it? How do you save money when you cant even afford your bills now?

Well, one of the books I read when I was starting out on my moneysaving and investing path, was The Richest Man In Babylon. This book tells a series of tales about a slave in ancient Babylon, who became very wealthy. Each tale relates to a different law of money. The really cool thing is that if you basically handle your money according to these rules – you will be OK.

Now this may be a tough time to change the way you handle your money – but I’m gonna be honest with you – there is never a “good” time to accept that you have been doing things wrong. When we did it – we fought for about two months while we tried to justify to each other why it wasn’t our fault that we were in debt and drowning.

So here are the 7 rules from the Richest Man In Babylon. I suggest reading the book – it’s a classic.

7 Cures for a Lean Purse

FIRST CURE: Start thy purse to fattening
Save 10% of your income
SECOND CURE: Control thy expenditures.
Spend less than you earn. Budget and track  your money.
THIRD CURE: Make thy gold multiply.
Invest: understand compound interest.
FOURTH CURE: Guard thy treasures from loss.
Make sure you are insured.
FIFTH CURE: Make of thy dwelling a profitable investment.
Pay off the mortgage and own your own home – don’t rent forever.
SIXTH CURE: Insure a future income.
Make sure you have some sort of retirement fund.
SEVENTH CURE: Increase thy ability to earn.
No point working for the same salary forever – it is effectively working for less. Upskill and earn more.

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Comments

2 Comments on 7 Things you should be doing with your money in any economy.

  1. Conspirama on Sun, 15th Mar 2009 1:23 pm

    2. 7 Things you should be doing with your money in any economy ……

    It’s all going to hell. Times are tough. You may have to take a forced day off to prevent redundancies. Ok, what should you do with your money? Where do….

  2. Avalon on Sun, 22nd Aug 2010 6:09 pm

    3. Im playing around with Amazon aStore :)

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