4 Reasons Why Money Management Is The Best Gift to Yourself
Money management is totally out of my vocabulary until one day it hit me…
I was sitting at a meeting table borrowing money from a reputable bank for the company that I was working with.
And out of curiosity, one of these bankers seated across the table asked me this HUGE question and I quote “when do you want to stop working?”
I was 40 years old at that time working as an ex-pat involved in business startups in Vietnam and Thailand.
I know sometimes it just feels good to treat ourselves especially if you are expecting a yearly bonus to bring your family for a vacation or maybe browsing the internet looking for a nice dress under $100.
Guilty? Yes, I am absolutely guilty without paying attention to how I manage my personal finances during those early days.
4 Reasons Why Money Management Is The Best Gift to Yourself
1. Money management can help you spend quality time with your children
I know that time flies and if you have kids they grow up so fast and before you knew it they will also have their family of their own.
It seems like yesterday that I hold my daughter in my arms. She is now 20 years old and left home for college. It was hard to say goodbye but if you hone in your life skills and do money management this will help you in the future to spend quality time with your children.
Creating a habit of living within our means and tracking our finances, we were able to prepare for the future.
One year of being an empty nester we were able to see our daughter again and arrange a trip to Venice together and I was able to spend summer with her for two months in NYC.
When they say money management, think about your kids!
2. Money management can help you decide when to stop working
When that banker dropped the question “when do you want to stop working?”, my jaw freezes because I can’t even answer this simple question.
I don’t know about you, but I might have gone a bit crazy with overspending and there was nothing under my name except debts – it was really NOT fun!
Debt accumulation happens simply by purchasing stuff so better to re-think before you spend your money. When you start telling your money where to go you will start shaping an answer when to stop working.
My husband and I LOVE using this simple worksheet that helps us to track the ins and outs of our money. Nothing fancy just a simple excel worksheet but it really works for us until now.
I know that money is a very sensitive issue to talk about but couples should talk about the status of their finances so they can plan and work together on their future retirement planning.
Eight years ago, I quit my 8-5 job and I started my business with US$100 capital using my laptop. If you want to retire without solely depending on social security or pension here are the big questions to ask before you retire.
3. Money management equals happy home
My husband and I solemnly made a vow to each other that we will do what it takes to get out of debt and never fight about money.
After we paid off our debts we keep a joint account and NEVER fight about it. Marriage is all about compromises and it goes hand in hand with how you both manage your money.
I know some couples think that combining money with your spouse is a complete recipe for marriage disaster. Understand that a happy home equals happy marriage, career, life, business, health, and success.
So managing your money properly will give you a stress-free life. And if you guys really want to learn about money management and don’t know where to start check Dave Ramsey’s book the total money makeover.
Another great option to get started is to listen to Dave Ramsey’s Financial Peace Audio – this is a super motivating 13 LIFE changing lessons to start with money management.
4. Money management boost spirituality
Money is good and oftentimes this verse from the bible was misquoted “For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” – 1 Timothy 6:10
Normally we blame our parents or our circumstances of not having any money instead of living on a budget and sticking to our budget.
When I was still in Vietnam and Thailand working, I was so privileged to meet, entertain, and hear the life stories of the most prestigious and successful people in the world from the late President Corazon Aquino up to the richest businessman in the Philippines – Henry Sy Sr upon his death in 2019, his estimated net worth amounted to US$19 billion, making him the 53rd-richest person in the world. Source Wikipedia
With the late President Cory Aquino at Ben Thanh Market – Ho Chi Minh, Vietnam
With the late Henry Sy Sr Dinner at Highlands Prime Steak House – Manila, Philippines
Most successful people that I know whether they follow any form of religious beliefs are being generous to others and they don’t often like the Hollywood-rich type folks especially if they work hard from bottom to top.
Most people earn financial blessings, not because they are lucky, but simply because they work for it and they live well below their income.
Closing Thoughts
Wealthy people are in their great financial position because they manage their money well.
Money management gives you a clear pathway ahead, a record of your net worth as well as your progress so you know exactly where you’re heading.
Aim to live on less than you earn and spend your time improving your life skills to secure your and your family’s future. You won’t regret it.
Also, be grateful and generous to help others!
To recap, here are the 4 reasons why money management is the best gift to yourself.
1. Money management can help you spend quality time with your children.
2. Money management can help you decide when to stop working
3. Money management equals happy home
4. Money management boost spirituality
Other helpful breakthrough tips:
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