Understand Money - How To Manage Money

When I was young I always found it interesting how much my dad knew about money and finances. Even to this day when he is getting closer to his golden years, he understands a great deal more than nearly every person that I have met. He still plans and evaluates his portfolio, continually changing and always altering. He continues to make regular deposits to his retirement fund and has never missed or is tardy with paying his bills. My Father knows how to manage money.

A little bit of me thinks that my knowledge in proper money management stems from his keen interest for it. When I was a child I would constantly probe him for information from his past. I asked him how he would know the right time to move certain investments from medium risk to high risk or vise versa. Before the market crash in 1987 he completely avoided a loss by changing his portfolio a several months before everything went downhill. He did the same thing in early 2000 and one more time before this most recent crash. When countless amounts of people lost most of their savings and forced to sell their homes he managed to protect all of his portfolio and eliminate his mortgage and keep his head well above water.

Is it a fluke that my dad has always avoided losing close to nothing during these tough times? He isn't an investment guru or a banker nor does he work as a stock broker. The amazing thing is his career for close to 4 decades was as a manager at a department store. Why has he always understood when to make changes and at the right time? He has either been seeing the only fortune teller that isn't lying or he knows more than the average person. I'm guessing the later.

My father's keen interest with money began when he worked as a teller at a bank when he graduated high school. The job required him to read all about how to manage money so he could correctly answer all of the questions his customers might have. He only worked there for about five years before changing careers. The things he learned in that limited period of time he ended up taking with him for the rest of his life. He has made a few errors since then but because of what he knew, he knew ways to fix those mistakes and limit the damages.

Since the time that he changed careers over 40 years ago, I can't recall a time where he has picked up anything to do with finances. BUT I'm certain he read more in that half decade than most people read in two decades. The beauty about personal finance basics is that they really don't change. All of the simple formula's involved with finances or inflation or the dividends have remained as they were for a long time and will stay the same. The more reading you do the more you will know how to manage money.

Knowledge is very important. If you read as much as you can or even just a little you will better understand how to manage money. If you spend a few short hours each week informing yourself with this blog and by reading some excellent books you will understand the investment trends and will avoid the crippling losses. There are very few things more important than making sure your portfolio is always in order. A little knowledge is a dangerous thing. The more you have the more you will save.

Here are a few books I would recommend you read.

"The Wealthy Barber" - Written By: David Chilton

"Automatic Wealth" - Written By: Michael Masterson

"Think and Grow Rich" - Written By: Napoleon Hill

"The Automatic Millionaire" - Written By: David Bach

Happy Reading!

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