What is the Secret to Money?

You might find it hard to believe when you hear just how simple the true secret to money is. That doesn't mean you should pass it by or not give it any thought. The secret to money has 3 parts to it:

Be Aware of Your Wealth

The only value that money has, is what we give to it. It is neither good nor evil, and it is only our own perceptions of money that matter. They say that "money is the root of all evil", but the real Biblical quote is that the "love of money" is what causes the problem. See the difference? If you want to attract wealth into your life, you have to have a healthy attitude towards it.

Some people claim that you can draw money and wealth to you by giving the money you have away, but this is an oversimplification. Its especially a poor idea if you don't have money to spare. Part of the benefits to giving money away is how it effects your attitude, so make sure you do it properly, when you can afford it. Abraham Lincoln once said, "You cannot help the poor by remaining poor yourself."

Also, keep in mind the big picture and focus on your future rather than your current situation. If you give money away, consider how that will improve your future wealth and income rather than how it deprives you of money now.

Start to Save Your Money

Sound obvious? Well, don't go skipping to the next point until you read it. By adding to your savings consistently, it not only increases your wealth but also helps you keep a positive attitude about it. That attitude is what will bring more wealth your way, and that is the real value of saving. So even at the very beginning, you should consider savings as a vital part of a wealth-building investment plan.

The standard recommended amount for regular savings is 10% of your income, but you should save as much as you can afford to.

Compound Interest

Once your savings start to accumulate, you need to make sure your money is working for you. Albert Einstein was right when he said that, "the eighth wonder of the world is compound interest."

With just $1000 in a high yielding fund, you will have more than a million dollars after 10 years just by doubling your money each year. The secret is that you earn interest on interest, and that can add up very quickly.