Money 101: (required, no prerequisites)

Money motivates us whether we like it or not. Most of us go to college so we can get higher paying jobs. Even art majors need money to survive. Money will always be a big part of our lives.

If money is so important. Why don't we have better money management skills? Think back on your illustrious academic career. All the way from college to kindergarten. What have you learned about money in school? How to write a check? Shopping online safely?

If you had similar experiences with money, you can see that we need basic financial education. It's a need not met by our school system at any level. This is why "The 5 Habits of Money" was created. To help fill the gap in our financial education. The 5 Habits of Money teaches the basics of money. Although The 5 Habits are simple, there is nothing basic about how far you can go. These same habits have made ordinary people, extraordinarily wealthy.

Do you have a job, a business, or any source of income? Congratulations. You are practicing The First Habit of Money: Hustle. Make money anyway you can. The Second Habit of Money is "financial diet." It is summed up in one equation: INCOME=EXPENSES. Simple? Yes. But how many people are in debt because they don't practice this habit?

The Third Habit of Money is "Pay Yourself." When you spend money, everyone else gets paid. Why shouldn't you? After all, you earned it! Make sure you Pay Yourself at least 10% of what you make.

Once you have some money it's time to "Pimp Your Dollars!" You work hard for your money. Make money work just as hard for you. This is The Fourth Habit of Money. Go ahead slap your money around. You won't get in trouble. If you don't like what your money is earning in that savings account. Smack! Make it work harder somewhere else. This is where furthering your financial education comes in. Rich people aren't smarter than you. They just know something you don't.

The Fifth Habit is C.Y.A. or Cover Your Ass...ets. Protect your money from liability and taxes. The most common tool is using insurance. You probably have some form of insurance right now.

Out of The 5 Habits of Money, how many are you practicing now?

Eugene Saw is the speaker and author of The 5 Habits of Money. To learn more contact him @ 415.254.6185 eugene@5habitsofmoney.com