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Becoming a good observer and listener is another way of developing a powerful philosophy about money. Chances are you know someone who handles money well and if so, pay attention to what they do. Listen to what they say when they are discussing money issues. It certainly doesn’t mean you do everything they do, but you can glean some helpful tips.

Years ago parents would purchase piggy banks for their children as a way training them to save. However, in most cases, the training did not consist of a strong “why”. Often times the training communicated the message of saving to buy, when a better message would have been save to build. This is why many children are ready to spend their money when they save enough to get what they want. It’s that philosophy they have already acquired. Spending becomes the goal and that philosophy continues into adulthood. Ideally, money is a tool to be used to build for the future. I recommend parents purchase two piggy banks, short-term and long-term. Each time your child receives money, a percentage is placed in the short and long-term savings. Of course, if you practice tithing then you should require them to tithe as well. Children who develop successful habits in handling money greatly increase their chances of managing money successfully as an adult.

Money is more about the mind than it is about the math. That is, financial success is more about mastering the mental game of money than it is about understanding the numbers. The math of personal finance is simple, spend less than you earn. It’s controlling your habits and emotions that are difficult. A major impediment to properly managing money is that most people believe they don’t earn enough money. Some people fail to understand that income usually increases with time and performance. And what’s interesting is that it doesn’t matter whether they’re on the lower or higher end of the income ladder. For most people, it doesn’t matter how much income they earn it will never be enough. Unfortunately, most people live for today.