The first time when I heard this, I was blown away! That makes so much sense, isn’t it? I am not rich because I do not have the correct money habits. And once I learnt the correct money habits, I start to gather money towards my riches.

Why was I (including many people in the world) poor? Simple! During our academic schooling, we are taught subjects like English, Mathematics, Science, History, Geography, Literatures, Arts, Sports, etc. What about Money? Oh… the school has “forgotten” to teach us Money 101? So, we end up learning about Money in the real world. That is, working for someone for the rest of our life and making enough money to pay the bills at the end of the month. And we hope that when we are old, we still have enough money to retire. (Sadly, most people don’t)

So, what are various unsupportive money habits?

  1. spend a lot of money and do not save enough
  2. spend on the “wrong” things
  3. save a lot of money and do not spend enough

The first bad habit is easy to understand especially if you are a SPENDER rather than a SAVER. Most poor people remains poor by spending whatever they earn. If they earn $2000 a month, they will spend $2000. If the company gives an increment of $300, they will spend $2300 a month. Worse still, many will spend future money by over-charging to the credit card. When they cannot pay the credit card bill the next month, they will end up with a credit card debt that eats into their earnings even further.

The second bad habit is to spend money on the wrong things. There is really nothing wrong with spending money. The problem lies with WHAT you spend your money on. Did you spend on things that earn you more money or did you spend on things that take away more of your money? For example if you spend money on buying a property that earns you more money by giving you more rental money. That is called an asset. If you spend money on a sports car just to drive around and show off to some friends, I am sorry to say that that cannot be considered a good buy. Well unless you rent the sports car to someone to generate more money for yourself.

The third bad habit is to save a lot of money and do not spend enough. This habit is rampant in the SAVER group of people. They simply hold on to the money they earn and save it up and hope it is good enough failing to see that saving money only doesn’t allow you to grow money. This is especially true with the meager interest rate currently paid out by banks. These people feels that they have to save for a rainy day and guess what? When you keep thinking of rainy days, you will get more of rainy days and there goes your money you earned and saved. This group of people also fail to see that one benefit of having more money is to allow oneself to enjoy the money. When you do not enjoy the money you make, it becomes even harder to make more money.

The key here is balance.

You should have a money management system that allows you to spend your money to enjoy yet at the same time save for growth.

Today, I can teach you how to make $1,000,000 a month but if you just spend all of the $1,000,000, you are getting nowhere. You will be worse off than someone who just earns $10,000 and get to save $5,000.

Why Common-Sense Money Management Fail?

There are 2 common ways to manage money.

First way is the ONE bank account system. When the paycheck comes in, you pay everything else except yourself. That is, you pay the car loan, the house loan, the insurance, the utilities, the credit card bills, except yourself. If there are anything left over, that will be called savings. But the problem is, there is always nothing left.

No matter how hard you work, no matter how much increment you get, there just seems to be nothing in the bank.

The other way to manage money is the TWO banks account system. That is a slightly better version. When the paycheck comes in, you first take 10% of your money and put it in another bank BEFORE you settle your other bills. This is called the Pay-Yourself-First model. This is pretty good. In fact, I also practised this for quite a few years. The downside of this model is usually 1 big item such as a holiday or house renovation, wipes out everything in the account where the savings is put in.

I am sure you have experiences in using either the ONE bank account or TWO bank accounts system. If these 2 systems do not work, why do you still want to stick on to it?

So, what is the best way to manage money?

  • It has to be Simple
  • It must be Easy to operate
  • It caters to Saving for the future
  • It lets you Spend without feeling Guilty
  • It invests in yourself
  • It activates the Law of Abundance

Does such a Money Management System exist? Look at my article, “How To Manage Your Money Using The Money Jar System


This is like an overweight person saying, “I’ll start exercising and dieting as soon as I lose 10 kg.” So, rather than saying “when I have plenty of money, I’ll begin to manage it,”, the reality is “when I begin to manage money, I’ll have plenty of it.”

Why? Because that is how the Universe work… “Until you show you can handle what you’ve got, you won’t get any more!”. Either you control money OR money will control You!



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