Most time when people hear about “MMM” they first think about the phrase “money making machine” or the new business in town that everyone is rushing into, where they render help to people and in turn get help from others.
But seriously, you’ve got to take your mind off those aforementioned. The “MMM” we would be discussing here in details are quite different from the above, it is an entirely different concept from the above.
The “MMM” of money in regards to this article is more of a formula and a method for increase in your finance. If you like, it is more of a dynamic way through which you can effectively become rich or financially stable.
If you read our previous post, where we discussed on why the rich are getting richer while the poor get poorer you would see clearly that the rich knows something that the poor do not know. The rich have a way of getting things done the right way and not like the poor who do not really care much. Also in that post we saw that the rich do not spend anyhow, but rather they invest.
Thus, the rich understand the “MMM” of money and they abide by it. This is what we are going to be discussing in details.
What Then is The “MMM” of Money?
As earlier mentioned, “MMM” here is more of a method for increase. And this method includes:
- Making Money
- Managing Money
- Multiplying Money
The above are the 3M’s or “MMM” of money, and with these, you can definitely be guided on the right track to increase your finance and to make more money.
The act of making money is not limited to a particular set of people, or rather limited to one source. Also it is not a matter of just owning an offline business.
With the Internet and the World Wide Web, there are thousands of opportunity that are open to everyone in order to make money. The Internet is a haven of unlimited opportunities.
It is a proven fact that people can make money from the Internet through working online. Internet is profitable for many, but for others it is maybe a sheer waste of time. I am in support and in favour of making money online since there are many obvious advantages for people who make money online instead of working offline and making money. Even though you don’t make much out of the internet, you can still benefit a lot from the process.
Furthermore, making money via the Internet through the regular ways which you must have heard about, the whole world and most human activities are now being done on the Internet. Businesses can be done online, Investments can be done online and many other things too.
However, money can still be made offline, ranging from owning a business, selling goods or rendering of services etc.
The rich knows that making money, whether online or offline is a paramount thing. They strive continuously to have a source that can fetch them steady income. It may be a passive income or not.
Another reason why you should make money is for the purpose of attaining financial freedom. Most wealthy people enjoy the freedom money provides them. Freedom provides you with the ability to try new things, make new investments and have more choices.
Thus, if you want to be like the rich you must learn the very art of making money. This is the first among the “MMM” of money, and without this, the other two methods in the “MMM” of money will not be effective or better put, without the first of the “MMM” of money which is “making money”, there will be no management or multiplying.
The second if the “MMM” of money is “managing money”. After, getting a source or several sources to make money, there is need for you to learn how to effectively manage the money.
The rich make money, there after apply some managing skills on how best to use or manage the money.
How you manage your money can have a profound impact on your life, yet very few schools teach these important skills. You were probably taught some basic mathematics while growing up, but too many people make it all the way to adulthood without ever learning basic money management skills like creating a budget, investing for the future, how best to save. etc.
To many people, managing your finances feels like nothing but a whole lot of calculation, paperwork and numbers. You make X amount of money, you spend Y amount of the money, and you try to make sure Y is less than X. However, the most important part of managing money is more of your mindset, habits, and the values or the standards you choose to live your life.
Furthermore, in managing money which is the second method in the “NMM” of money, some few rules may apply, rules such as:
- Spend less money than you earn.
- Always plan for the future.
- Let your money make more money for you. etc.
Thus, spending less than you earn will always be beneficial. Investing your money and allowing it to make more money for you will always be better than doing nothing with it. And planning for the future will always be better than blowing your income or paycheck as soon as you get it. You do not need to be an accountant to succeed financially.
Also, you might want to track your spending. You can start by writing down every money you spend for 3 days. Once you do that you start getting the feel for what you’re spending on everything, then you can figure out the places where you need adjustments.
Understanding this second method in the “MMM” of money is very crucial to your financial freedom.
This second method in the “MMM” of money, encompasses or it cut’s across saving, budgeting and investing. If you can get this method right, the work is already done, you are now ready to excel beyond measures.
This is the last of the methods in the “MMM” of money. This is diversifying your income.
After, you’ve made money, and you’ve successfully learnt how to manage the money you made, the next thing to do is to multiply the money.
There are many ways to multiply your money, and the internet is full with many of them. Not just the internet alone, but some other stuffs offline that you can be involved in.
One of the best ways to multiply your money is by lending it out to others through a peer-to-peer loan. This is a great option if you have little money to invest with or you want to diversify your investing. Also investing in the stock market is the go-to for multiplying your money. I know the stock market can be risky. I know you’ll lose money. You know what? You’ll also make money – you can’t do that without not having risk. Don’t give the regular excuse of having little money to invest. If you have only few hundreds or thousands of money or less, it makes a difference and can be invested. Hence, can be multiplied.
You might also think of owning lots of assets and not liabilities. The rich love assets and hate liabilities. The lesson we can learn from the rich is that they are buying more assets not liabilities. Assets are those that can help you generate money while liabilities are those that pull out money from you.
If you want to multiply your money fast, start today. If you will start in investing your money early, your money will grow overtime. They will accumulate faster. However, it takes time to see the results. In investing money, you need to have a self-discipline in handling your finances, which was what we discussed in the second method of the “MMM” of money where we talked about managing money.
If you want to multiply your money or wealth fast, you must learn how to invest your income. Have some time to read books on finance, attend investing seminar and do not forget to do what rich people are doing; they are buying more assets not liabilities.
Finally, these 3M’s or “MMM” of money are key principles that will act as guides on your way to financial freedom.
These “MMM” of money are what the rich use and hold dear to their selves, and it made them what they are today. They did not get to their present state overnight. They did some work and followed and broke some principles to attain the height they now cruise in.
You too can be like the rich in your society, if you can give due considerations and cogitate on these 3M’s or “MMM” of money.