by Brian Cody

Created on: January 06, 2010   Last Updated: January 07, 2010

Understanding how your ability to manage your money is a vital skill set to develop.  Your relationship to money is as important as your relationship to your spouse, family and friends.  How your spouse handles money is also a vital factor in your failure or success in money management.

Building and cultivating your money consciousness is a sign of financial maturity.  In children their motto is "I got to have it now", "I need it really, really bad" The next level of maturity is understanding that you have to work for your money.  Some people will view money as the root of all evil. A fully maturity phase is one where a person will seek out knowledge of how money works and how to put the money to its highest and best use.

 Financial literacy is the seed that can grow the money tree of knowledge. As a child how many times have you heard your parents say, "What do you think, that money grows on trees?"  No money does not grow on trees.  However, if you understand the role of money, you can grow your financial knowledge from a seed into a money making tree.  

 One of the first steps in financial literacy is to understand the language of finance.  You can study the dictionary of finance and investment terms.  Once you grasp the language of finance then you can begin to comprehend the basic concepts of finance and money.

 You can educate yourself to understand basic finance and business statements.  Know what is defined as good debt versus bad debt.  Discover how cash flow affects your personal and business success.  Track your income and spending.  Know what an asset is and what a liability is. Build up a Net worth sheet to know where you are at financially speaking on any given day.

One example of good debt is to purchase an asset that produces income for you.  Improve your job training skills through education.  Build a part time business on the Internet or off the Internet. Become an affiliate marketing expert.  Purchase rental income producing properties.  Purchase bonds, commodities, mutual funds, stock option sales, stocks.  Utilize the dividends, interest, option premiums to purchase additional income producing assets.

 You can educate yourself by viewing cable TV programs such as CNBC, CNN, PBS Wealth Track programs.  Fully utilize your local public library resources.  Subscribe to financial magazines.

Attend financial money management seminars in your area.  Some are free, some will charge a fee to attend.  My favorite saying is "If it is free it is for me"

Find a  financial money guru/mentor to guide you towards your financial goals. You can also join local investor meet up groups.  One source to see what is available in your local area is http://www.Meetup.com.

There are an important group of people who can greatly influence your failure or success in money management.   Your spouse, family and friends.

It is hard to achieve success in life if your spouse, family, and friends are constantly negative and are spending like there is no tomorrow.  You need to expand your group of friends to include successful people who can provide you with positive guidance.

Awakening and cultivating your money consciousness is key to your success in life. With your dedication, hard work, and persistence you can achieve your own goal of financial freedom.

Learn more about this author, Brian Cody.
Click here to send this author comments or questions.