How Understanding The Flow Of Money Can Help You Prosper

Are you having a hard time managing your budget? Are you having worrying thoughts anytime your bank account is almost at zero balance?

If so, then today’s topic is specially made for you!

Understanding the flow of money may help you how to effectively manage your money well and bring you closer to financial abundance.

So without further delays, let’s begin…

Don’t be scared of money

So what does this mean?

We all are trying to become financially independent, so why would anybody be scared of making money, right?

What this means is never be afraid to take risks! Take note that the higher the risk, the higher the return.

You are aware that your current methods are no longer working, and they aren’t giving you the results you want, but you still go on with the same process believing that for some reason, your situation would change.

Spoiler alert! It won’t!

You need to understand that repeating the same action brings in the same results. Therefore, I believe it would be foolish to resume what you’ve been doing. Does it make sense?

What is money, anyway?

Before we begin discussing and understanding the flow of money, I believe that it’s also important to talk about the nature of money briefly.

After all, we can fully appreciate money once we understand its purpose.

Investopedia defines money as the medium of exchange. In layman’s terms, it is what the community uses in acquiring goods, services, and other necessities or wants.

Money is just a piece of paper if you think about it.

But in the early years of currency, you hold a paper with a specific amount on it, specifying the value of golds you own in the bank.

Nowadays, the worth of paper bills and coins is based on their facevalue.  Also, its values vary depending from one area to another. For example, the value of 10 USD will differ in places like India or Japan.

Terrified about losing money?

We’ve talked about this earlier—don’t be scared of money!

The problem why most people don’t achieve the result that they desire, or worse, lose money, is that they are playing safe.

They are afraid to put up capital and work on their investment to grow. Such individuals are afraid to lose money, and therefore, they lose more money.

However, there are ways how you can minimize the risk involved—and that is to start early.

And by doing so, not only that you increase your wealth bit-by-bit, but it also creates some sort of leverage in events that loses occured.

Always pay yourself first

You need to cater to your needs first before anything else. But why do you have to do this?

The answer is motivation.

Let’s take, for example, a situation wherein you have to choose between the person you have to pay first—your creditors or yourself.

A creditor will definitely scream louder if you don’t pay them, whereas you may have no reaction when you didn’t pay yourself first.

Your creditors, bills, and other recurring expenses will scream at your face to pay them.

If you choose to pay yourself, you create a motivation where you have to tap your creative genius in generating money. May it be investing in stocks or taking part-time jobs, you find ways to earn money and stop them from yelling at you.

You also have to remember that constantly applying pressure makes your money skills develop.


When you become desperate for money, it creates anxiety and unnecessary pressure.

As we all know, negative stress not only affects our overall wellbeing but our ability to manage our daily tasks as well.

Money is essential in our daily lives. But it doesn’t have to control every aspect of life.

Not worrying about your current financial status allows you to become calm and collected. Therefore, it helps you to accomplish your goals more effectively.

Final thoughts on understanding the flow of money

I hope my content has provided you insights on how to effectively manage your budget by understanding the flow of money.

Its initial steps won’t be easy, and I can tell you that. But as you move forward and make an effort to sort things out, then I believe that it would work out eventually.

Well, I guess that’s just about it!

I hope to see you on the next topics!



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