Money Mastery- Book Summary

In Money Mastery By Alan M. Williams and his colleagues states that many people have caved into the emotional media hype, becoming so accustomed to spending and borrowing in order to answer consumerism’s siren call that they never question whether something should be purchased. This reckless spending is called the “disease of consumerism.”

Today’s generation, instead of fearing that it will not have anything, fears that it will not have everything.

A lack of respect for money, combined with the absence of a system for handling personal finances, largely accounts for our nation’s financial unhappiness.

People weighed down by consumerism, indebtedness, and excessive taxation have a difficult time understanding the exponential value that money can have if given a little time to grow.

Are you limited by the things you don’t know you don’t know because you’re wrapped up in the daily struggle for survival?

OR

Are you blinded by your own brilliance in thinking that you already know everything you want to know about money and its management?

Principle #1: Spending is emotional.

One of the most important questions you can ask is: “How does spending money make me feel?”

The secret to successful money management is understanding first, that money is emotional, and second, that because it is emotional, it requires a system for carefully controlling it.

In Money Mastery, Alan M. Williams and his fellow authors gave three most significant reasons people spend money;

Impulsiveness

Without the proper respect for money our current society has become notorious for impulsive, reckless spending.

Most people are trapped in an impulsive mentality that prevents them from keeping much of the money they make for any length of time.

Economic Hardship

Experiencing a financial disaster is another thing that can greatly affect feelings about money and how it should be spent.

Daily Financial Obligations

The struggle for daily survival can also affect why and how we spend money.

It matters not how much you make, only how well you manage your money that counts.

Principle #2: When you track your money, you control it.

Understanding why you spend will help you become more aware of how and where you spend.

Having a clear picture of exactly where you spend your money is extremely important in today’s consumer-driven society.

Learn the value of keeping track of where and how you spend your income.

When you fail to do so, you can easily consume every penny you earn on impulse and without any real awareness.

Tracking your money creates awareness, which helps lead you to the emotional reason you spend money in the first place. Keeping track of your money builds a powerful level of awareness that leads to emotional control.

Track All Your Expenditures

Forecast your spending by creating a spending planner worksheet. One of the most important ways to get control of your money is to forecast your spending.

It will also teach you how to reprioritize your spending so that you can stop the waste.