What you need to do to master your money

The ability to master your money is not something that just happens. It takes time, training, and temperament. However, it is something we all need to do. If you never learn to master your money, you will always be struggling to make ends meet. You will always be slave to debts. So, start learning to master your money now.

The first thing that you need to understand about mastering your money is that it is in your hands. Ask yourself the following questions:

1. Is your credit card bill is paid in full each month with never a penny in interest incurred? This has to be something you do if you want to master your money. Buying on credit without the ability to pay makes you slave to your money, not master.

2. Do you understand that the variable annuity in which your neighbor just invested will prove to be a sad mistake? This is just an example, however, the truth is, if you want to master your money you have to be able to understand the different things you can do with your money. So, to master your money, learn about the different options you have, which are good, which are not so good, what risks are part of that, etc.

3. Despite orchestrated furor by the media, do you recognize that the $30 it costs to fill your vehicle's gas tank is cheaper in today's dollar that the $15 it cost 20 years ago? You have to understand that money has value, and that value changes. A dollar today is not going to be the same as a dollar tomorrow. Understanding that values change is part of mastering your money.

4. Do you enjoy financial talk shows for their entertainment value while knowing that 95% of what's said is nonsense? If you are master of your money, then you won't take what a so called "expert" says as fact, but you will do your own research.

5. Is the only type of life insurance that you'd ever consider purchasing a term policy? There is whole life and term life, do you know the difference? Do you know why whole life is a crock? Mastering your money means having an understanding of cost versus value.

6. Are you tempted to invest in something because of a hot tip you get from a friend or relative? When you are master of your money, you do not rely on hot tips, but on your knowledge.

7. Do you challenge quality and cost of items? If you think that the paper towels that cost $5 a roll are 5 times better then those that are $1 a roll, you may not be master of your money. Just because something costs more does not necessarily make it that much better. So, if you are master of your money, you will learn to find value not by the number attached to something.

8. Are you are sufficiently sophisticated in real estate to know that the worst house in the best neighborhood beats the best house in the worst neighborhood? Part of being master of your money is knowing what is going to hold value, and what is not. Location is everything with real estate, and it is always best to be on the lower end of the spectrum, and be in a better neighborhood then your house should be in.

9. What do you owe on the vehicle you drive? If you answer nothing, you are probably master of your money. If you owe a lot on your vehicle, you probably should not drive it. The value on vehicles drops significantly each time you drive them. If you get in a wreck, will you owe more on your car then it is worth? Probably.

10. Do you live in a house less expensive then you can afford? If you always buy at the top of what you qualify for, you will never be master of your money because you will never have any to master.