The Cardinal Rules on Money are simple. Yet, many, if not most people, completely ignore them. Perhaps, it’s because they do not know them.
Should you use fourteen or nine categories? The answer is entirely up to you. If you decide to go with the nine, then the following is for you.
The Money Blueprint is comprised of nine categories (1) Tithe, (2) Savings, (3) Housing and Utilities, (4) Transportation, (5) Debt, (6) Food, (7) Life, (8) Clothing, and (9) Entertainment.
As you start to save and learn to handle your money, you are going to discover that it is a long process. You can’t do it fast. Look at Proverbs 21:5:
“Steady plodding brings prosperity; hasty speculation brings poverty. “
There’s a great thing that you might be unaware of and that is compound interest. Compound interest is a powerful thing. The way it works is that when you save money you earn interest on the principal and the interest. Let’s define principal. Principal means the money you put (save) into an investment instrument, savings account, money market account, etc.