Best Money Related Proverbs
Proverbs are a great way of increasing emphasis on the importance of principles. Proverbs allow people of different ages to dig deeper into concepts which affect their daily lives. Money related proverbs provide deep insights into financial decisions that could have lasting impact on their lives. Money related proverbs plant seeds of belief in our mind that affect how we value money and use money.
He Who Pays the Piper, Calls The Tune
The proverb brings to light influencing factors on personal finance which intersect between economics, psychology, and sociology. An individual who pays for goods and services naturally has the most control over how a situation or agenda is carried out. Their ability to purchase resources gives them more authority. By law, an individual who pays for a good may assume control over said good they pay for. These concepts may help some individuals realise just how important it is to own resources that produce income. With ownership of income producing resources, an individual may have greater control over how their income is generated.
A Good Payer is a Master of Another’s Purse
Paying bills on time is a major determinant of credit score and several other key aspects of personal finance. While many may not be concerned if they pay their bills late, studies show that households’ ability to successfully apply for loans and even insurance can be significantly affected by credit score. Credit score can be just as important as credit rating. The score is based on several factors, including the amount of money owed, types of credit, and how quickly bills are paid on time. With a good credit score, it can become much easier to get lower interest rates on credit cards, reduce late fees on credit cards, and reduce insurance rates on cars.
Bad Money Drives Out Good
In economics, Gresham’s law states that bad money drives out good money in circulation. The law is typically applied to the currency markets. It was originally based on minted coins and the value of metals in them. Today, the law applies to cryptocurrencies and and global currency markets. In contrast to good money, bad money has equal or less value than its face value. When faced with a decision on two currencies to use, an investor will use the currency trading at its face value and hold a currency worth more than face value. In the context of Bitcoin and Ethreum, if the value of Ethereum is falling against Bitcoin, investors may choose to spend Ethereum and hold Bitcoin.
Money Talks and Wealth Whispers
In the words of Nassim Nicholas Taleb, “It takes five years to learn how to make money; and twenty-five to learn how to not lose it.” Becoming rich is no easy feat. Staying rich is much harder. Growing riches takes a lot of self-control. The wealthy have mastered the art of self-control, closing not to try and impress friends and acquaintances with luxury items.