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The Truth About Money Management Money can be a terrifying topic, but don't let fear get in the way of making informed financial decisions.

By Randy Garn

entrepreneur daily

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Money can be a terrifying topic. Even the word itself seems daunting, with all of its underlying connotations. Because of this, some turn away from dirtying their hands and gaining important, empirical knowledge in the world of money managing. Instead, they turn their faces from it, and turn their money management over to someone who knows better.

The unfortunate truth is these types of people will never generate the wealth they want or need. Money knowledge (what to do with it, how to use it, where to invest it, how to make it work for you, etc.) is one of the most important instruments in the tool belts of the wealthy, and they wield it as a weapon.

I sat down with reputed money-management mentor Chris Naugle (who, full disclosure, is also a personal friend) to discuss this important topic, and he started off with this gem: "Money isn't complicated. I've spoken with so many people who have held onto this common misconception that they've developed from an early age. This leads them to believe that you're better off handing it over to someone who can do more with it, or understands it better, than you can."

Related: Learn the Personal Finance Habits of Wealthy Entrepreneurs

And this misconception isn't only reserved for a select few. Naugle admits he felt this same way before diving head-first into life as a financial advisor. However, after years of education, practic and even some failures, he's learned some valuable lessons, like this one:

"The truth is that money is simply a tool. A tool that has a right and a wrong way to use it. Unfortunately, most of what we are taught is the wrong way, and that's where a majority of our money problems stem from. Trust me, I know it's hard to hear — or believe — that everything you've ever been taught about money is flat-out wrong."

Here is Naughle's insider breakdown on optimal money management:

The down-low on privatized banking

If you're not in control of your money, someone else is, and you can bet they're using your money to get richer. So the idea is to put your money in your own hands.

You may have heard this concept before. It goes by many names: The Money Multiplier, Infinite Banking, Privatized Banking, etc. But the name isn't what's important; it's the significance. This concept puts you in control of your money and makes you your own bank. You are able to use a specially designed, whole-life policy with a mutually owned insurance company that pays dividends and puts you in a position of power.

The bottom line: It's your money, and you need to be the one earning the interest on it. Your bank isn't doing you any favors with that skimpy rate.

Why you shouldn't be asking for money to fund your deals

I still get baffled looks at the mere mention of this nugget of truth. You may be wondering, "How on Earth is that even possible? Don't they always tell you to ask until you find a "yes'?" That's what most people say, but that information isn't correct either.

Instead of coming from a position of needing permission, try solving someone's problem. That way you can approach them from a position of authority and power.

As an example, let's you spark a conversation with your neighbor, Jim. Both of you have exchanged many stories over the years, so this starts off just like any other conversation. Except this time, you're listening to him differently so you can really tune into what problems Jim may be having that you can help solve.

Jim tells you that everything is going great, he's in good health, his kids are having kids and he's now enjoying being a grandfather. Recently, he's started looking at RVs that would be big enough for the whole family to enjoy on camping trips. But before he gets an RV, he wants to finish paying off his truck.

**Ding Ding Ding**

Now, that's a problem you can solve. You and Jim have been neighbors for 12 years, and it's pretty safe to say he's got some equity in his home. What if he could loan you $100,000 of that equity at 12% interest (enough to pay the interest he owes and enough money to pay off his truck)? Then, you could complete your deal and he could make money. That's a win-win. He already knows and trusts you, which makes him far more likely to lend to you, and you both could make money on the deal.

That's it! We're just trying to solve someone's problem. Give them an offer they can't refuse, and you'll both come out ahead. (I will add here that Jim will only trust you if you've been a good, upstanding neighbor. Yes, relationships and how you treat people really do make you wealthy.)

Demystifying winning strategies with options trading

If I told you that, in less than 10 minutes a day, you could earn higher returns than your High Yield Savings account offers, would you think I was crazy? Well, regardless of what you think, it's true. You can earn higher returns just by investing 10 minutes of your time, per day, in Options Trading. From there, the process can be repeated and simplified, so you may only need to spend 10 minutes a month to get the same, mind-blowing results.

So what does it take? The trick is finding the right strategy that fits your goals, and sticking with a method that works. We're not trying to reinvent the wheel here. There's no need to overcomplicate it.

Related: The 8 Most Common Areas of Overspending in Business

The bottom line is, without the proper knowledge and consistent application of that knowledge, you're going to stay stuck in a place you don't want to be. How many years of your life are you willing to give up control, simply because you've been given the wrong information about how money really works?

I've watched Naugle change the lives of thousands of people through this simple, and correct, money-management advice. The truth is, money doesn't have to be complicated. It doesn't have to intimidate or scare you. And, most importantly, your money can work for you.

So, have your money make you more money. That's managing wealth, intelligently.



Randy Garn

Entrepreneur Leadership Network® Contributor

Investor / Entrepreneur

Randy Garn is a passionate entrepreneur, speaker, and New York Times best-selling author. He has mastered the art of customer acquisition, marketing, sales and how it relates to overall lifetime customer experience for many top experts, CEOs and influencers today. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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