Bolt From Your Money Prison With Three Gems

In all the years I spoke about money, there were 3 gems.

Few capture them.  But, you can by grabbing these.

Paul Markey taught me the priceless keys to wealth.

He was a successful real estate developer in San Antonio, TX.

Maybe one of the most successful in the U.S.

His crowning achievement was Stone Oak, one of the largest privately planned cities in the United States.

How Money Works

Growing up with his son, Mike, I watched Paul work his business.

He never worried about missing a deal because he understood money.

“Steve, there are three kinds of money.  Now now money.  Now money, and later money.“  Paul Markey

• Now now money is money you make and need now for every day expenses.
• Now money is money you have available but refuse to use.
• Later is money you receive down the road.

At 26, I was happy to get option 1. Never mind options 2 and 3.

Quite simply, the goal is to direct resources into the last two pots.

Now Now Money

This is all most folks have.  The money they make now and use now.

I see this with people making $1,000,000, $300,000 or $30,000 per year.

Four reasons for this.

• Unable to stop at enough
• Unable to get over the myth the world owes them
• Unable to see the future value of a dollar never spent
• Unable to stay focused on a core business

Now Money

Very few have money now they don’t need now.  Just like very few people have income they won’t spend now.

But, this all gets back to an appreciation of what money is and how it works.

“Now money” can be a growing part of your life even if you are starting way behind with lots of debt.  How?

George Clason in his 1926 classic, The Richest Man In Babylon, describes a debt-ridden camel trader who emerges from financial chaos to financial freedom.

“I found the road to wealth when I decided that a part of all I earned was mine to keep.”  The Richest Man in Babylon

So the discouraged camel trader took a lesson from his wealthy friend and restructured a debt payback plan so that his income was spent like this . . .

• 10% savings
• 20% debt
• 20% taxes
• 50% lifestyle

I call it being broke on money that’s here but not used, kind of like uneaten dessert.

“Now I will tell you a strange truth.  When I ceased to pay out more than nine tenths of my earnings, I managed to get along just as well.  I was not short for money.  And it wasn’t long before coins came to me more easily than before.” The Richest Man in Babylon

A part of all you earn is yours to save even while paying off debt.

Later Money

 Even more scarce are those who are willing to put away resources that won’t return for years down the road.  Why?

• Because of a craze to hit the big home run
• Because of an obsession you deserve everything now

But, the road to wealth begins by setting limits on weekly and monthly income so that a percentage always goes to savings.

What are your favorite lessons about money?