Once upon a time, there was a young man named Ravi who lived in Kurunegala, Sri Lanka. He worked as a cashier at a supermarket and earned a modest salary. He had a dream of traveling the world and seeing different places and cultures. He wanted to save money for his trip, but he always found himself spending more than he earned. He bought things he didn’t need, ate out at expensive restaurants, and gambled on cricket matches. He never kept track of his expenses or made a budget. He was always in debt and had no savings.
One day, he met an old monk who was visiting the supermarket. The monk had a serene smile and a calm demeanor. He wore a simple robe and carried a wooden bowl. He approached Ravi and asked him for some food. Ravi was curious about the monk and gave him some bread and cheese. The monk thanked him and said, “You have a generous heart, my son. But you also have a restless mind. You are not happy with what you have, and you chase after things that do not bring you peace. You waste your money on things that do not last, and you neglect your true wealth, which is your health, your family, and your spirit.”
Ravi was surprised by the monk’s words and asked him, “How do you know all this about me? And how can I be happy and peaceful like you?”
The monk smiled and said, “I know because I was once like you. I used to be a rich merchant who had everything money could buy. But I was never satisfied and always wanted more. I spent my money on luxuries, pleasures, and vices. I neglected my health, my family, and my soul. I was unhappy and miserable. Then one day, I lost everything in a fire that destroyed my house and my business. I had nothing left but the clothes on my back. I realized how foolish I had been and how empty my life was. I decided to renounce the world and become a monk. I learned to live simply and mindfully, to be grateful for what I have, and to share what I can with others. I learned to manage my money wisely and to use it for good causes. I learned to be happy and peaceful with myself and with others.”
Ravi was amazed by the monk’s story and asked him, “How can I learn to live like you? How can I manage my money wisely and use it for good causes?”
The monk said, “It is not difficult, my son. You just need to follow some simple steps:
- First, you need to keep track of your income and expenses. Write down how much you earn and how much you spend every month. Categorize your expenses into needs and wants. Needs are things that are essential for your survival and well-being, such as food, water, shelter, clothing, medicine, etc. Wants are things that are not necessary but make you happy or comfortable, such as entertainment, hobbies, gadgets, etc.
- Second, you need to make a budget. A budget is a plan that helps you allocate your money according to your priorities and goals. It helps you control your spending and save for the future. A budget should include your income, your fixed expenses (such as rent, utilities, insurance, etc.), your variable expenses (such as food, transportation, clothing, etc.), your savings (such as emergency fund, retirement fund, travel fund, etc.), and your donations (such as charity, religious offerings, etc.). A budget should be realistic, flexible, and balanced.
- Third, you need to follow the 50/30/20 rule. This is a simple guideline that helps you divide your income into three categories: 50% for needs, 30% for wants, and 20% for savings and donations. This means that half of your income should go towards covering your basic needs; one-third of your income should go towards satisfying your wants; and one-fifth of your income should go towards building your savings and supporting good causes.
- Fourth, you need to pay yourself first. This means that before you spend any money on anything else, you should set aside a portion of your income for your savings and donations. This will help you achieve your financial goals faster and avoid spending more than you can afford.
- Fifth, you need to pay off your debts as soon as possible. Debts are liabilities that drain your money and limit your freedom. They also incur interest charges that increase over time if you don’t pay them back promptly. You should try to avoid getting into debt in the first place by living within your means and using credit cards wisely. If you already have debts, you should try to pay them off as soon as possible by using the snowball method or the avalanche method.
- Sixth, you need to invest your money wisely. Investing is putting your money to work for you by earning interest or dividends or by increasing in value over time. Investing can help you grow your wealth faster than saving alone. However, investing also involves risk and requires knowledge and discipline. You should only invest money that you can afford to lose and that you don’t need for a long time. You should also diversify your portfolio by investing in different types of assets, such as stocks, bonds, mutual funds, real estate, etc. You should also consult a financial advisor or do your own research before making any investment decisions.
- Seventh, you need to be generous and compassionate. Money is not an end in itself, but a means to an end. Money can help you achieve your personal goals and dreams, but it can also help you make a positive difference in the world. You should use your money not only for your own benefit, but also for the benefit of others. You should share your money with those who are less fortunate than you, such as the poor, the sick, the needy, etc. You should also support causes that are important to you, such as education, health, environment, human rights, etc. You should also be kind and respectful to everyone you meet, regardless of their financial status. You should remember that money is not the only measure of a person’s worth, and that happiness and peace come from within, not from without.”
Ravi listened attentively to the monk’s advice and felt a surge of inspiration and motivation. He thanked the monk and said, “You have opened my eyes and my heart, sir. I will follow your steps and change my life for the better. I will manage my money wisely and use it for good causes. I will be happy and peaceful with myself and with others.”
The monk smiled and said, “I am glad to hear that, my son. I wish you all the best on your journey. Remember that money is a tool, not a master. Use it wisely and generously, and it will bring you joy and fulfillment. Abuse it or hoard it, and it will bring you sorrow and emptiness. The choice is yours.”
Ravi nodded and said goodbye to the monk. He went back to his work with a new perspective and a new purpose. He started to follow the monk’s steps and soon saw the results. He reduced his expenses, increased his savings, paid off his debts, invested his money, and donated to charity. He also improved his health, his relationships, and his spirituality. He felt happier and more peaceful than ever before.
He also saved enough money for his trip around the world. He bought a ticket and packed his bags. He was ready to embark on his adventure.
He remembered the monk’s words and smiled.
He had learned how to manage his money.
He had learned how to live.
