Financial Education is THE most powerful money magick! Start here

Money & Law
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I have seen a very relevant question posed over and over again, both on BALG and elsewhere: “why are so many magicians broke?”. There is no simple answer as the reasons are different for the individual. Some simply do not care, others have other focuses and some just don’t know any better. Most of those are the same reasons why many non-magicians are broke.

Now I am not wealthy, but I am also not broke by any means, and my income and asset base is expanding, slowly but surely. The game changer for me was financial education. Money magick is all well and good, but if you do not understand money then you will probably never get past a certain threshold of manifestation. We cast, the money comes, but it never seems to last. Why? Because of what is done with it. It takes a psychological paradigm shift to create wealth and abundance, both in the magick and non-magick context.

So, for anyone interested, I am going to start sharing the things I have learned that have helped make that shift for me. This will be the main thread, where I will propose a concept and then an example of the concept in action in a magickal context as well as a mundane one. I will also be adding links to resources for you to check out when you have some free time. Please do not clog this thread, as it is meant to be a resource hub. Thanks to all here at BALG, and let’s fill ourselves with the essence of abundance!

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Assets and liabilities article:

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Great idea, I would like to add one point :slight_smile:.

As one wise man once said,
Savings = Earning - Spending.

How much do you need to earn?? That depends on spending ;-).
Next step would be calculate the spending.

Make a list of things you pay money for on a daily basis fruits, travel, foods, lifestyle requirements, light bills, internet, phone bills, etc etc. To make calculations easier, calculate for one month. e.g. cost is about $2000.

Your goal is to make more money than you need. Period.
It’s your responsibility and yours alone to make more money than you need.

If you are not making enough money, then you gotta figure out a way to make more money, get a promotion, learn new stuff to increase salary or simply switch the job to get that 30% hike in salary, evoke a certain spirit to increase sales or launch a new product if running a business, etc etc.

If you are already earning more money than you need, you can still do some magickal workings or the mundane ones to increase your salary or income ;-). More money you EARN the better it is. 99% of people have only one income source. None is stopping you from making multiple income sources.

Did you NOTICE the word EARN??? :wink:

Anyone can do the math, but what you do with your savings matters the most. Invest your savings in a place that will give you a sureshot ROI. Never put all of your eggs in one basket :smiling_imp:.Read the terms and conditions of investment before doing anything, as they are subject to change depending on market conditions :wink:

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Greatamazing short advice thanks guy

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I would add a couple things to that.

What you earn is not so important as what you can keep. If I make 50K a year and someone else makes 80k, but at the end of the fiscal year the 80k earner has 5k to show left after expenses, and the 50k earner has 10k to show for it, who is actually earning more on a functional level?

Also, savings are only relevant when they are being built up to serve a larger purpose. If you are saving for the sake of saving then hyperinflation will eventually eat you alive.

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@Woodsman81 You are right, what you can keep at the end of the fiscal year matters :slight_smile:

To further my original response,
Spending can be divided on two subcategories -

  1. Planned
  2. Unplanned

All the spending examples I have given above will be planned ones.

Unplanned expenses always happens, you cant keep track of those small bills that crops up in the middle of nowhere, bulb stopped working, your car gets a flat tire, some stupid kid broke your headlamps while playing basket ball in his yard, you got a ticket for speeding etc etc.

Always assume (DONT ASSUME, KNOW THAT IT IS SO) that you will have some unplanned expenses. If you could note down your unplanned expenses for a year or so, you could end up with a number to serve you as guideline for the future. As a general rule of thumb, you could assume a % of planned expenses as your unplanned expenses. e.g. If your planned expenses are $1000, one could say 20% of that is my unplanned expenses which will equal to $200.So the minimum money you need to earn is $1200.

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The easiest and most painless way to save and build up your income is with YNAB otherwise known as “You Need A Budget” they have great free training and an awesome app for your phones and websites. I think its $50 a year and you can easily start saving a few hundred a month. It was a huge game changer for myself. Then your main goal is to save up 1 month of full income once that is done its time to start investing personally I recommend Roth IRA accounts because they increase tax free forever.

When you reach that point I suggest Vanguard to open your IRA they have the lowest fees and then open Vanguard S&P 500 stock market index. The worlds best investor Warren Buffet even suggests his widow keep the money in there when he does. Overall last 8 years had a average of over 8% return. Ok thats all for my opinion hope this helps. Its an easy forget it way to get a good return.

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Just out of curiosity, how does interest come in to this? I’ve been trying to save up money to open a savings account that will actually give me interest and I’m also trying to become more literate in money since I’ve had issues with spending compulsions in the past. So I really do appreciate this series you’ve started up.

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The interest in most savings account is usually too small to matter. When it comes to bonds you own it is your friend.The banks sell the bonds to investors then the company pays the investors instead of the bank. The payments on the bonds are the payments on the loan the company got the loan the bond is based on.

Provided the company does well and continues to make their payments. Hence why it is good to research a company you make be interested in investing in whether it is in stocks or bonds. So you can investigate their history of success or lack there of.

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Interest will be a part of the Savings from the above equations. It will vary from 6% to 8% depending on the banks you open your account in. You have to do R&D for the local banks in your location.

Savings can be dealt differently. One could simply put in a savings acct or put it in fixed deposit, become a money lender to make more ROI(is more risky), Or buy goods at lower prices and sell for higher (only works for goods that many people use e.g. gold and silver), learn to trade on stock market (more risky but could give more ROI, ROI is not guaranteed though), etc etc. Also, it is safe to assume that more the ROI more is the risk of loosing it.

Jason Miller has written a good book for novices like us, its named Financial Sorcery. It is an awesome start for anyone.

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Well the first main goal is to always have 1 month of spare cash in your account. This saves you from interest from unexpected expenses being car repairs and other things. You generally will always make less a return on investments than you would have to pay on a credit card if you didnt keep the extra cash to cover it.

The extra income beyond that goes to investmenting. If you plan on investing for 5 years or greater generally the best bet is in the stock market as I suggested. You really dont need a saving account if you use YNAB.

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Careful with that if your in the USA you are not going to get 6 - 8% savings accounts currently not even with CD’s.

Nerd wallet is a great site to compare things. Right now best savings accounts are around 1.5% but remember inflation is 3%. So you you are losing 1.5% on the money you keep in the savings account only paying 3%.

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Full disclosure YNAB has an affiliate program and I personally use/love YNAB. The link below is not an affiliate link I literally don’t make a dime on this. Take a free training class to learn how to use it. Also they pick a person every class to get a free membership. I suggest Get Started and Prioritize for the first class.

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@ResultsOriented I live in India and we get 6% -8% interest on savings account. That’s why I said “You have to do R&D for the local banks in your location.” :wink:

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Not a bad deal pretty envious of that return.

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In addition legally, bond holders get paid FIRST, even in the event of bankruptcy

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Here’s a great resource if you want to buy Muni Bonds. Generally if you buy them in the state as you are in they are tax free. Register for a free premium account (its free). This is only for USA though.

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At the end of year in usa. We oay taxs. And then more taxs. So money go a litle down.

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This ^^^^. If it is taxes that you feel are draining your ability to invest in your future, both physically and magickally, then you now know what you need to educate yourself in.

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I think I need on of those fancy budgeting charts.