If you’re a gamer you’re familiar with that little red bar called HP (Health Points). If that reflected your money, what makes it go up or down? In the first instalment of our Money Management Role-Playing Game (MMRPG), we’ll be exploring our Money HP! Let’s take the first steps in our quest.

PS: if the above is gibberish to you, have a quick look at the introduction article. There I’ve outlined the most important parts of a Role-Playing Game (RPG).

1. How your Money HP bar works

The Money HP Bar is surprisingly easy to understand (and misunderstand). 

• the total amount is your earning potential. 
• Income makes it go up (think “health potion”).
• Expenses make it go down (think “damage”).

Easy right? Hold your horses, let’s first consider a few basic truths.

2. The basic truths of your Money HP

•  As with any RPG, we start off with a small amount and need to do some grinding to level up and increase our Money HP.
  • We have to improve our knowledge, skills and experience. This will increase our income earning potential. As frustrating as the grind is, it’s worth it in the end.
• Your salary is the “health potions” you take before every quest. 
  • Make sure you look after your “health potions” (protecting your salary) so that you are able to embark on the next stage.
• You need to manage the amount of “damage” you take, because when it reaches 0, you “die”! 
  • This means limiting the “big shots” (debit orders) you take, and dodging “small shots” (splurges).
• A temporary boost just to stay alive is dangerous.
  • Debt always comes with a price. Remember that it will always take away more than what it gave after some time. Imagine a “cursed health potion” that gives 30 HP for 30 seconds, then takes 45 HP. Does it still sound enticing?

3. When in doubt, remember this picture

Thanks for your time,

Francis

Image source: Battleheart Legacy (Mika Mobile)