"Respect, just a little bit" ... is what Aretha Franklin sang out at the top of her lungs in her hit song. Come on, you know the words. But what is respect and do we need to start respecting our money better?

 

A funny thing happens when you stop respecting things. They tend to go away or break down. Stop talking to your friends with respect and they won't come over so often, if at all. Don't show your loved ones respect and your whole family can split up. Even if you don't respect your car with yearly tune ups and oil changes, you might be broken down beside the highway somewhere. It makes sense, doesn't it?

 

The same is 100% true for money. If you don't respect it, you might find it leaves your bank balance more quickly than you might otherwise like. But money is not something which needs to be talked to or tuned up, I can hear you saying. How can one respect money? Here are some ways you might not be respecting your money; see if any apply to you:

Here are two fictitious classes; you guess which one is true.

 

Today we are planning to talk on the subject of how to spot rich and successful

people.

 

As you go through life you may want to become a rich and successful person. Copying the habits of these people is extremely important as most people will not share their real wealth with you because they keep it a secret. This class should be seen as a guide to spotting these people quickly and easily.

I don't mind listening to talk back radio from time to time. And here at least in Adelaide we have some very vibrant stations and hosts. After the RBA announced on 1st November 2011 (Melbourne Cup Day) that they were going to reduce home loan rates, one of our hosts invited people to call in to talk about what it would mean for them and their budget.

 

One conversation really stuck with me as the days passed. A husband called up to talk about his family's problems. He said only 14 months ago he had to take a new work opportunity which didn't pay him as much as his previous job did. The last 14 months have been extremely tough on the family as they have survived financially, but only just. The lower interest rate meant they would add around $17 a week extra to their budget.

Joe DiMaggio is known as one the world's best ever baseball players. He had a 56-game hitting streak and achieved a record which still stands to this day. Also he was a three time MVP, and was married to Marilyn Monroe.

 

He started his professional career in 1936 and ended it in 1951, fifteen years later. In 1949, at the peak of his career, he signed a contract worth $100,000 a year (or $921,000 in today's dollar terms). But he wasn't always on this type of money. In fact each year over the 15 years he only earned on average $43,283 (or $398,636 in today's dollars).

 

So a relevant way of saying things would be in his 15 year career he earned a total $5,975,546 in today's dollars. Not a bad career by any stretch of the imagination.