- Having Money is Better Than Not Having Money
When you have money, you have the freedom to live the life you want and not have to worry when something bad happens and whether or not you can afford a vacation.
- Action Step: If you have money, great keep it up! If you don’t, find ways to cut back on expenses. Learn to budget so you can life within your means. If you need help doing so, buy alternatives instead of name brands. Save money on gas. Save money when eating out. Start a side business to earn more income. Then invest your money. To be successful at investing, read my post found here.
- Don’t Become “Cash Rich” and “Time Poor”
While we all strive to have enough money so that we can do what we please with our lives, don’t sacrifice your time trying to achieve it. If you spend all day at work and only see your children to tuck them in at night, you may want to re-assess your priorities. In other words, don’t make money your idol. See it as a tool for getting you to where you want to be.
- Actions Step: Learn what opportunity cost is and weigh all decisions, not just financial, using it. Remember that everything has a cost, not just financial, and you need to know what you are potentially giving up when choosing one thing over another.
- Memories Are Better Than Material Objects
I think this is a learned point. In our teen years, it was all about the object: status symbols. I wanted the name brand clothing and the cool sports car but that shifts as we grow.
- Action Step: Appreciate life. Find out how to live a life of wealth. At the same time, learn to be present. The sooner you realize happiness comes from experiences and not things, the sooner you can build wealth.
- Watch Your “Lifestyle Leverage,” Especially Early in Your Career
This is important. Many people graduate college and stop living the college lifestyle. They buy a new car, new wardrobe, and rent the nicest apartment they can find. They leverage their future. If you are a soon to be graduate, keep living the college lifestyle. It’s OK to live with Mom & Dad for a year or two and drive around the old beater a couple more years. With the money you save, you can get a jump start on your retirement. Remember, the sooner you start, the more time can work its magic.
- Action Step: Question purchases, all purchases. Do you really need it? Will it help to get you to where you want to be in 5 or 10 years?
Advertisers are good at getting us to buy on emotion. They know that our brains have 2 sides, impulse and reason. They develop advertisements so that we make impulse buys. In a few hours when the reasoning side of our brain catches up, we regret the purchase. This is what we all call buyer’s remorse.
To overcome this, stop and question purchases to save money. When you think you want something, wait to buy it. Wait a minute or a week. Many times, you will find you no longer want it or even remember it in the first place.
- Having Goals is Incredibly Important
Goals are important. But systems are key. Goals keep you motivated and lead to success when we stick to a plan.
- Action Step: Learn to set goals for yourself. Don’t make the mistake of setting many goals at once. Take it slow. Reverse engineer long term goals into short term tasks
Paying off $15,000 worth of debt sounds daunting. After a few months, you might give up. Leave your goal to pay off the debt but set up a smaller goal. Try get your debt under $10,000. You’ll notice the progress more and will stay motivated throughout the entire process.
Once you get your debt to $10,000 have another goal to get it to $5,000. If these increments are still too big for you to stay motivated, then make them even smaller. Find what works for you.
- You Must Live in The Here and Now
This one is hard but is important. Visualize your future. While this is good, you must remind myself to stop and smell the roses. Life is a beautiful thing. Don’t miss it by living in the past or future.
- Action Step: What’s in the past can’t be changed and what lays ahead no one knows. It’s necessary to have goals as mentioned above. But it is equally important that you learn to enjoy today. Take advantage of the life you have and enjoy it!
- It Helps to Be Incredibly Lucky
This is interesting and is true. “Luck is where preparation meets opportunity.” If you prepare yourself for the opportunity, don’t be surprised when it arrives. It’s meant to say that no matter how bad the situation that life throws at you is. Stay positive and push through. Prepare yourself for what’s ahead & take advantage of it when it comes.
Put another way, you might see the declines in housing prices and think, “man, others are so lucky to be buying houses right now. I wish I could, but I’m in debt up to my eyes.” They are lucky but are so because they prepared themselves for the opportunity.
They didn’t know housing prices would tumble. But by staying out of debt, they prepared themselves to take advantage of the situation, whether it be with houses or stocks or something else.
- Action Step: Believe in yourself. Believe that you too are lucky and prepare to take advantage of opportunities when they knock. No matter what happens, find the positives in life. Get out of debt and put yourself in the best shape you can.
Learn from those who are where you want to be. Seek out those that manage their money wisely and pick their brain. Learn from them and then use those tips and techniques in your life as you grow your wealth. Call us to learn more about our 40-40-20 plan and passive investment opportunities that may provide you with a hedge against your investment in Wall Street! 407-494-3329 or contact me direct @ firstname.lastname@example.org
Source: Washington Post