Money is not the end goal
No matter who you are, we make countless financial mistakes in our everyday life. And money always involves the decision-making process a little more than we think. You need to understand this because sometimes we put money too high on the list for crucial things and end up making bad decisions.
For example, if you’re looking at two different jobs and one job might pay you ten percent more even though you know it’s not going to be a very fulfilling job. You’re not going to like. It versus a job that maybe pays you a little bit less, but you know it’s going to be a fulfilling job. You know that you’re very passionate about that job. Any of us still choose that higher paying job even though it’s not as exciting as the one we like. Those are the small life decisions that you need to think twice about before you take action. Because it is essential to make sure you are having fun and being happy in your life.
Cash flow
Let’s say you own 10,000 acres of massive land somewhere in the world, and although this might be worth two million dollars if it’s not making you any money, it actually might end up being a liability. So you have to pay taxes or various expenses for this land, and if it’s not bringing in cash, if you’re not making any money off of it can end up hurting you financially.
The same thing goes if you own a million-dollar house that doesn’t make you any money. But still, you will need to pay mortgage, taxes, bills, insurance, etc.. Also, keep it in mind if you’re smart enough, you can make money out of renting the house or selling for a higher price after a few years.
Understanding the sales strategy
I suggest reading a few books about this because if you can understand how people sell to you and the strategies they use to convince that will be very important to your life. Whether it’s a house, a car, a sofa at your local furniture store, if you can understand the tactics those sales professionals use, you can sort of reverse this on them and get a better deal.
Pay yourself first
This is a simple idea, but many of us still don’t do this. We don’t pay ourselves. One easy tip to do this is to have the money you make come into one checking account or one bank account and then set automatic withdrawals that go into separate accounts.
This means you have automatic withdrawals going from your main account to a savings account or your investment account so that you don’t have to think about saving money. It almost automatically does it, and then you make a thousand dollars per week, and you have $200 per week withdrawn from your main account that goes into your other bank account. Then you have 800 to work on the usual things. You paid yourself first, and now you can think about paying your bills and other needs. It’s one of the best things you can do to manage money.
Discipline leads to freedom
This actually applies to many areas of our lives. But if you can have discipline, we can end up getting freedom at some point. We can expand this much further than just finances. If you want to become healthier, you need to discipline yourself to eat more nutritious foods. If you’re going to get in shape, you need to discipline yourself to do exercises regularly.
If you want to have better finances, you need to discipline yourself to say no to certain expenses. If you have something vital that you want to do, but other people are pressuring you into doing something else, saying no is the right thing to do. As a person having discipline is very important in life. And it takes a lot of time and effort to build it up.
It’s okay to spend money
You don’t want to be a cheap person. You don’t want to be somebody who pinches pennies and doesn’t spend anything. Everybody has a different philosophy in life, but you should make sure that you are happy and feeling good about your lifestyle. The money you work hard to earn can spend on something important to you, your family, or the community. We talk about saving money and finance all the time, and we think that we have to squirrel all our money away, but there’s no point overdoing that because we are not taking money to the grave with us.
