Am I labeling money as your life force? No. I’m not. But it is essentially the one thing you exchange all your time and energy for. Now, think for a moment. Would you want to treat it worse than your ex-girlfriend?
Especially considering how taking care of your money is surprisingly easier than taking care of your spouse (or getting a Tinder date).
All it takes is slight effort, discipline, and some oversight. And you can drastically improve your money management skills.
Trust me. It’s never too late.
If that’s the case, why does it feel so hard? How come so many people suck at it?
People suck at it because they hurry to bring the pipe without checking the bucket for the holes.
Want to learn how to do something the right way?
First, you must unlearn all the wrong ways of doing it.
For as long as you are functioning under an unproductive mental model, nothing will help you.
So don’t be a fool, and let’s fix the holes together (or you could just buy a new bucket if it’s cheaper).
Reason #1: You Feel Under the Weather Talking About Money
You say you want to manage money well. Then you suffer a mini heart attack discussing your finance. Sadly, penny-pinching without any strategy doesn’t make you good with money.
It only reflects your scarcity money mindset.
If you want to better your money equation, you have to be able to talk about money without any stigma.
Not only does it help you build financial confidence, but it also opens you up to a whole new dimension of practical information that you can put to use right away.
Yet, that’s where most people falter.
• In a survey run over 5,200 people across the UK, around 55% of them confirmed their struggle to talk openly about their financial situation.
• No, it’s not just this one study. Another research covered by the Turbo #RealMoneyTalk showed that 51% of respondents would not talk about their finances with either their friends or family.
Whom to blame? I’ll put my money on our inefficient money conditioning and lack of financial literacy. How to get by it? Simple.
⁃ Read more about money.
⁃ See how those rules apply to your own life.
⁃ Adapt and learn more.
You never know — doing something might be a better strategy than not even talking about it!
Reason #2: You Don’t Know Why You Are Doing What You’re Doing (Other Than Paying Your Bills)
By limiting all your efforts so you can only earn a little over your living expenses, you set yourself up for a world of pain later.
And I’m not sure if frugal living can dig you up from there.
Of course, I’m not saying everyone should quit their 9–5 to start a business. That won’t be realistic. All I’m saying is that there’s no excuse why you are not preparing yourself for a much bigger payday along the road.
Let me ask you something.
When was the last time you tried to learn newer skills to move up the ladder as fast as possible?
What are you doing now, other than meeting your daily tasks, so you can secure an early retirement to live your life on your terms?
If these questions made you uncomfortable, you might be suffering from boiling frog syndrome.
And the ensuring sense of security you feel receiving a less challenging paycheck might not last for long, as long as you are easy to replace.
Reason #3: You Get Stressed Seeing Other People Succeed
When you want to be good at something, you have to be willing to learn from others who are doing it better than you.
Unfortunately, most of us take the other route and start feeling insecure about other people’s success while making excuses for our lack of results.
Make no mistake. Playing the victim and complaining about everything under the sky can get quite addictive. After all, it gives you something to hide under and feel justified in your narrative.
However, what this toxicity can’t do is get you a better life. That would require you to scrap your fixed mindset for a growth mindset.
So when you see someone doing what you dream of doing, you:
• Get inspired instead of feeling insecure.
• Understand what they are doing and why they are doing it.
• Don’t hesitate to reach out and ask questions.
Plus, it helps you build relationships with the right people.
Reason #4: You Are Spending More Than You Are Earning
Don’t get broke trying to look expensive. Here, let me explain. It’s not that complicated.
In a capitalistic society, you earn money by providing the market with some value. Likewise, you have to spend that money when you need to consume some products or services from the market.
So here’s what it looks like
Your net worth= (The value you produce — The value you consume)
When you are spending more than you are earning, it shows you are consuming more than you are providing. It means you are on the wrong side of consumerism.
That’s not a sustainable approach.
Okay. So how go about it?
• Fix your production: Ask yourself. How can you produce more value using less effort? Have people done it before? Learn from them.
• Fix your consumption: Dial back your ego and stop buying things you don’t need to impress people on social media. Track how much money you are spending on depreciating assets.
Reason #5: You Are Saving Just for the Sake of Saving
It’s understandable if you save for when it’s rainy. But what if the safety net you spend your entire lifetime building gets weaker with time?
That’s what happens to the money you save. It loses its value year after year, thanks to taxes and inflation. You can beat inflation and bear taxes if you learn how to use your money to make money.
The only way to do it safely is to invest in appreciating assets.
In that case, your easiest option would be to invest in shares. And again, if you ask yourself the right questions beforehand, you might even manage to score substantial side income.
Money management is not about money. Right? It’s about emotion. It’s about goals. And lastly, it’s about fear. The more composed, confident, and well-prepared you are, the better financial calls you make.
Now the choice is yours. Do you want to keep things as they are and be at the mercy of your luck? Or are you willing to take charge and do your best?
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