Anyone can make money. You can post an offer in your supermarket for services you are willing to provide. You can post offers on Craigslist to sell your services. You can sell old merchandise on eBay and other online sellers. You can get a part time job. There are many other ways people can make money. The question is, why do you even need a money mindset if making money is easy?
While the dynamics of making money may be easy, if you are not taking the right steps, you won’t be making enough for it to be worthwhile. You not only want to optimize your money-making abilities, but you also want to keep the money that you do make. Further, you want to make it grow in the fastest possible manner and by the most amount. For this, you certainly want to consider taking on a money mindset.
You need to focus your efforts on opportunities that will give you the highest return. Most people aren’t taught how to do this. They learn it by trial-and-error. Which means, they will likely do the wrong things that will cost them a lot of money. That money took a long time to make.
Learning about the right approaches to money management can counter all of these problems. You can still use the methods discussed in the first paragraph to earn money for yourself, but you want to take that money and get them earning more for you.
Some people will strike it lucky. They will win the lottery, or they create an app that sells for millions of dollars. Can you depend on either of these? Are you going to come into money from a long-lost relative who passed away? Again, this is not something you should count on (unless you know for sure).
Even those “lucky” people who come into money somehow, wind up losing it all because they don’t have a money mindset. Time after time, you read about lottery winners who are broke. The biggest problem for them is all the relatives and friends that suddenly come into the picture. Also, spouses have differences of opinion on how this money should be spent.
People want to make money. You see the lavish lifestyles of celebrities and other famous people and wish you could have the same lifestyle yourself. But, is your drive for money blinding you to what is truly important in your life?
It is often said that if you do something you love, the money will follow. There seems to be something to this because you will approach whatever you love with passion. You’ll get better at it to the point where you are better than everyone else, or at least that is what you strive.
On the other hand, if making money is your driving force, how will you accomplish that? You will simply chase the dollar from one job to the next or from one opportunity to the next. You will get seduced by false offers of riches. Over time, you will look back and see that not much has been accomplished.
In other words, you didn’t give your previous level enough time to develop a foundation. You jumped ahead, and now you are unclear what to do. It’s a concept known as the Peter Principle, named after the person who came up with the idea, Peter Drucker.
Money isn’t as important as many try to make it out to be. For instance, what good is having a high-paying job when you have to work 80-90 hours a week? What kind of life is that? Many people who do this, look back at their lives and wonder why they did it.
While they may have a lot of money when they get older, they likely don’t have anyone to share it with. Another possibility is the heavy workload to obtain that wealth gets them to an early grave. The money they earned is useless to them if that happens.
If you are happy with what you are doing, money becomes a secondary priority. People do need money to live, and you shouldn’t settle to work for less than you are worth. But, when you can balance a decent amount of money with doing something that you enjoy, it will bring a whole bunch of satisfaction into your life.
Choosing someone to manage your finances for you is a big step. Who do you trust and how good are they? If you are lucky to find the right financial advisor, will it help develop your money mindset?
The advantage of having an advisor is they are not emotionally attached to your money. The disadvantage is they are not emotionally attached to your money. It is a double-edged sword and one that you have to monitor very carefully. Too many people make the mistake of keeping an advisor employed even when they are not doing as well as expected.
Ask potential advisors a lot of questions before deciding. If they are not transparent about how they are going to manage your money, it’s probably best to move on to someone else. They should have no problem making their plans for your money known. It’s important to remember it is your money.
This brings up an important point. You are ultimately responsible for the decisions made by any advisor you choose. While they may not be good and end up losing money on your account, you chose them, to begin with. This is why it’s crucial to pick a good advisor. Try to find people you trust who are happy with advisors they have used. Referrals from people you know are the best type of referrals.
On the other hand, you don’t want to micromanage your financial advisor. Good advisors are well trained and know the ins and outs of managing money. If you are constantly calling them to find out why a particular stock or bond is not doing as expected, you are not being fair to your advisor.
Of course, if they set up the plan with one expectation for your entire portfolio and it is not doing what you agreed upon, you need to be critical with the advisor.
You need to be comfortable with the risk the advisor is going to take with your money. Hopefully, they interviewed you about your risk profile and set up a plan with this in mind. It cannot be overstated that it is your money, and you are responsible.
Having the correct money mindset requires great self-discipline and many people struggle with this so if you want to harness the power of self-discipline, check out the featured resource below for a free report; download, read it and take action 🙂
If you look at the profiles of wealthy people, you will find they have a different mindset than others. They know the value of money, and they know the fundamental factors of how to make their money grow. If you are not yet wealthy and feel you are struggling, take some tips from these wealthy people.
An age-old idiom of money is to use compound interest in your favor. Benjamin Franklin was a big proponent of this principle. He was quite wealthy for his time, so it is likely he knew what he was talking about.
The situation is a bit more complicated today with government taxing the growth of money. But, you can invest in an IRA or 401K and have that tax deferred until some future period. Speaking of taxes, make sure you work with a qualified accountant and a financial planner to ensure you are paying the least amount of taxes possible. Wealthy people do this.
Another principle wealthy people adhere to is creating multiple income streams. The more income streams you have working for you, the quicker you will become wealthy. When you have multiple income streams, pump up the ones that are working well and dump the ones that aren’t.
After you are financially well off, make sure you never touch the principal. Set up your principal so that it earns the most it can earn and live only within the means of the earnings on that money.
The final tip is to stay out of debt as much as possible. The debt will drain your savings and your portfolio. There can be smart uses of debt as long as the result of using that debt brings in more money than the debt itself. But, most debt should be avoided to keep your financial outlook stable.
It’s one of the most fundamental skills for people to have, i.e., learning about proper money management. If kids don’t learn it early on, how are they expected to take on a money mindset later in life? When they set out on their own, this is when it will be needed most.
The truth is, they know kids will run up a huge balance and not be able to pay. Parents don’t want to see their kids start out with negative credit, so they end up paying for the kids.
There is a responsibility for parents to teach their kids about money. But, if some parents are not good at money management, how will they be able to teach that to their kids? If the parents are running up high debt, how will that set an example?
Kids also need to learn the proper techniques of portfolio management and how the stock market works as well as other financial vehicles available. This foundation could help the kids make better investing decisions at a time when it is needed.
Too many people are under the false belief that young people first starting out can take on more risk. Bear in mind, these same young people make much less money when they first start out. So, taking on those higher risks means it will take much longer for them to recover financially.
Another problem is both teachers and parents are not trained on how to teach about money. It’s a much more complicated subject than it appears on the surface.
When kids get to college, they often don’t have a clue about money management. This could be a large reason why subjects like their countries’ national debt are low on the priority scale. If they are informed, they may not be as willing to accept the government spending in the manner that it does.
If these college kids get into politics themselves, their training could help them in reducing this debt and keep a fiscal order with policies.
A budget is a great way to get and keep people on track with their finances. It lets you see what money is coming in and what is going out. Obviously, you want the inflows to be greater than the outflows and the bigger the spread, the better.
Credit cards make it easy to buy and defer payment. So when the urge to buy is strong, people justify that they have time to pay it off later. However, do this enough and you’ll find your balances on the credit cards to be much greater than you can manage.
There are people who make budgets but then cheat on them. They end up using all kinds of excuses as to why they spent above what the budget allowed. This is a big reason why people fail with budgets. After they cheat once, it becomes easier to do so in the future.
The key to staying on track with a budget is to focus on why you have a budget in the first place. When you do that, you can say to yourself anytime you get the impulse to buy that it will ruin that future goal. Once people start to see their balances grow due to budgeting, it helps to reinforce and motivate people to stay on track.
If you create a budget and find that the outflows are greater than the inflows, you will need to cut back on expenses or increase your income somehow, or a combination of both. Increasing income has become a bit easier with the internet.
Many people find they prefer working in this sharing internet economy and choose to do it full time. As long as it brings in the necessary cash to stay within the parameters of your budget, you could choose to do this yourself. Just make sure you factor in everything that you are giving up working for someone else.
Whatever you want in life will require discipline to achieve and being good with money and becoming successful is a small part of this. And if you want to know more about harnessing the power of self-discipline, then check out the featured resource below for a free report; download, read it and take action 🙂
People want to make money. You see the lavish lifestyles of celebrities and other famous people and wish you could have the same lifestyle yourself. But is your drive for money blinding you to what is truly important in your life? And, what is money mindset?
It is often said that if you do something you love, the money will follow. There seems to be something to this because you will approach whatever you love with passion. You’ll get better at it to the point where you are better than everyone else, or at least that is what you strive.
You may be successful in the short term of getting that extra dollar from a new job or squeezing a quick buck from your business. But you will constantly be in search for more money.
You could even put yourself into a position where you can’t handle the new job because you lack the necessary experience. In other words, you didn’t give your previous level enough time to develop a foundation. You jumped ahead, and now you are unclear what to do. It’s a concept known as the Peter Principle, named after the person who came up with the idea, Peter Drucker.
Money isn’t as important as many try to make it out to be. For instance, what good is having a high-paying job when you have to work 80-90 hours a week? What kind of life is that?
Many people who do this, look back at their lives and wonder why they did it. While they may have a lot of money when they get older, they likely don’t have anyone to share it with. Another possibility is the heavy workload to obtain that wealth gets them to an early grave. The money they earned is useless to them if that happens.
And having a good work-life balance is becoming increasingly important for people; this is why more and more of us are looking at ways to make money online.
If you can find a way to make money from home you can have a great work-life balance, but it isn’t for everyone. There are many distractions around the home, and you need to be laser focused on your work or your productivity will drop like a stone.
This is why mindset is so important in everything you do and having a money mindset is no different.
Anyone can make money. You can post an offer in your supermarket for services you are willing to provide. You can post offers on Craigslist to sell your services. You can sell old merchandise on eBay and other online sellers. You can get a part time job. There are many other ways people can make money. The question is, why do you even need a money mindset if making money is easy?
While the dynamics of making money may be easy, if you are not taking the right steps, you won’t be making enough for it to be worthwhile. You not only want to optimize your money-making abilities, but you also want to keep the money that you do make.
You need to focus your efforts on opportunities that will give you the highest return. Most people aren’t taught how to do this. They learn it by trial-and-error. Which means, they will likely do the wrong things that will cost them a lot of money.
That money took a long time to make. As people age, they have less time to recoup the losses. It’s also tougher to get jobs when you get older. Companies would rather pay a younger person a lot less money even if they need to be trained.
Learning about the right approaches to money management can counter all of these problems. You can still use the methods discussed in the first paragraph to earn money for yourself, but you want to take that money and get them earning more for you.
Some people will strike it lucky. They will win the lottery, or they create an app that sells for millions of dollars. Can you depend on either of these? Are you going to come into money from a long-lost relative who passed away? Again, this is not something you should count on (unless you know for sure).
The biggest problem for them is all the relatives and friends that suddenly come into the picture. Also, spouses have differences of opinion on how this money should be spent.
However you spend your money, you need to ensure you don’t spend more than you have! Let’s look at that next.
Living within your means is not as difficult as most people make it out to be. It takes some discipline, but it can be well worth the effort. At the very least, you will be able to sleep at night knowing you aren’t burdened with a heavy debt load.
If you have struggled with debt before, especially credit card debt, consider cutting up those cards and canceling the accounts. This is the surest way to make sure you don’t get yourself into trouble with spending more than you make.
Don’t try to keep up with the Joneses. Just because your neighbor is driving a new sports car and is always buying the latest and greatest gadgets, doesn’t mean you need to follow along. What many people don’t realize is that those neighbors are not living within their means. They will eventually run into trouble as they have the wrong money mindset.
If you happen to be straddled with a lot of debt, consider consolidating all of it into one lower payment. The interest on credit cards can be wicked and makes it almost impossible for most people to get out of the situation.
If you cannot obtain a consolidation loan, consider hitting up your family for the loan. This is not ideal as it can cause tension in the family. But, it is better than having huge interest charges added to your balance each and every month. As long as you show your family members a willingness to pay them back consistently, you shouldn’t run into too many problems. Do make an effort to pay them back quickly, however.
You still need to live, and that may require purchasing higher end appliances when the old ones break down. This is why you should always set aside some cash each month as an emergency fund. Try to accumulate six months worth of cash for this.
For high ticket items that aren’t needed right away, consider using layaway plans. Many retailers have brought this feature back, knowing that people are overextended with consumer debt.
If you are struggling, do you think can you change your financial circumstances with the correct mindset? I hope you said “Yes!”
If you look at the profiles of wealthy people, you will find they have a different mindset than others. They know the value of money, and they know the fundamental factors of how to make their money grow. If you are not yet wealthy and feel you are struggling, take some tips from these wealthy people.
An age-old idiom of money is to use compound interest in your favor. Benjamin Franklin was a big proponent of this principle. He was quite wealthy for his time, so it is likely he knew what he was talking about.
But, it makes sense. If your money grows on its own, and the money that you earn ends up growing as well, it’s only a matter of time when this amounts to a decent sum of money. And if you keep adding to the balance, that money will also grow along with it.
The situation is a bit more complicated today with government taxing the growth of money. But, you can invest in an IRA or 401K and have that tax deferred until some future period.
Another principle wealthy people adhere to is creating multiple income streams. The more income streams you have working for you, the quicker you will become wealthy. When you have multiple income streams, pump up the ones that are working well and dump the ones that aren’t.
After you are financially well off, make sure you never touch the principal. Set up your principal so that it earns the most it can earn and live only within the means of the earnings on that money. If possible, add to the principal with as much of the earnings as you can afford, so that the principal grows. Just never tap into it. If you find any shortfalls, consider taking on some temporary work. Once the principal is gone, it’s gone for good.
The final tip is to stay out of debt as much as possible. The debt will drain your savings and your portfolio. There can be smart uses of debt as long as the result of using that debt brings in more money than the debt itself. But most debt should be avoided to keep your financial outlook stable.
Doing all this money management may seem a little daunting, but you don’t have to do it alone; this is where a financial advisor comes in…
Choosing someone to manage your finances for you is a big step. Who do you trust and how good are they? If you are lucky to find the right financial advisor, will it help develop your money mindset?
The advantage of having an advisor is they are not emotionally attached to your money. The disadvantage is they are not emotionally attached to your money. It is a double-edged sword and one that you have to monitor very carefully. Too many people make the mistake of keeping an advisor employed even when they are not doing as well as expected.
This brings up an important point. You are ultimately responsible for the decisions made by any advisor you choose. While they may not be good and end up losing money on your account, you chose them, to begin with. This is why it’s crucial to pick a good advisor. Try to find people you trust who are happy with advisors they have used. Referrals from people you know are the best type of referrals.
When using a financial advisor, be careful not to remove yourself from the process. This is common and should be avoided. If this does happen, then you won’t be adopting a money mindset by using an advisor. You need to hold them accountable which means you need to know what they are doing.
On the other hand, you don’t want to micromanage your financial advisor. Good advisors are well trained and know the ins and outs of managing money. If you are constantly calling them to find out why a particular stock or bond is not doing as expected, you are not being fair to your advisor.
Of course, if they set up the plan with one expectation for your entire portfolio and it is not doing what you agreed upon, you need to be critical with the advisor.
Having the correct money mindset requires great self-discipline and many people struggle with this so if you want to harness the power of self-discipline, check out the featured resource below for a free report; download, read it and take action 🙂
