Your mindset about money will actively create your own financial reality.
The phrase “It takes money to make money” might be one that you are familiar with. It might be a saying that is frequently used in your family or among your friends, but overall it is a saying that inspires a certain way of thinking. In this post I will talk about several phrases and different mindsets that can have a major impact on your financial position.
In today’s world, wanting to invest is increasing in popularity, especially with the younger generations. Personally I am very passionate about investing and I do not believe in the old narrative of putting your money in a savings account. Nowadays a savings account will get you less than 0.5% interest a year and there are even banks that stopped paying interest altogether. In this article I want to share a few basic, but very key reminders for those that consider investing, but are new to the concept of it.
I am not permitted to explain the rules of the game. Nor to acknowledge whether or not we’re playing one.
Setting up an automatic payment, with the intend to pay yourself, is a great way to improve your saving habits. And from all the little tricks I could think of, paying yourself first is definitely the most efficient one.
The Conservatism Principle actually is a guideline used in financial accounting when recording transactions on the company’s books. But after learning about this principle, I could see how this can and should be used in personal money management as well.
Too many people spend money they haven’t earned, to buy things they don’t need, to impress people they don’t even like.
The Golden Rule of Finance is one that makes a tremendous amount of sense to many, but only a few truly know how to apply it. The above mentioned quote by Will Rogers hits the nail right on the head as it is a great explanation why people cannot live up to the Golden Rule. Here is how it goes:
A candle loses nothing by lighting another candle.
You might be wondering why someone would go through all this trouble and try to educate others who might or might not agree with you, let alone even read your content. Well, I can’t speak for everyone on this one, but here is why I think it is important.