Five practical ideas that helped me sort out the financial side of my life. No promises of quick money.
How do you reach a new financial level?
A lot of people are dealing with serious money problems, and those problems spill over into every other area of their lives.
It is hard to be happy in a relationship under constant financial stress. It is hard to take care of your health when there is not enough money. The same goes for everything else.
I want to share a few practical ideas that helped me a great deal when I was sorting out the financial side of my life.
1. Set yourself up for a long marathon. You need patience and good judgement.
Anyone who promises you quick money and huge returns this very month is usually earning off the referrals they invite, and has no capital of their own.
It is far wiser to give up on cutting corners and grow patience and consistency instead.
Every wealthy person I have ever talked to built their fortune over years, sometimes decades.
2. Understand how the law of large numbers works. When you start putting money aside, the amounts will be tiny at first, and the interest they earn will be pennies. The point is not to kill your savings at that stage, but to keep going.
Do the math on what happens to your investments if you hold that line for 15-20 years. You will like the answer.
3. You can influence your income. If you are in a job with no career prospects and no way to affect what you earn, it may be worth thinking about changing jobs.
If you run your own business or work as a freelancer, chances are you do not hold 100% of your market.
A country’s economy and GDP can fall a thousandfold, but if you personally find 10 clients instead of 5, your business and your income double.
4. When you start saving and building capital, keep a share of your income for joy and rest. If you shut the pleasure valve completely, you will most likely not finish the marathon.
You need pauses, breathing room, and sensible emotional purchases that make you happy and reward you for the discipline you are putting into a better future.
5. Keep learning. I have been studying financial literacy since I was 17. I am 33 now. Every year I learn a mountain of new things about money, business, investing, and the psychology of large numbers.
Do you agree that when money is badly short, every other area of life sags and suffers along with it?