Life is easy if you understand money. But, on the other hand, life is tough if you don’t understand money.
The knack for understanding money does not require genius-level Intelligence. Instead, it’s a collection of straightforward lessons that, taken separately, are simple enough to understand yet when combined, create a superpower.
You are the boss; money is your servant. Avoid flipping that equation since many very intelligent people have already done so to their detriment.
On Buying Stuff:
Poor folks buy things. Middle-class people buy homes. Wealthy people invest their money and buy income-producing assets.
We end up being owned by the things we “own.” As a result, people tend to be unhappier and more worried as their possessions increase. On the other hand, individuals are happier and more content when they own fewer material possessions and spend more money on experiences, such as traveling or learning new skills.
Dopamine, the pleasure hormone, may be quickly and easily produced by shopping. However, the same molecule is released when we enjoy food, engage in sexual activity, use drugs, or complete a task that makes us feel good. So be mindful and choose wisely.
Incoming funds are necessary.
It supports your way of life and provides for your family.
Most people serious about improving their quality of life create additional income sources since incoming cash flow is so crucial.
The king is cash flow. Evaluate your income first.
Your savings rate, not your income, determines how long it will take you to achieve financial independence. What matters is how much you keep, not how much you earn. Saving more money will hasten the process of becoming financially independent. Spend less, save more.
Contrary to many sales offers, there are no shortcuts to financial success. Put bluntly, that’s someone else making money off of you.
The obvious ones when it comes to earning more money are professional aspirations.
Nevertheless, setting personal goals makes you the sort of person who makes more money and maintains and increases it.
We are all playing games. Ignore those who play status games. Attacking players of wealth-creation games allows them to advance in status.
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