The truth about money might be daunting, and usually the poor and middle classes forbid talking about money.
On the other hand, if you want to think and grow rich, increase your net worth, it begins in your mindset.
It means, you need to change the way you look at and talk about money.
For that reason, we’re going to talk about a topic that belongs to the wealth stage called Control Personal Finances.
In fact, I didn’t know how to control money and I didn’t understand clearly how money works.
So I had to take action…
Introduction To The Truth About Money
My first trigger was going to the bookstore and purchasing the visual book called How Money Works.
In fact, I reviewed this book in the article 7 Book Ideas From How Money Works or you can watch the video.
Now here comes the good part.
When I was reading this simple visual yet substantial book, it slowly showed me the truth about money.
And after sorting out the information, I became hungry to learn in-depth the truth about money of personal finance & holistic wealth.
That being said,
So now, let’s sink into the truth about money and its seven principles you need to know.
7. Everyone Can Reach Financial Goals
You may have heard it gazillions times. Or even worse, you may be saying.
If I had earned more, I’d have saved money and reached financial goals.
Or, if I had won, I’d have had a life I desire.
Listen, it is nonsense and BS!
Because here is the truth.
And in a while, you will understand how…
The Solution Is Discipline
Listen, you have to be organized and disciplined.
The sad truth is, just a minority of people do that.
For this reason, I want to teach you the number one rule in personal finance.
Pause here a while and let it sink… think about it really deeply…
Because this was the number one rule I had to implement into my life. I call it the PYF habit.
I created a firm PYF strategy with several golden buckets.
And I recommend you to read the article Pay Yourself First – The Key Step To Accumulate Wealth. Or you can watch the video below.
You may ask, why do I mention it as a first step?
Well, the answer is very simple.
Because it works…
In the first place, what you need to do is put a certain amount of money aside to build primarily your emergency fund.
Then, in the second place, invest regularly.
The best approach is to transfer automatically that amount to your investment or savings account.
So it doesn’t bother you and you can focus on something more meaningful.
And only at this point, after you pay yourself first, you can pay your bills and other expenses.
It’s easy, isn’t it?
That being said, by doing it, everyone can reach financial goals.
Because eventually, you’ll get used to this habit.
I can assure you, you will love observing how your wealth and net worth is growing…
6. Investment Is Uncomplicated And You Don’t Have To Take Big Risks
You may have heard it everywhere.
- Investment involves risk,
- A higher yield is risky,
- Real estate is risky,
- The index fund is risky…
If you just get started and read these statements, it might discourage you from investing at all.
Instead, you end up saving money, which is bad because inflation will gobble it up.
Look, after reading the visual book called How Money Works, I discovered that investment isn’t scary or even complicated.
There are plenty of options to choose from and you need to stick with those that you feel some passion or interest.
I strictly advocate being a long-term investor and don’t try to beat the market.
It’s a no-brainer, and therefore, I wrote and create a video on this topic called Passive Investing vs Active Investing.
And another thing to remember.
So, I’d recommend again setting up an automatic monthly contribution to your investment account.
And as a sage reminder, strive to decrease your debts on liabilities that don’t generate any cash flow.
5. Knowing Some Yet Important Strategies About Personal Finances Is Enough
Think about this for a moment…
First, it’s enough to understand a few important personal financial terms to control your finances.
To give you an example.
It might sound simple to someone, but I began learning what a Checking and Savings account is.
And when I hit the term PYF or pay yourself first, it was for me a huge Aha moment.
In fact, I wrote the article 11 Basic Personal Finance Terms To Understand Financial Literacy and made a video.
Because you know what?
- Property prices appreciate,
- stocks appreciate,
- art appreciates.
So when you delay your decision, you might end up paying next year more for the same asset that you wanted to buy today.
My recommendation is to start as early as possible.
That’s why I teach my 12-year-old nephew to understand the power of compound interest and monthly rental income.
The earlier you start, the more wealth you will accumulate.
4. Money Is a Choice And Not an Elimination
Pls, don’t do this.
Don’t sacrifice yourself from buying essential things that make you happy.
In fact, you can’t buy happiness. Instead, what you can buy are options. And those options are choices that make you happy.
when you want to have better quality in your life, you might swap your flat for a bigger apartment.
Or to make it even perfectly profitable, do house hacking.
Hence, remember this.
The money truth here is to be crystal clear about what you really value in your life.
And to emphasize again, if you spend mindfully your money on things that bring you a better lifestyle and future return and value, it’s absolutely ok…
3. Wealth Doesn’t Just Mean Enough Money
This is deep for me and so for you. Because the older I’m, I realize it.
And I want to emphasize here something very very important.
It means, you get to understand deeply the value of time.
I wish to begin with all the current skills in my early twenties or even sooner.
To emphasize again.
The earlier you get started, the sooner you can enjoy life without relying on someone else.
But the problem is, society programs your mind to be an obedient sheep to their system.
So I encourage you to take the next step to read the article Multiply Your Time And Income With The Power Of Leverage Strategies or watch the video.
I wish I had a chance to return in time because I’d maximize investing earlier.
And I’d hustle even more to work overnight or on a weekend.
Of course, I do it right now, but the point here is again to get started as early as possible because it’s the holy grail.
Because true wealth is holistic wealth.
It’s interconnected with your…
- family values,
- and financial performance.
It is holistic wealth through your life.
And it leads me to another money truth…
2. The Power Of Investing In Yourself
I can’t emphasize more how important this step is.
This is a big, bigger than you expect. Do not neglect it. Really, it might hurt you in the long run.
If you want to speed up the process, find a mentor.
I strongly believe it doesn’t need to be in person, but a virtual mentor is enough.
In fact, I’ve learned from a few of them and without them, I wouldn’t have been where I’m right now.
In general, they are willing to help you. It’s about interaction and asking for help.
And I want you to remember this wealth principle.
Ponder on it…
But don’t neglect your mental and well-being part.
Because investing in yourself isn’t only about learning how to earn more money.
In the same way, it might be about:
- Investing time to practice yoga in the morning.
- Waking up earlier, enjoying the quietness of the empty room, and hearing beards is an indescribable moment.
The truth about money here is, when you invest in yourself it will provide you with the power of confidence to create any kind of wealth.
And the last most important truth about money is…
1. If You Are a Doer, Wealth Will Show Up When You Least Expect It
First, I used to be so naïve because of my thoughtless investments in dubious systems.
Second, I lost money because of my personal weaknesses…
But I recognized that there aren’t any shortcuts to bypass the direction of wealth creation.
Unfortunately, it surrounded me for a while with the wrong people that believed that to become wealthy it’s about to figure out some shortcuts.
But the most important money truth here is that:
And I’ve already talked about compound interest, which is really the holy grail.
Or the monthly cash flow of your rental properties and slowly growing larger portfolio that will cover all your expenses and make you financially independent.
The truth is, all this takes time.
But when you realize it, when you realize this last money truth, wealth will show up when you least expect it and it sets you free.
Remember it, it really sets you to become free.
It means that the best time to get started is yesterday, and the second-best time is TODAY.
And if you mainly focus on your personal strengths, even better.
Because you are a Doer, you want to start NOW to control your personal finance and grow your wealth.
Time To Take Massive Action
And because you stick with me to the end, here is the most important takeaway.
This is a simple, yet sometimes unbelievable truth.
And as a result, while building your brand around what you love, you become an influencer for others.
It’s just a matter of time.
Because you become a recognizable person of your skills.
So if you follow firmly these seven outspoken money truths, holistic wealth will show up.
That’s all for today’s wealth stage called Control Personal Finances.
By the way, read 7 money myths that may fool your personal finances.
And as a reminder…
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Besides mastering how to Control Personal Finances, I’ve been obsessed with creating well-being and wealth-building strategies.
That’s the reason why I’ve been talking and writing about topics related to the 7 Wealth Stages that helps you identify a starting point toward prosperity.
Because Pat VC helps you to become a Doer.
Thanks for reading or watching and I will see you next week.