-2.7 C
Washington
Tuesday, January 18, 2022

11 Secrets On Money You Need To Know

Date:

Share:

- Advertisement -

Secrets On Money – In society, money is a fundamental tool for trade. We use the money to trade for something that we need. But as time has progressed, the purpose of money has also evolved. Today it’s not only a tool of trade, but it’s also a way that value is measured. Because of this, it’s fundamental that we rid our minds of some misconceptions about it. Additionally, we need to know some hard truths about money, that we never want to hear. That’s why our feature today focuses on a long list of brutal truths about the money you need to know. So stay tuned.

11 Secrets On Money You Need To Know

1. If you aren’t wealthy at 20, it’s not your fault, but at 70, it’s probably your fault.

Everyone’s prime age is said to be their 20’s, but that doesn’t mean that you’ll have your finances figured out. There’s only a 1% chance that you’ll end up being wealthy in your 20’s, and even that is left to the chance that you’ll stumble over unexpected riches, like an inheritance or a lottery win. And we all know the chance of that happening is quite slim.
Wealth isn’t something that can come from an overnight success. It’s a process of compounding your income over time that will ensure your success by the time you retire. Picture this, if you started work at the age of 16, and you were very mindful about saving, by the time you’re due to retire, you’ll be worth almost 2million. That’s if you kept up the saving spirit throughout your journey.

If you choose to be more aggressive with your finances and go into more risky investments, you’ll end up being worth much more than 2million. This strategy can easily be applied by people living in developed or developing countries. As you think about making wealth, you should start young when you’re more flexible to adverse outcomes.
Because of this, I’m a firm believer that Bill Gates never lied when he said if you were born poor, it’s not your fault, but if you die poor, it is.

2. Debt doesn’t magically disappear.

For whatever reason you had, you went and acquired a loan from a bank or a friend. Everyone dreads debt repayment; it’s hard, and we hate having to give our hard-earned money away, even if we borrowed it. However, debt doesn’t give us many options but to pay it back. There are two most preferred methods you can use to relieve yourself of debt. That is, one, you can arrange your debt in terms of size and start paying back the smallest debt to the largest. The other option is that you can pay off the highest interest rate debt first, then work your way down. Whichever method you choose to use, it’s better than the wishful thinking that your debt will magically disappear. Which, by the way, never does.

3. Ideas are useless.

- Advertisement -

So many people place a great deal of emphasis on your idea being the heart to success, but actually, your ideas are useless. You’ll need to have the persistence to execute the great idea continually. And that’s what will set you apart from the rest. Because the truth is, 99% of the population is walking around with a million-dollar idea. But most of them are too lazy and would rather sleep on the idea, and do nothing about it.

This crazy concept has been tested by a shark tank participant who won himself a great deal. He goes ahead to explain in his book some ideas that can literally win you the world. I can assure you no one has made a single effort to try and implement the ideas. You see, you should stop thinking that people are out to steal your ideas because, truthfully, there are more procrastinators than opportunists. Don’t cut ties with friends because you feel they’re stealing your idea. I’d rather sit back and watch for how long they can keep up the hard work.

4. When it comes to expenses, always expect the unexpected.

No matter how frugal you want to be with your financial planning. When it comes to expenses, something almost always catches you off guard. It might be a close friend’s party you forgot to budget for or a ticket you got from parking at the wrong spot. The best way to describe this type of expense is disruptive expenses. Which usually arise from known concussions that are irregular in maturity. Like a girls-only vacation which doesn’t always take place every Christmas holiday. The most effective way to tackle these unforeseen expenses is to always try and be prepared. Have a saving stash that tackles any other matter aside from the ones you are aware of. You could set a target to save a small amount every month so that your December income doesn’t all go into buying Christmas gifts.

5. Working hard is the least important thing.

A very close cousin to our last feature is the insane idea that you have to work tirelessly to be successful. The sense of achievement that comes with working 12 hours long shifts usually is an industrial worker’s mindset. The dream is finding something you love and figuring out how to make it easier to do every day and make money from it. You’ll realize that with this ease comes a compounded result which you can further reinvest.

6. Great investors spend most of their time reading.

Unlike the popular misconception that successful investors know everything and spend the majority of their time in meetings, is far-fetched. Are investors like Warren Buffet considered as less socially interactive? As they spend most of their time reading: they read company financial reports, business strategies, and even annual reports. All this is to ensure that they understand the inside and out of the company before investing in it. This, however, is the complete opposite of short-term investors, who usually go with the hype. They’ll invest in crypto because some shady financial news channel claims that it’s the best investment in 2021.

- Advertisement -

After which, they’ll sit around their computer desk checking how the currency is dipping, and there isn’t any hope for profit. Successful investors don’t usually do these things. They mostly do their due diligence before investing and wait until the time elapses to ensure they secure profit. Whatever happens in between that five-year time frame is unnecessary to make them panic. If you’d like to have a better investment, read the book; richer, wiser, happier; How the world’s greatest investors win in markets and life by William Green.

7. Excuses, simply won’t work.

Let me explain, in your lifetime, both bad and good luck will even themselves out. Even though it’s hard to believe that all that strife will come to an end, it does over time. There isn’t any one person’s life that is full of misfortune. But, at some point, things always turn around for the better, and you may experience a stroke of good luck. But don’t come to me just yet with the sob stories of people who live in misery and, unfortunately, lost their lives. I acknowledge fully that there are exceptions to this rule. With some having a lifetime of good luck while others experience the latter. None the less these events are no reason for you or anyone else to wallow in self-pity and excuses.

Some people have made extreme profits and gains during times that could be their worst. Like the businesses that stood the test of time when the pandemic hit. By venturing into untapped businesses or moving their businesses only to ensure that they still reach their customers. Surely no country lockdown could stop them from realizing their dream, and that’s impressive. At the end of everything, it’s up to you to choose whether you’ll move forward or remain stuck in your circumstance. All in all, being unproductive, failing to meet deadlines, or closing down shop because of bad ordeals isn’t a good enough reason.

8. The most important investment you make is in yourself.

The greatest investment you can make in this world is in yourself. A famous Chinese philosopher believes in Kaizen, a state where you continuously progress and improve your skills and wholesome self. To earn that big check, you have to transform yourself into that person. Even in sports, everybody can be a sportsman. Only until you do what other athletes are doing – putting in the hours and work training, will it always remain a dream. At the end of the day, as you work towards making yourself better, you’ll, along the way, increase your skills, improve your health and fitness, and even better widen your clientele base. Besides, this will be the one investment you’ll have complete control over. I don’t know about you, but personally, I’d choose to invest in myself any day, instead of focusing my time and energy on building someone else’s legacy. The system has prompted us into believing in employment that we forget we are our best resource. It’s about time we change the narrative and invest more and focus more on ourselves.

9. Saving without a plan won’t cut it.

Everything we do requires direction and steps towards achieving whatever goal you have in place. Money too requires the same discipline where you can jolt down a well-outlined plan for your money. Only the financially illiterate make money and spend it without a plan. Even if you intend to save that cash, you can’t do it before weighing what is more important first. Like you can’t put all your money into retirement savings, and you have nothing to sustain you for the year.

- Advertisement -

Similarly, you can’t save money while you’re drowning in debts. That’s why it’s essential to have a plan because this plan will assist with making decisions after weighing the importance, urgency, and convenience. You’ll have to look at all these angles before deciding on how best to utilize your money. It’s not too late to start if you haven’t been tracking and planning for your finances, you can as well start today, bearing in mind saving without a plan will get you nowhere.

10. Sometimes you have to spend money at the moment to save it in the future.

Spending in the moment sounds a little bit too tempting, but spending on quality items will save you a fortune in the future. This means that purchasing that good-quality leather coat that will last you for years is better than acquiring the cheap outfit that will wear and tear in no time. That’s just the reality of life that isn’t taught in school. By investing in high-value items, you’ll be in a better position to allocate your funds more so, even be a more conscious spender instead of swiping your credit card at every catchy item you come across on the way.

11. Spending mindlessly adds up.

Sometimes we spend our cash mindlessly on the little things like grabbing a coffee on our way to work or ordering takeout food. These minor expenses, could have been allocated towards establishing a retirement fund, don’t you think? Very few of us prepare for the future and expect that everything will fall into place eventually. A coffee worth five dollars a day will cost you a tooth by the end of the year. Imagine having invested that cash in a savings account. By the end of the year, you’ll have about 1680$ in your account plus dividends and a better track record that will allow you easy access to business loans.

If you feel where I’m driving, you’ll cut back on all the unnecessary expenses. And if you do, you’ll get to enjoy a well-cushioned retirement. It doesn’t take much really, and you don’t have to squeeze your life but try and get rid of a few of the expenses you can do without. This summarizes our topic for the day. You can try applying one or two points and let us know how things work out for you. I am sure it will help you achieve financial freedom and will also guide you to make better financial decisions along the way.

RELATED: 14 Rules of Money Management

- Advertisement -

━ related articles

How I Tricked My Brain To Save More Money

How I Tricked My Brain To Save More Money

0
Save More Money - Between 2020 and 2025, global wealth is projected to rise by 39%. At first glance, it doesn't seem like shocking...
Think and Grow Rich by Napoleon Hill Summary and Analysis

Think and Grow Rich by Napoleon Hill Summary and Analysis

0
Think and Grow Rich by Napoleon Hill Summary - No matter which tracks you choose to follow, to get rich: becoming a trader, a...
The Rule of 50/30/20: How to Budget Your Money More Efficiently

The Rule of 50/30/20: How to Budget Your Money More Efficiently

0
The Rule of 50/30/20 - What if I told you there is a way you can exponentially grow your money this year, would you...
How to Get a Higher Paying Job

How to Get a Higher Paying Job

0
How to Get a Higher Paying Job 1. Never discuss the salary until the end of the interview. When you are going to a job interview,...
8 Skills That Will Make You Rich

8 Skills That Will Make You Rich

0
Skills That Will Make You Rich - For some people, this will be hard to believe but each and every person has the potential...

━ popular articles

Top 8 How to Increase Financial IQ

Top 8 How to Increase Financial IQ

0
How to Increase Financial IQ  - Financial intelligence has a lot to do with making the right financial decisions depending on the situation you’re...
12 Bad Habits That Keep You Poor

12 Bad Habits That Keep You Poor

0
Bad Habits That Keep You Poor - The list of human desires is never-ending. We crave a variety of items that may or may...
14 Rules of Money Management

14 Rules of Money Management

0
Rules of Money Management - Philosopher and Irish statesman Edmund Burke once said, “If we command our wealth, we shall be rich and free....
4 Rules Financial Literacy for Beginners

4 Rules Financial Literacy for Beginners

0
Financial Literacy for Beginners - Financial education is the possession of the set of skills and knowledge that allows an individual to make informed...

Leave a reply

Please enter your comment!
Please enter your name here