What is “The Dichotomy of Money Behaviors”, and how will it help me succeed with personal finance? Every day I see how behavior money issues can be on one spectrum to another from person to person. The society we now live in is constantly in a financial battle. Through one media source you are getting advice to save money, but another source around the corner is telling you to spend now. One of the most popular websites on how to manage money, has a revolving ad so that its readers can get credit cards. (Really!)
Individuals must remove all the white noise from the decisions influencing us that we get from the media. For example everyone who works in sales they wish to make money; by getting as many clients as possible. They will pay for marketing lists, to advertise on social media, to do whatever it takes to get clients. They are trying to make money to save and spend money. Their clients are in the same boat, battling every day to protect cash flow from being taken away. Read below how you can see my feelings around the dichotomy of money behaviors.
Hey have you ever seen millionaires driving around in Ferraris, wearing Gucci scarfs and rocking Louie V. sunglasses every day of the week? Do you stop to notice that the only people who are flashy are the TV entertainers because they are getting paid to promote a brand? Well I believe people who are flashy all the time in regular neighborhoods, are not making a living as entertainers in the public eye thus living above their means. People with self made wealth do anything possible to stay under the radar for the most part. I can attest that most millionaires care more about continuing their high income and assets far more than living a flashy lifestyle.
What experience have you witnessed with someone who is always flashy? Buying the latest things, just to say they have something new. Trading up cars every 2 years, because they want to impress others. I cannot shake the feeling that those people always being flashy equals them living above means.
The standard definition of flashy is -stylish and expensive-looking in an obvious or ostentatious way.
Behaviors give us the reasons why we succeed or fail.
One of the basic foundations behind getting your personal finances in order, which many people need to look at a bit differently, is behaviors. The basic misunderstanding that many who are struggling with money issues, is that they focus on the money as the problem, but in reality it is the behaviors. When we have routines that complement positive actions around how we handle money it sparks a change within us that correlates back towards money. Whether you struggle with keeping expenses down or a habit of saving a specific amount every month, it all boils down to what you do every day.
By realizing your actions and faults you have taken the first step towards accepting the bad behaviors ruining your life. The next step in this process is to begin with 1 positive money behavior and consistently perform it for at least 45 days. It could take a lot of effort, but without effort you will never see gains with personal finance. Money management is only tricky when you are in denial of your abilities behind controlling the old mighty reflection in the mirror. Granted it might not seem all that difficult to say no to yourself, but after 5 days attempting to change a bad behavior people tend to break down and revert back to bad habits. Money101 is based on a class that teaches you that choices in the right direction will always be the beneficial way to live a stress free money life.
How serious are you about getting out of debt? Well if you follow the debt rules you will hopefully kick American Express to the curb and drown discover card in the fish tank. The secret to the debt rules I will share with all of you today is first a disgusting desire to be free from all of these imaginary bosses telling you where to send those fabulous green dollars.
Do you want to continuously fund the credit card companies profit margin or would you rather increase your household profit margin? I think we all know the answer to that question, but it will take a long time coupled with an intense commitment to complete your debt repayment journey. If you are willing to step up and live life far from the average person then follow the debt rules below I will lay out for all of you. I will tell you a few strategies and far from average methods, but ultimately it will all be worthwhile.
How can you develop financial fitness? Well it is simple by working every dollar that crosses your hands and taking the time to see how the money plan you have now will give you what you want later. Real financial fitness can take place, but the trick is you have to want to work those dollars. Many people love working out physically, and on the flip side give up financially. Most of the readers of this blog are in the 25-35 age range, and that means you guys are abundantly blessed with physical energy. Now if you could just direct some of that energy to daily financial fitness workouts, life can be a nice walk in the park.
I think there is a misconception behind what an asset is and what a liability is? The truth behind assets and liabilities is that one puts money in your pocket while the other takes away money. If you question this monetary foundation then please reevaluate the stance on how to distinguish both of these financial terms.
If you can early on capture the real essence of the assets and liabilities game you will succeed with money and possibly have the freedom from worrying about money. The real conundrum that can be simply solved is to ask yourself before a purchase will this put money in my pocket or take away. That shiny new car might seem to many as an asset, but it is really a liability. Why you may ask because you then have to fork over thousands of dollars per year now after owning it that you didn’t have to before owning it. Hence your cash flow is now affected negatively. The costs include insurance, car payments, gasoline costs, maintenance costs. Before you signed on the purchase order dotted line, you never had to worry about having the money for the newly found car costs.
Money should drop from the sky to your piggy bank.
After reading many books, hundreds of blogs, and hundreds of financially related websites I have come to decipher the 4 basic principles of personal finance.
What do you think of this mantra, Life is a beach. I grew up seeing this phrase on hundreds of T-shirts as a kid. I sort of got the message, but now that I am an adult I get it with complete conviction. It is a modern version of the phrase that goes like this, Life is what you make it.
But what some people cannot see is that we control, if our life becomes a beach or if life becomes a desert. Imagine trucking along life in the Sahara desert trying to reach the imaginary pool of drinkable water? Well that is what happens when you do not take money management coupled with a dedication towards investments seriously. The destined plan for you will be a life of always playing catch up while working for the benefit of others. Who are the mysterious others you are giving your paycheck too? Well it’s really simple to answer, just open up the random bills sitting on your desk. The companies who hold all of your debt are your new bosses, on top of bosses you already have at your day job. I personally do not want to be told what to do by anybody, and that message goes directly to Chase and MasterCard. Every time you consume junk on debt, you are adding new bosses that then get to take your extra dollars every month.
When you think of things in this new light then you will realize that it is just not worth it. Buying a product on credit card debt that you could not afford is the end of freedom. Hey buddy do you know you just signed up for a new boss to tell you where to send you’re hard earned cash. This is the sad reality that we are facing in this society. I will do anything in my power to cut ties with all these fake bosses who control my wallet. Now the million dollar question is will you do the same given the opportunity. Can you really say good-bye forever to American Express and Capital One. This year alone I cut up two credit cards I have not used in over a year. Why did you do that you think to yourself, because maybe you can use the credit card for a rainy day emergency? The final answer to the question is because having it is an added level of temptation I do not want or need in my life. I live on cash baby and so should you.
I think when you reach a certain point in life, that all those added risky money moves should be abolished forever. The habits you choose here and now will make or break you. By having an emergency fund in place and 2 debit cards to cover you in case you ever need emergency money, these are the proper steps needed to live life stress free. No debt is the equivalent of life is a beach instead of life is a bitch. Get it good; now get things in check my friends.
To put it in prospective see below for an example:
Weekly Restaurant Bill of $50 dollars X 52= $2600 X 10 years = 26,000.
Plus costs of putting it on a Credit Card with interest
Plus costs of losing out $$ in opportunity cost with investable gains on money
Comment if you believe that your life is a beach or if life is a bitch?
