5 Reasons Why You Are Not Rich and 5 Mindsets to Change That
Posted 26th November 2011 at 10:31 AM by lovelysue
Seeing this over and over again, I wish I could text message with this everyone in the world: You can’t be Rich with a Poor relationship with money. The way you approach money, earning money, spending money speaks volumes as to how much you’re going to make and keep. So, if you want different financial situation than the one you are currently in, you’ve got to work on it. 5 Ways to do that:
1. Spending vs investing
Very easy way to find out if you’re getting yourself into a lot of debt but you’re using the money as investment is: does the purchase increase in vlue over time. Does the purchase have a return on investment other than emotional satisfaction? If the answer is no, and especially if it’s a brand new car, it is spending. A good rule of thumb is: 20% spending, 80% investing.
2. Needs vs wants
It ain’t bad to impulse buy something once in a while – to feel better, to reward yourself for a Big win or a small step ahead that you’ve made. they don’t call it shopping therapy for nothing. But – for the most part – stick with what you need. Don’t just buy what you want all the time.
3. Assets vs liabilities
When you spend money and no money are coming back as a return – this means you’ve created yourself a liability, something that pours out your hard earned money. Like subscribing for additional channels on the cable TV.It is important to have more assets than liabilities because when you substract all your liabilities from all your assets, you get your Own Net Worth. And your net worth shows you how rich or poor you are. Do you know?
4. Money vs knowledge
Money des not exist in reality. They are something that we, humans created in order to measure value in a fair way. Coney come in different currencies. But those who are getting richer and richer know that the currency that makes you wealthy beyond anything you can imagine is: KNOWLEDGE. It ain’t money. Knowledge equals value. The more value you have, the more money you can get for it
5. Accumulating vs Building
Rich people know one more thing for sure. If you keep earning money and keep holding them in attempt to accumulate wealth by for example filling up your bath tub with $100 bills, it’s not gonna work. There is inflation, that eats up the value of your money over time. The true power of money is when you employ your money to work for you, when you spend money to get more money back. This is called : building wealth.
Good Karma Coaching
1. Spending vs investing
Very easy way to find out if you’re getting yourself into a lot of debt but you’re using the money as investment is: does the purchase increase in vlue over time. Does the purchase have a return on investment other than emotional satisfaction? If the answer is no, and especially if it’s a brand new car, it is spending. A good rule of thumb is: 20% spending, 80% investing.
2. Needs vs wants
It ain’t bad to impulse buy something once in a while – to feel better, to reward yourself for a Big win or a small step ahead that you’ve made. they don’t call it shopping therapy for nothing. But – for the most part – stick with what you need. Don’t just buy what you want all the time.
3. Assets vs liabilities
When you spend money and no money are coming back as a return – this means you’ve created yourself a liability, something that pours out your hard earned money. Like subscribing for additional channels on the cable TV.It is important to have more assets than liabilities because when you substract all your liabilities from all your assets, you get your Own Net Worth. And your net worth shows you how rich or poor you are. Do you know?
4. Money vs knowledge
Money des not exist in reality. They are something that we, humans created in order to measure value in a fair way. Coney come in different currencies. But those who are getting richer and richer know that the currency that makes you wealthy beyond anything you can imagine is: KNOWLEDGE. It ain’t money. Knowledge equals value. The more value you have, the more money you can get for it
5. Accumulating vs Building
Rich people know one more thing for sure. If you keep earning money and keep holding them in attempt to accumulate wealth by for example filling up your bath tub with $100 bills, it’s not gonna work. There is inflation, that eats up the value of your money over time. The true power of money is when you employ your money to work for you, when you spend money to get more money back. This is called : building wealth.
Good Karma Coaching
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