wealth

09
Mar
2023
Ways in Which Rich People Think Differently

Ways in Which Rich People Think Differently

Reading Time: 7 minutes

How many athletes, movie stars, heirs and lottery winners do you know who have gone from filthy rich to flat broke? Although it is hard to create massive wealth, it is even harder to maintain wealth over a long period of time. Whether it is creating or maintaining wealth, the secret behind it is having the correct mentality. The truth is that rich people think differently than the average person. So, if you want to be wealthy, you have to have the correct mindset. Find out some ways in which the rich people think differently from the average people.

Rich Seibold, author of “How Rich People Think” spent almost three decades studying the thoughts, beliefs, habits and actions of the wealthy. He interviewed 1,200 of the world’s wealthiest people and found out that the difference between the rich and the average person is not about the education, background, gender, age or any other factors but rather lies in the mindset.

1. Money is GOOD vs BAD

Most people have been brainwashed to believe that money is the root of all evil. The bible has been misquoted multiple times by many believers.

For the love of money is the root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.

– 1 Timothy 6:10

A closer look at the passage indicates that it is not money that is the root of all evil but the love of money. There is nothing wrong with money itself. It only becomes evil when faith is discarded, and when the quest for money involves greed, deceitful means and hurts others in the process.

The rich understand that money is just a tool. Money is needed to buy food and to pay the bills. A life of abundance means having enough to be able to share it with others. In fact, the world’s billionaires are also the biggest philanthropists. Just think about how many people you can help if you have the wealth to do so?

2. CREATE vs ACCEPT your destiny

Most people think that they are poor because it is their fate to be poor. Their parents are poor, their grandparents are poor and so they are destined to be poor. They are experts at the “blame game”. If something bad happens, they will blame it on the government, their boss, their friend and their parents. They will blame it on anyone, everyone or anything around them but themselves. It is either the fault of the wealthy or the economy. They justify the situation as part of their destiny.

If you’re born poor, it’s not your mistake.  But if you die poor, it’s your mistake.

– Bill Gates

The rich understand that poverty is nothing but a state of mind. The rich believe that they create their own destiny. They control the steering wheel of their life. Neither destiny nor luck has something to do with it.

3. Dream of the FUTURE vs long for the PAST

A lot of people believe that the good days are behind them. They often struggle with unhappiness and depression. “If only I am younger…, if only it’s not traffic…, if only I have the money…”, their life is full of regret for all the things that they should have done then. They long for the days that have long been gone.

Rich people on the other hand are future-oriented. They know that they cannot change what happened in the past. All that is left to do is to learn the lesson and move on. What is important is what lies ahead because they know that their future is in their hands. They set goals and deadlines. They know that success starts with a vision. Long-term planning is how self-made millionaires are created.

4. Earn doing the things you LOVE vs things you do NOT like.

Many people are working on a job that they don’t like. They do it because they need the money to pay for their bills. They are burdened by mortgage payments, loans and credit card debts. In addition, changing jobs means starting over again. It involves risks and possibly a series of rejections. That is why many are scared to brave the transition.

Rich people on the other hand took professional risks to pursue their passion. They believe that passion is the key to success. Some argued that the rich can pursue their passion because they can afford to do so. But according to the study of rich people made by Thomas Corley, author of “Rich Habits”, it took the rich an average of 12 years of doing what they love before they become wealthy.  This means pursuing passion comes first in wealth accumulation and not the other way around.

5. SPECIFIC KNOWLEDGE vs FORMAL EDUCATION

Most people think that the level of education is directly proportional to wealth. The higher their education, the more chances they have in getting wealthy. While opportunities do increase for people with a master’s or doctorate degrees, higher education is not that critical in acquiring wealth. In fact, almost one-fourth of the world’s wealthiest people did not finish college. It does not mean that the rich stopped learning altogether. That’s not the case. The average millionaire read at least two books per month.  The difference lies in the kind of knowledge that they acquire.

The rich acquired their wealth through continuous acquisition of specialized knowledge. Napoleon Hill in his book “Think and Grow Rich”  stressed the importance of specialized knowledge and lifelong learning as the key to acquiring wealth.

There are two kinds of knowledge.  One is General, the other is Specialized.  General knowledge, no matter how great in quantity or variety it may be, is of but little use in the accumulation of money.

– Napoleon Hil

6. To BE something vs DO something

Many people believe that success and wealth is something that you pursue by being busy and doing something. They set goals and come up with a list of the things to do to become successful in that endeavor. And then, they look for results and ask themselves what went wrong.

The rich understood that success cannot be chased. Instead of asking “what do I have to do?”, the correct question is “who do I need to become?”. Stop focusing on what you need to do instead focus on what you need to become. If you want to be wealthy, study about wealth and finance then apply what you learn. If you are looking for the perfect partner, ask yourself first if you are the ideal partner. Educate and invest in yourself. Improve yourself first and success will follow you.

Success is not something you pursue.  What you pursue eludes you.  Success is something you attract by the person you become.  If you want to have more, you must become more.

– Jim Rohn

7. INVEST vs SAVE

Many people are scared of investing. Most of the time, they are scared of failure. They are scared of the unknown. Instead, they cling to their cash or place them in savings accounts where they can easily see and access their money. However, cash is always a bad investment as long as there is inflation. Rich people know this. They also understand how to make money work for them. This is why they invest.

Rich people invest their money on assets such as real estate, businesses, bonds, funds and stocks. In the long run, the investments that they planted will start bearing fruits on their own giving them more money in return. The poor on the other hand, will continue to work for money and save only to wake up one day to realize that the money in their savings account has already lost most of its value. This is the reason why the rich are getting while the poor are getting poorer.

8. LEVERAGE vs HARD WORK

Many people think that hard work is the formula to creating wealth. They work from 8 to 5 even longer, exhausting themselves thinking that someday their hard work will pay off.  However, the rewards to working hard are limited to the number of hours of work they put in. Wealth is created not by working hard but by working smart. Working smart means using leverage.  Leverage means using other people’s effort and resources to build assets.  It is an essential principle in creating wealth.

To be wealthy, you need to learn to start using other people’s time, money, knowledge and expertise. You cannot do it all by yourself.  Leverage allows you to grow and build your wealth faster without being restricted by your own capabilities. Collective efforts will be more productive than doing it all alone.

9. Focus on SOLUTIONS vs OBSTACLES

Look at the glass below? Do you see it as half full or as half empty? Rich people will look at the glass and think that it is half full. They will then look for ways on how to make it totally full. On the other hand, average people will think of it as half empty. Instead of looking for an opportunity, they would rather think of reasons why it is half empty and complain about it.

Image by Gerd Altmann from Pixabay 

If you want to become rich, you need to get rid of all those negative things in your mind. Instead, look for opportunities or solutions on how you can make the situation better. By focusing on the positive, you are actually doing something to address the situation which is much better than standing still and complaining about it.

10. FREEDOM vs STATUS

Many people associate money with status. They see wealthy people using expensive stuff and automatically their brain interprets it as power-prestige. Money is seen as a tool to show one’s status in life. This money belief is one of the reasons why designer brands are a billion dollar industry. Even average people who cannot afford to purchase designer stuff buy them just so they could flaunt the huge logos for everyone to see.

Wealth for the rich is not about status but it is all about freedom. Being wealthy means having the freedom to choose the type of house they wish to live in, the kind of food they want to eat, the model of car they want to drive, the quality of clothes they want to wear and even how they wish to spend their time. The list of choices go on and on. Money does not just buy stuff, money buys choices.

In a nutshell, the rich mentality is so different from the lottery mentality. The rich don’t just wait to win the lottery to become rich, they create wealth in their own hands. As long as you have the correct mentality, you too can become like one.  If you change the way you think, you can slowly change your life.

Feature Image by Gerd Altmann from Pixabay 

First published in Pinoy Smart Living 02.10.2018

Posted by A.L. Jonas in Financial, 0 comments
19
Jul
2022
Your Mindset Affects the Direction of Your Life

Your Mindset Affects the Direction of Your Life

Reading Time: 3 minutes

Your mindset affects the direction of your life. It determines your future. Your mental attitude and disposition will lead the way to either your success or failure in life.

Growth Mindset vs Fixed Mindset

A growth mindset is an underlying belief that you are in control of your destiny. Thus, the power to change things is in your hands. On the contrary, a fixed mindset just accepts what is given. It focuses on what you do not have.

Remember the story of the tortoise and the hare? The hare was so sure that he would win that he slept during the race. The tortoise on the other hand, believed that if he worked hard, there is a chance that he could win the race. Despite the odds against him, he was not afraid of failure and tried his best to win the race. Do you remember who won in the end? Was it the tortoise or the hare?

Youtube video by Pinkfong

The hare and tortoise exemplified the difference between a fixed mindset and a growth mindset respectively. Their mindsets ultimately determine their success and failure.

Carol Dweck, a psychologist and researcher at Stanford University, stated that the two mindsets lead to different behaviour and thus different results. In reacting to setbacks for example, a growth mindset sees failure as a way to improve while a fixed mindset will be discourage and ultimately give up.

For example, as a student if you are not good in Math, a fixed mindset will just accept that Math skills are an inborn talent. It is either you are good at it or you are not. A growth mindset believes that the brain can be developed. Thus, even though you are not a Math person, you will try your best to develop your skills. As a result, persons with a growth mindset are more likely to maximise their potential.

A growth mindset is an integral part of a success of an individual.

Scarcity Mindset vs Abundance Mindset

Stephen Covey, in his best-selling book 7 Habits of Highly Effective People, defined scarcity mindset as a belief that there is simply not enough for everyone. People with scarcity mindset “see life as having only so much, as though there were only one pie out there. And if someone were to get a big piece of the pie, it would mean less for everybody else.“

One indicator that you have a scarcity mindset is if you are sad or jealous if a co-worker gets a pay raise and you did not.  It is like a feeling that somebody else got the raise and there is nothing left for you.

If you spend the whole of your pay cheque as soon as you receive it to buy stuffs you don’t even need or to spend it on partying, travelling or any kind of entertainment even though you don’t have enough money is another example of a scarcity mindset. Moreso, if you justify your spending, saying that “if I will not enjoy my life now when I am still young, I will never have a chance later on.” This kind of mindset focuses on short term decisions.

An abundance mindset on the other hand focuses on the long-term. It is a deeper understanding that not having something now does not necessarily mean that you won’t have it in the future. As Steven Covey said, “it is the paradigm that there is plenty out there and enough to spare for everybody. It results in sharing of prestige, of recognition, of profits, of decision making.

With an abundance mindset, instead of spending all your earnings now, you would rather invest first and spend later on.


Poverty Mindset vs Millionaire Mindset

A fixed mindset and scarcity mindset are both indicators of a poverty mindset. In the same way, a person who has a millionaire mindset has a growth and abundance mindset.

Your mindset is very important. Your future is dependent on what mindset you have right now. It is crucial in ordinary times, mores when you are faced with challenges. Having the proper mindset especially during a crisis will greatly influence the direction of your life.

What kind of mindset do you have right now? If you want to have a better life, your first step is to change your mindset.

First published in Pinoy Smart Living on 12.28.2018

Feauture Image by John Hain from Pixabay

Posted by A.L. Jonas in Intellectual, 0 comments
11
Feb
2022
Health is The Most Important Thing in Life

Health is The Most Important Thing in Life

Reading Time: 2 minutes

When asked what we want in life, we usually have the words “happiness”, “wealth” and “success” in our minds. We often forget that a prerequisite to anything we want in life is good health. We often take our own health for granted. Our physical health is the most important thing in life. It serve as the foundation that allows us to develop the other dimensions of wellness in our life.

Health is like money, we never have a true idea of its value until we lose it.

– Josh Billings

Before we can pursue any of our goals in life; it is important that we have a healthy mind and body. We also need a healthy mindset and social life to support us along the way. Of course, we also need to maintain healthy habits to sustain our health. For example, if we have healthy financial habits; we can preserve and grow our wealth so we can do even more of the things we love. When did you last evaluate your physical health?

It is health that is real wealth. And not pieces of gold and silver.

– Mahatma Gandhi

Money can buy a lot of things but health cannot be bought. You should develop habits that help you maintain your health in all aspects of your life. After all, we only have one body and mind. They are what enables us to move and experience this world; and change it the way we want it to be.

Don’t let your health take the backset when planning your goals. Make sure that you observe healthy habits in everything you do. This allows you to be healthy enough to enjoy the success that you want in your life. Not only will you enjoy life more; your family will also benefit from you being healthy enough to celebrate life’s successes with them.

Updated. Previously published on 2020.01.13.
Feature Image: Original Photo by Dominik Wycisło on Unsplash.

Posted by H.J. Rangas in Physical, 0 comments
04
Feb
2022
Are You Well? The Eight Dimensions of Wellness

Are You Well? The Eight Dimensions of Wellness

Reading Time: 6 minutes

Do you feel healthy? Do you feel well enough to engage in your daily activities most of the time? Most of us gauge a healthy diet and exercising as a measure of our health, but this is only one aspect of being totally healthy. There are actually eight dimensions of wellness.

Are you fulfilling the 8 dimensions of wellness to live a balanced life?

Not being sick is also not a sign that you are healthy. Yes, you may be healthy physically but you may not be well. Actually, wellness is a holistic experience and total wellness can only be achieved if you are fulfilling the 8 dimensions of wellness in your regular activities.

Wellness is considered a necessary component to be able to achieve your full potential as a human being. It encompasses your lifestyle including your mental and spiritual well-being. Wellness is an experience where you, the individual, consciously make decisions that propel you to achieving a successful, balanced existence.

The 8 Dimensions of Wellness

To help you achieve and maximize your full human potential, you need to make daily goals that develop each of these dimensions.

PHYSICAL

Are you physically healthy? Do you look and feel healthy? Are you sick often or almost never? Physical wellness is being able to get through your daily activities without undue fatigue or physical stress. Physical health is one of the dimensions of wellness that is mostly neglected and taken for granted. It is important to take care of yourself physically because it is the foundation for our overall wellness.

Do you take care of yourself physically?

Remember that we only have one body and we are only able to interact with each other and our environment because of our body so we should make it a priority to take care of ourselves. We should ensure that we are physically healthy so we can perform to our best each time we are physically needed to do so.

FINANCIAL

Do you track your expenses? Are you following a budget? Do you have a savings account? Do you have an emergency fund? Are you investing your money? These are just some of the things that we need to have in our financial life. Without these things in place, we won’t be able to manage our finances effectively.

Are you satisfied about your current financial situation or do you wish you could improve it?

There are many ways to start learning about finances so you can improve your skills in handling your money. There is no quick-rich magic formula to become instantly rich. The best way to improve your financial situation is to learn more about your money personality, improve your financial literacy, pick one financial area that you are comfortable learning and doing and then expand from there.

SOCIAL

Are you friendly and outgoing? Are you aloof and/or prefer to be alone? Do you have one constant set of friends or do you have multiple sets of friends? Social wellness is having and maintaining positive connections with friends, family, colleagues and others. It means that you have people around you who you can feel safe with and are comfortable enough to be with in various situations.

Do you make time to go out with your friends and family?

Having many friends does not mean that you are healthy. You may be surrounded by friends and still feel alone and lonely if you don’t have good relationships with most of them. It is the quality and value of the interactions that you have with them that enables you to achieve social wellness. Constant communication is also a key factor in achieving social wellness.

SPIRITUAL

Do you feel that you are being guided to the right opportunities and decisions? Do you believe that you are being directed towards your goal or that you are fulfilling your purpose in life? How about, do you feel connected with and do you empathize with the people and events around you? Spirituality is different from religion. Two people can be from different religions but share similar spiritual practices and beliefs.

Can you calm down your worries and feel reassured that everything will work out for the best?

Finding your purpose in life and living it is the ultimate goal of each individual. Most of us believe that when we find our purpose and start living it, then we will find happiness. In fact, if we strive to find happiness in our lives, then it will become easier for us to find what truly makes us happy which is what fulfilling our life purpose should feel like. Being spiritually well involves a combination of believing in yourself as well as faith that the Universe has our back.

EMOTIONAL

Are you happy or sad? Are you angry or constantly cheerful or feeling upset? Emotional wellness refers to how you feel inside. When you feel constantly anxious, stressed and unhappy, this will eventually take a major toll in your overall health and wellness. Negative thoughts and feelings are a sign of poor health. There are many ways to alleviate poor emotional health and each person must find a way that is tailored to their specific personalities, needs and circumstances.

Are you sad or happy? How you feel greatly affects your health.

Being well emotionally means that you are able to control or regulate your emotions as necessary and that you are also able to take the necessary steps to change your emotions so you feel better about yourself and/or a negative situation. The main goal is to attain emotional happiness and fulfillment.

INTELLECTUAL

Does your job provide you with adequate intellectual challenges? Intellectual wellness means that you experience various types of intellectual stimulation through various means and different areas in your life. Constant learning not only staves off boredom; it also opens up new opportunities to develop relationships with new people, gain new knowledge, skills and new experiences.

Do you engage in activities that stimulate you intellectually?

Try enrolling in a course, develop a reading habit or listen to audiobooks, attend seminars and conferences about a topic you are interested in or find a hobby that you want to pursue. Develop a learning habit so that you constantly stimulate your intellect and mental skills and maintain your intellectual health. This also allows you to relate to much younger people than you since they are also learning new things in life.

ENVIRONMENTAL

Do you feel safe at home? How about in your community as a whole? Are you able to keep your home clutter-free? Are you disposing your trash properly? Environmental wellness is having a pleasant and stimulating environment that supports your overall well-being. You should have many safe spaces in your environment.

Does your environment allow you to feel safe enough to do the things you want and need to do?

Having the right environment is a big factor in achieving your goals in life. This can be as basic as having a dedicated work space to improve your focus and productivity. This also includes cleaning your living space as well as clearing the energy in these spaces. It also means how safe you feel in your community when you are walking alone late at night. Your environment also includes the people you interact with, your family, friends, as well as your colleagues at work and the office culture.

OCCUPATIONAL

Do you feel excited to go to work? Are you doing what you love? Your job contributes a lot to your financial state. If you are not well in this area, then it will definitely affect your performance in the other dimensions of wellness. We know that money can’t buy love or happiness but it does allow us to engage in experiences that can make us happy and acquire the things we like.

Do you love your job or are you constantly thinking of quitting?

We spend a huge amount of time at our jobs and if we are constantly stressed by it, then it will have a negative impact on our overall health. Also, having anxieties about your financial situation can cause a lot of stress. Make sure you spend some time to think about your job and your finances and what your real situation is. It helps to list down the pros and cons and then make a plan on how you can improve the situation and alleviate your issues.

Your State of Wellness

So are you well? If you are not paying attention to any of these dimensions of wellness, then you have not truly achieved overall wellness. Working on each aspect of wellness means that you plan for activities that help you fulfill each dimension. Make sure you review often so you are also able to monitor your progress towards your goal of achieving overall wellness.

If you are not sure which dimension you should work on first, then find time to look inward and talk to yourself. Spend more time with nature and learn to be comfortable with yourself. Get to know yourself better so you can have a clearer picture of what your qualities and values are and why they are important to you. This is the starting point for you to redesign your life to achieve overall wellness in all eight dimensions.

There are many ways to do this. You can start practicing meditation and engaging in gentle exercise that require focus such as tai chi and yoga. The simple act of keeping your thoughts in a diary and writing down your feelings on paper also helps. Expressing your emotions thru drawing and painting or even thru needle work or flower arrangement area also great ways to help you get to know yourself better.

The important thing is to carve out some “me time” for yourself during your day to strengthen your awareness of self. You can gain a deeper connection to your values and beliefs and get a clearer understanding of why you choose to live the way you live and how you can change it for the better.

Updated. First published on 2020.01.20.
Feature Image: Original Photo by Yayan Sopian on Unsplash.

Posted by H.J. Rangas in Spiritual, 0 comments
03
Feb
2022
A Balanced Life

A Balanced Life

Reading Time: 2 minutes

Life is all about balance.  When you have a balanced life you feel happy, calm and content yet motivated and driven at the same time.  Highly successful people live a well-balanced life.

How To Live A Balanced Life

A balanced life means there is harmony in all the elements of your life.  If you are feeling burnout, it’s a signal that you are focusing too much on one aspect of your life and neglecting the others. True success and happiness all boils down to doing your responsibilities yet making time for doing things that you enjoy.

Pillars To A Balanced Life

There are 8 pillars to a balanced life. These are actually the 8 dimensions of wellness. Create harmony among these pillars and you will be able to achieve not just your dreams and happiness but also your growth as an individual.

Here are some questions that you can ponder on to see if you have achieved balance in your life.

1. Physical

  • Do you have enough sleep?
  • Do you exercise?
  • What kind of food do you usually eat?

2. Financial

  • Do you have enough money to meet your needs?
  • Are your debts manageable?
  • Are you saving enough for your future?

3. Social

  • Do you have enough time to spend with your loved ones?
  • Do you have a vast network of friends?
  • Can you count on your friends if you need help?

4.Spiritual

5. Emotional

  • How do you manage stress?
  • Are you constantly worried about something?
  • Are there people that wronged you in the past that you have not forgiven yet?

6. Intellectual

  • When was the last time you read a book?
  • Do you travel?
  • What new skill have you learned recently?

7. Environmental

  • Is there clutter around you?
  • Are you happy with your surroundings?
  • Do you care for your environment?

8. Occupational

  • Do you love your job?
  • Is your work fulfilling enough?
  • Do you always lose your temper at work?

Try to reflect on the above questions about your life and answer whether you have a balanced life or not.  If it is not balanced, make a conscious decision to change all that.  It would help if you could create goals in every aspect of your life. Only through a balanced life will you find a sense of fulfillment and meaning.

Feature Image by Pexels from Pixabay

Updated Version. First Published in Pinoy Smart Living on 09.07.2018

Posted by A.L. Jonas in Intellectual, 0 comments
24
Nov
2021
Why Money Can’t Buy Love

Why Money Can’t Buy Love

Reading Time: 4 minutes

Money makes the world go round, but why is it that money can’t buy love? “Money makes the world go round,” is a familiar saying that we often hear. It means that if you have money; you can have anything you want in the world. Well, almost everything because we know that there are some things money can’t buy.

Memories

We know that money can buy a lot of material things. There are many material things that can make us feel happy. The act of giving and receiving gifts is one of them. Being able to acquire material possessions that let us live comfortably also makes us feel happy. Having limited edition items around us can also make us feel wealthy and even proud of ourselves.

A house and lot or an apartment unit, nice furniture and appliances, the latest gadgets, a car, and being able to spend for a vacation are things we want and need. Cooking a meal or making DIY gifts for our loved ones are priceless memories to us. All these material possessions require money to buy and maintain. The memories that we create with these things around us, can never be bought with money.

Relationships

One of the things that money can’t buy is genuine relationships. You can’t buy yourself a family who will love and support you. You can’t buy yourself friends. Your buddies and you have stuck together over the years because of your appreciation and acceptance of each other. This means that you all enjoyed the good times together but you still stuck with each other during the bad times.

Relationships are built through time and effort, respect and understanding, and constant communication. It will take money to go out for dinner and road trips with your friends. But you can’t buy respect, acceptance, understanding and the appreciation you get from those who have learned to value you for who you are.

Experiences

You can buy a good bed and mattress; but you can’t buy a good night’s sleep. You can enroll in a class, get a coach or mentor, buy a book or listen to audiobooks to learn from people’s experiences. These kinds of learning materials can be bought with money. However, most of us never really learn valuable life lessons unless we get to experience them ourselves. Even in travel adventures; we always long to go to the travel destinations ourselves instead of just admiring them in pictures.

Through personal experiences, we are able to learn how to face our fears, overcome challenges, process our hurts and move on from grief. We also learn how to transform ourselves and our mindsets to become better people. Each person has their own path in life. Money can’t buy you the courage and belief in yourself that you need to move forward in your journey.

Love

All our memories, relationships and experiences are precious to us because of the feelings we had during those events and with those people. Happy or sad, peaceful or confused, angry or joyful, are emotions we associate with many of our memories, experiences and the people in our life. Most of the things we consider beautiful don’t need to be bought. Falling in love is one of the riskiest things we can be involved in. Yet, we dive into it willingly even if the chance of getting hurt is always there.

If we think about it carefully, we can simplify things by looking at emotions as stemming from love or the lack of it. We feel loved by the people around us, or by the Universe, that’s why we feel happy, joyful and even peaceful. On the other hand, we feel unloved when people ignore us, reject us, or don’t want to be around us. Our environment feels sad and gloomy and not like a safe space at all when we are not surrounded by the things we love. Just think how giving someone a plushie has become a universally accepted token of friendship and love.

Money Can’t Buy Love

There is no love bank anywhere in the world. We cannot deposit or withdraw love as we do with money. It is not possible to purchase love directly from any store either. But we can purchase things for other people to show them we love them whatever their love language may be.

Fortunately, no love bank is needed. We can generate love on our own. If you want to increase love in your life; just do things that make you feel loved or show others your love for them. When you experience a decrease in love or a lack of it; then do the things you need to do to increase feelings of love in your life again.

During negative situations, take a breather and try to see the bright side of things. Ask yourself: Where can love be shown and increased in this situation or with this person’s circumstances? Being positive does not solve all situations. After all, we are human. It is perfectly okay to not be okay and walk away to heal ourselves first by loving ourselves.

There may also be times when we need to walk away from a person we truly love and let them go. We often call this “hard love” because it is indeed very hard to do. Our tendency is to cling on for fear of losing that person’s love for us. We do not lose love in such situations. Love is energy and it does not disappear. It only transforms into something else. All the love we give eventually comes back to us; sometimes in even more wonderful ways. Now that is the kind of interest rate that no amount of money saved up or invested can match or guarantee. That is why, money can’t buy love.

Feature Image: Original Photo by Laura Ockel on Unsplash.

Posted by H.J. Rangas in Social, 0 comments
04
Oct
2021
5 Ways to Improve Your Financial Literacy

5 Ways to Improve Your Financial Literacy

Reading Time: 5 minutes

There are many ways to improve your financial literacy. Money is involved in almost everything we do in our daily lives. We work at our 9-to-5 jobs to earn money because we have so many things to spend it on. Most of us barely get by on our monthly income, making it seem like we are working for money instead of making money work for us. 

This is why financial literacy is important. Learning about money and understanding how you can make it work for you, instead of the other way around, will help you reach your financial goals quicker.

Learning about your finances can only start with the right mindset. Most people are afraid to tackle money issues because it is a sensitive subject that is tied up with their personal habits. If you want to save money, you need to accept the fact that you have to sacrifice some personal conveniences and luxuries to start saving.

Instead of treating your finances as a boring subject or a scary one, try to look at it with an attitude of curiosity. This is the only way you can start learning. Don’t be judgmental; just be curious about yourself, your money habits, and the possible ways you can make your money work for you.

Here are 5 ways you can start learning to improve your financial literacy.

1. Learn and Talk About Your Money

The first thing you need to do to learn about money is to become aware of how you spend your own money. Track your daily expenses in a notebook, a spreadsheet, your mobile phone; whichever way is convenient for you. Do this for a whole month and before the month ends, you will already see a pattern on what you spend your money on. These are your spending habits. Based on these habits, you can start learning ways on how you can better spend your money.

Tracking your spending also helps you identify your attitude towards money. Do you have a poverty mindset or do you have a wealthy mindset like rich people? Most people have a poverty mindset. Learning about your finances and having a plan of action will help you develop a wealth mindset.

Another habit you can develop is to be comfortable talking about money. Talk to other people about how they spend their money. Do they follow a budget? Has their budget worked for them so far? You might even find a buddy who you can learn from or who can help you stick to your money goals.

2. Make A Budget and Follow It

Once you’ve identified your spending habits, it’s time to make an evaluation. Look at the items you are spending money on and categorize them. Identify which are your major expenses. From there, identify which are the most important ones; the ones you need and can’t live without and which ones you can do without. Those items you can do without are your “money leaks”. You are spending money on these items unconsciously and these may be bigger items than just your cup of coffee from your favorite cafe each morning.

Based on this general category of your needs and your money leaks, create a budget. Your budget should help you plan out how much money you must allot for the important items on your list and how much you can spend on your money leaks (if there is extra money for them in your current monthly income). This way, you don’t feel deprived but you can control how much you can indulge in your favorite luxuries – not every day but maybe once or twice a week will allow you to save money.

Try to follow your budget for at least 3 months and adjust it accordingly until you create a budget that works just right for you. Then follow it each month while keeping track of your spending and your savings. This will help you discipline yourself so you can manage your money better. A budget will be a big help to improve your financial literacy.

3. Create Long-Term Money Goals

After learning and adjusting your spending habits, it’s time to create long-term financial goals. How do you plan to spend your money a year, 3 years from now? Having extra money tucked away in our savings account often inspires us to take up our buried dreams that we’ve kept in the back burner because we needed to earn thru a day job. This is the starting point of how you can make money work for you.

Write down how you want to spend your money in the next 3 years and even 5 years. Are you going on a travel adventure? Do you plan to put up your own business? Do you want to buy your own apartment? Are you thinking of studying again? Do you want take up that course you really wanted to take in college but had to give up to follow your parents’ advise?

Write down your dreams and do your research to figure out how much money you will actually need to make that dream a reality. Once you have the figures, then you can start learning new ways to not only save more money but to make your money grow.

If one of your major goals is to get out of credit card debt, write it down and see how you can adjust your spending to pay it off as quickly as possible.

4. Learn and Start Investing

Now that you have a clear idea of how much money you have, how much you are spending and saving and how much money you need for your financial goals; it’s time to start learning about investing. Unfortunately, money lessons are in most school curriculums so most people have to learn it on their own.

Investing is not only saving more money, it means creating wealth. One of the most convenient way to start growing your money is to enroll in your bank’s investment program. Be sure to ask your bank about it and learn how your money can earn from their program.

You can also consult a professional financial adviser who can help you decide on the best investment tool suited to your current situation and financial goals. This way, you are already growing your money while you are looking for other ways to earn more. In the meantime, stick your budget and keep saving. The desire to learn is your first step to further improve your financial literacy.

5. Keep Learning On How to Make Money Work For You

There are tons of resources about investing online and there are many books that you can read too. We have compiled some of the basics for you in these articles:

You can get more financial wisdom from these articles but be sure to read books too:

There are many resources that you can easily access to improve your financial literacy. As you learn more and enhance your personal money management skills, you will eventually get the opportunity to learn about financial instruments that you can use to increase your wealth.

You can read books, watch online videos and listen to podcasts about financial management or about investing tools that you are interested in. You can also take courses to help you learn about finances. Just keep on learning as much as you can so you have a better understanding of what works for you.

Updated. First published on Pinoy Smart Living on 2019.09.20.
Feature Image: Original Photo by Mathieu Stern on Unsplash.

Posted by H.J. Rangas in Financial, 0 comments
16
Aug
2021
How to Spot Investment Scams

How to Spot Investment Scams

Reading Time: 3 minutes

The only way to grow your money is through investment. Leaving your money in a regular savings account is never enough because of the low interest rate. More often, inflation will take the value of your hard earned savings. But where do you invest your money? There are many types of investments available out there depending on your age, goal, time horizon and risk appetite. While there are legitimate ones, there are also some which are fraudulent in nature. As an investor, it is important that you know how to spot investment scams.

1. Low or No Risk, High Return

If someone offers you an investment that is low risk yet offers high returns, you are most probably getting scammed. Investing is all about risk. Whether you are buying bonds, funds, stocks, stock option, real estate, antique or any other kind of investment; there is always risk involved. The same is true when you are opening a business.

The general rule of investment is that the higher the risk, the higher the potential return. If the investment being offered to you defies this rule, then it is a scam. These kinds of investments are what you call phantom riches. It simply means that they are dangling the prospect of wealth, knowing full wealth that it is something that you want but can’t have.

Always remember, “If it is too good to be true, it is too good to be true.”

2. High Pressure Sales Tactics

Avoid being rushed. Example high pressure sales tactics include:

  • Limited Time Offers
  • Available Only to First Few investors
  • Invest Today and Get Credits

Although high pressure sales tactics are considered legitimate marketing strategies, scammers used this primarily as their persuasion technique. Their goal is to have you commit to the investment right away so that you will have no time to do your research or change your mind. Never entertain those that give you pressures or force you to make a quick decision.

If you are going to invest your hard earned money, you need to have ample time to think about it and do your research. It is one of the investing rules from The Richest Man in Babylon. Know what you are getting yourself into. Yes, do your research even if the one offering you is a close friend or family.

3. Unsolicited Approaches

If they just contacted you out of the blue; chances are it is a scam. How did you learn about the investment? If you learned about it through a phone call, email or text message from someone you don’t know; Some of them will even ring your doorbell. This is what you call cold calling. Their intention is to sell something or make you invest in something. Although it is not illegal, it is best to be wary of them.

If ever you receive an offer, get the following details:

  • Full name of the person
  • Company name and address
  • Telephone number preferably landline not a cellular number

Do not deal with them if they seem hesitant to give their information. Once you get all these details, hang up. Tell them that you think about it and that you will be the one to call them back. Then do your research. Make sure that the company is duly-registered. It is best also to check if the type of investment is regulated by the government.

4. Requirement of Getting New Participants

Multilevel marketing is a sales strategy wherein distributors are encouraged to recruit new distributors. Many big companies use this as their marketing strategy. Although it is legitimate, it is also very controversial. Many people have been scammed with pyramid schemes. How to spot the legitimate ones from not? Simple, the legitimate ones focus on product sales while the scammers focus on recruitment of new members. If the earnings are dependent on how many people you can recruit, then stay away from it. It is a pyramid scam.

Do not invest in something that you are not familiar with. Do your research first. Take your time. And soon, you will find a legitimate investment vehicle that fits your financial goals.

Feauture Photo by Anna Tarazevich from Pexels

Posted by A.L. Jonas in Financial, 0 comments
08
Jul
2021
Investing Rules from The Richest Man in Babylon

Investing Rules from The Richest Man in Babylon

Reading Time: 4 minutes

All your life you have been working for money. But did you know that it can be the other way around? Yes, you can make money work for you instead. In order to do this, you need to learn to invest your money. However, investing your money is not as easy as it sounds. There are certain rules that govern investing. In ancient times, the residents of the city of Babylon understood this. They appreciated the value of money and applied some wealth rules. Thus, the city of Babylon was the wealthiest city in the world during that time. So, how to build personal wealth? What are the investing rules from The Richest Man in Babylon?

Best-selling author George Clason narrated the teachings of Arkad, the richest man in ancient Babylon in his book The Richest Man in Babylon. The story is filled with ancient yet timeless wisdom and knowledge. The book contains practical lessons and advice that can still be applicable even in this modern world.

Th Richest Man in Babylon

Here are the the investing rules from the Richest Man in Babylon coined as the Five Laws of Gold:

1. Save 10% of Income.

Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.

This is the first step in the road towards financial freedom. That is to save 10% of income. This money will serve as the seed of your money tree. Consistency is the key. By consistently setting aside 10% of your income, you are slowly building your wealth.

Those who do not save will forever find themselves in the rat race, living from paycheck to paycheck. The key is to spend less than you earn. Many people save what is left after expenses. That should not be the case. Rather, as soon as you receive your income, you should automatically set aside 10% for savings first.

2. Invest Your Money

Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.

The second step is to invest your money. Putting your money under your bed or depositing it on a regular savings account is never a good idea because of inflation. Your money will soon lose its value over time. It is only through investing will you be able to take advantage of the power of compound interest and make money for you instead of you working for money.

There are many investment vehicles available out there. Choose one that will best suit your interest and risk tolerance. You can choose from bonds, funds, stocks, stock options, cryptocurrencies. Fixed properties such as real estate or movable properties such as jewelries, antique and vintage items, artworks and luxury watches are also good options. You can even start your own business.

3. Seek Expert Advice / Have a Mentor

Gold Clingeth to the protection of the cautious owner who invests it under the advise of men wise in its handling.

Who do you ask for advice? This is one area where most people fail, especially when it comes to money. People have the tendency to ask for money advice from people they are familiar and comfortable with. However, that should not be the case. Instead of asking someone that you are comfortable with, learn to seek the advice of financial experts.

Have a mentor. A mentor is someone who has already achieved your goals. For example, you want to learn how to play tennis. Will you get a coach who does not know how to play the sports? Of course not! Another example is if you are failing math in class, will you hire an English tutor to teach you math? It is the same way in life, seek the advice of experts. Be choosy when finding a mentor. Do not ask a friend who is broke for money advice.

4. Only Invest on Something That You Are Familiar With

Gold slippery away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.

Have you heard of stories of people losing all their investments? Yes, it happens. It is possible to lose all your hard-earned money if you are going to invest on something that you are not familiar with.

This fourth rule of the laws of gold takes investing to the next level. It implies that it is not enough to simply ask advice from other people. It also entails the investors to know, learn and understand what they are getting into. Don’t just blindly trust others. Do your homework too. Study the market. Do research. Enroll in classes. In short, learn, learn, learn.

5. Do Due Diligence

Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.

Due diligence means investigating, reviewing and checking the facts. Many people lost a lot of money because they did not bother doing a background check on the seller and the investment. For example, in real estate investing, research first before buying a property. Verify the deed on the land registration bureau. Bring an engineer or architect to inspect the property for any unseen damage. Check the surrounding community if it is a safe environment. Ensure that it is not a flood zone. Talk to the neighbors for a brief history or stories of the house. This is what due diligence is all about.

And always remember before you invest in anything, if something is too good to be true, chances are it is. Don’t let others fool you.

Apply the investing rules from the Richest Man in Babylon and soon you will be on your way to building your personal wealth.

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Posted by A.L. Jonas in Financial, 2 comments
23
Jun
2021
Use The Power of Compound Interest to Get Rich

Use The Power of Compound Interest to Get Rich

Reading Time: 3 minutes

Have you ever been to any of the seven wonders of the world? They are so-called the wonders of the world because of their beauty and perfection. They were created by mankind in the past that are now revered in the modern world. In the world of investing, there is a principle that is dubbed as the 8th Wonder of the World. Albert Einstein called it “the most powerful force in the universe”, and that is compound interest. Anyone can use the power of compound interest to get rich.

Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.

– Albert Einstein

What is so nice about it is that anyone can use it to their advantage, regardless of age, gender, social status and educational background. It can create millionaires even for ordinary people.

What is Compound Interest?

Compound interest is the interest on loan or deposit. The interest is then added to the principal amount and accumulated through a period of time. Simply put, it is interest on interest.

To illustrate, for example you start saving $100 a month from the time you are 20 years old until you become 65 years old for your retirement fund. Let us say the fund gives 6% interest per annum compounded annually. By the time you retire at 65, you will have $475,471.46 in your account.

Image Credit: Investor.Gov

Compare the $475,471.46 with $66,000 which is the total amount you would have saved after 55 years of saving if you have decided to put your money under the mattress. That is the power of compound interest. Use it to your advantage, and it will work wonders for you. It is the key to wealth.

To take advantage of this principle, you need two things.

1. Investment

The first one is investment. For your money to earn interest, you need to invest first. Your piggy bank or your mattress will not give you compound interest.

There are many kinds of investment vehicles available out there from stocks, bonds, options, real estate, mutual funds, insurance, jewelries, antiques and many others. You just need to find one that best suits your personality and risk tolerance.

2.Time

The second thing that you need is time. As a general rule, the longer you have been saving, the more money you can expect to make. In short, more time means more opportunity for compounding.

Two-Edged Sword

However, compound interest is a two-edged sword. True, it can help you get richer but it can also help you get poorer; or worse it can even lead to bankruptcy. How? Through bad debts most especially credit card debts.

Most credit card companies use the power of compound interest to their advantage. This means that the interest incurred is applied to your principal amount each time you decide not to pay your total credit card amount due in time. What is more alarming is that compound interest is not added annually but rather to the balance amount to the end of each day.

Thus, compound interest is very beneficial but at the same time very damaging for you. In order to avoid this, make sure to pay the total amount due of your credit card on time. If you don’t have enough budget for it, practice delayed gratification.

Make compound interest your best friend not your worst enemy!

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Posted by A.L. Jonas in Financial, 0 comments