Hi All, If you're on this forum, I assume you're here to make money via the Internet. Fantastic. What if I said more income won't make you any richer? Huh? In my experience people have what I'll call money habits which are ingrained and lifelong in the making. Our current financial results in life are a direct result of these money habits which actually come from our beliefs about money. You may ask "What does this have to do with IM?" and my answer is "Everything!" If our current money results aren't flash (= financial foundations for money are faulty), then building a big IM building on those foundations only means a bigger crash... sooner or later. Poor money habits always seem to find a way to undo all our hard work. So just as we are upskilling our IT skills to build our IM businesses on this forum, it's also critical to upskill our money habits to stop our money working against us. Easy money habit red flag test: Is there too much month left at the end of my money? lol Next check: What percentage of my income do I consume (including loan repayments) versus the percentage I invest? Ouch Here's the catch: Unfortunately despite all our best intentions, earning more money doesn't change our money consumption percentage. So if we are consuming a high percent of our income now, no matter how much more IM income we generate we'll continue to have too much month at the end of our money. Dang! Part of building a successful life from our IM business is developing our money habits. Here's some quick money pointers: 1. Invest 10% of all your income into something other than your current business venture. 2. Use another 10% of your income to retire debt, once the debt is gone, increase 1 above to 20%. 3. Build reciprocity into your life, give 10% of your income to charity. 4. No more personal debt (this includes no car loans). 5. Spend the rest (after putting aside whatever you need to for the taxman). If you can't make the 10% targets, start at a lower percentage and increase it by 1% every two months. What other financial IQ ideas are out there? This is not about investment products or insurances, I am asking for healthy money habits so our IM businesses are built on solid financial foundations. What's your view on what I've just said? Do you have any questions? To your success.
Because having been an accountant for over 18 years I believe it's worth having the discussion. This is an important topic for people in business. If you don't sort out your money habits the rest of your efforts are a waste of time. Like I said, build a building on faulty foundations and it will come crashing down. I'm sure there are people on this forum who aren't on the other one and I'm looking for new ideas.
I would not suggest anyone to manage their finance their self. Instead,i give my personal financial management to manage it for me. Although the fee to hire professional is expensive but it worth it.
Agree with you that developing our money habits is the key to the financial freedom!! But once you have increased your spending, it will take double the effort to restate to original spending patterns. This is what we call human behavior......... How sad......
Money consumption is not equal or rather directly propotional to money earned. It may seem directly proptional until a certain money figure, once the earned money reaches above the certain personal consumption level, the propotion breaks and you have more money than you can consume. This difference keep on increasing once you keep earning more. I agree with 10% theory of investing in other business venture and charity But until you're looking forward and increasing your profits with no debts, there is no need to worry for retirement. Regards, Richie.
One of the best books I have read on the subject of money and our habits is Secret's Of The Millionaire Mind-by Harv Ecker. The book is easy to read understand. Money is one of those subjects which touches every part of our lives. So from my viewpoint it pays to get your mind straight around this very important subject.
Hi! First of all this is my first post in this forum I believe that's REALLY important to understand "art of money" but in the same time I also believe that there is power in outsourcing.... my point - you should always have overall control over finances in your business, you must have right habbits when dealing with money and you also should have good finance manger, so you can outsource little dirty tasks and focus on bigger picture! I also suggest - Rich Dad Poor Dad by Robert Kiyosaki!
Money management is indeed the problem that most people have. However, there is a point that more income DOES solve the problem that few people mention. For instance, somebody who works in a low-level restaurant may make barely enough to survive. Even if he or she tucked away 30% of his or her income, it may take 20+ years to have enough money for a down payment on a rental property. Even then, the bank won't issue a loan, because there is not enough income to support it. While I agree that for the most part money management is the problem, lack of income is becoming more and more of a problem for those without degrees or certifications these days.