In the previous article, we talked about fixing the financial problem. It has been explained that we should identify the root cause and not just busy getting more incomes fixing the immediate financial issues. The first mindset you should have is: make money important for you. What I realize over the years is people often ignore the importance of money. Many make career more important and they forgot the main reason why they go to work? They spend time working, doing the work better and they often do not track the end results which is the money. Some might think that having more money is evil and rich people are bad. This makes them ignore the money even more. They just go back to work, hoping they can get enough money to survive. If that’s what they think, they will only get enough money to survive.
When I talked to many of my prospects about setting financial goals, i.e. how much money they need for retirement or for their children, many of them have no clue. Some even told me that it is still too long to plan and they will postpone this when they are free to do the planning. You see, people are too busy working without knowing why they need to work. It is a never-ending cycle. If money is important, why is it not being prioritized? Why people want to postpone it to a later dater. When people want to start planning, unfortunately, it is because something has happened. The fire fighting cycle start happening. I’m not suggesting that you should worship money. I just want you to realize that money is a very important tool to help us get freedom and solve many of our family issues. If we have money, we can use the money to engage other people to do something for us and free up our time. We can then spend more time with our family members. Change your priority from working to money.
Number 2 mindset, allocate time for our personal finance every day. If it is important, we need to have time thinking about it. Not tomorrow, not after 1 week and not after 1 year, do it everyday and start today. Robin Sharma is one of world’s top leadership experts who coaches many billionaires and top world athletes said “Consistency is the mother of mastery”.
If we want to master the money, we got to do something consistently. Nowadays, many are spending too much time on working, some don’t even track whether they are working productive to get the money they deserve. Many will just spend without tracking. If we can just allocate 15 mins everyday for this important matter. I can assure that everyone of us will do better in personal finance. 4 things that we should be doing everyday. First, save everyday. We know that we cannot work forever, hence we need to start saving for our future. We do not postpone this action to next week, next month, next year or next 10 years. It is a top priority that we take care of our future. We spend 1-2 minutes transferring our money to our future retirement account, it can be an investment account so that it can give us a better yield than normal saving account. As the investment might need minimum amount, so I normally set up a separate banking account which I transfer money into it on a daily basis. Every month, I will transfer this money in the banking account to another investment account once it reaches the minimum amount for investment. Read here for how I set up a separate goal in Maybank to save money everyday.
Second, spend time planning and budgeting of the expenses. Spend 5 minutes or so tracking the daily expenses and reflect. Know how much we are spending and improve the way we spend our money. Third, spend 5-10 minutes everyday learning something about personal finance. You can learn about loans, saving, budgeting, investing, general market situation which affects your money. You can get new knowledge via watching YouTube Video, reading books, reading article, listening to podcast, etc. Fourth, spend 10-20 minutes every month to plan for your investment and grow your wealth. We certainly do not want to continue trading our time for money. Start to find ways to earn money while we are sleeping through leveraging on productive assets.
Third mindset that we need to have is always think long term and never give up. Personal finance takes time to master and improve. It requires discipline to maintain it. No one knows everything and we are improving every day. It is not a sprint but a lifelong journey. Never expect that we can earn a huge amount in one shot and then rest forever. This hardly can happen if we don’t master the money transmission process. People who get big fortune within a short period of time and not spending time managing the money will eventually run out of money again. Then these people will need to work hard again to get more money.
Once you have these 3 mindsets and you will be able to apply all the strategies to grow your wealth. Remember, strategies alone are useless without the correct mindset.
Once we are able to master the money skill, it will help you forever. Do the required action everyday, you will be a money master in no time. You can watch the Youtube video here on this same topic.
You can receive constant broadcast message relating to wealth creation to financial freedom through Telegram. Click here to subscribe to the telegram for the weekly newsletter.