The Truth About Money
I have been so excited of late to see people are taking an interest in money. I do not advocate wanting more money, as I believe that life is not all about money. In fact if you are all about money then you have a very empty and meaningless quest on your hands.
The reason I am excited is because I feel that there is so much misconception about money out there, so it is great to have people interested in the subject. That way they can learn, and grow and actually find what it is all about.
I had a debate about money recently. A friend of mine, has gone through years of sacrifice, and whilst he has built up an admirable cash reserve, he has to yet lived, he has missed out on so much and all because of some misguided beliefs. I will share these beliefs with you, so we can bust them together.
- Money is there to control us
Money will control you if you let it!
I am not saying that we do not need money to live. Unless one has an awesome set up for living off the grid, money is part of our society. There is a certain amount that we need to live. This amount is to cover food, utilities, shelter.
When people live in fear that they cannot meet these needs, suddenly the game of money becomes about survival, this view in turns creates the vision that to survive one needs to sacrifice. A person in this position sees a lack everywhere, the hoards of negative ‘what ifs turn up’ and opportunities to make money disappear.
You will find that people in this position only have one source of income – they didn’t create any passive income because:
- They do not see the opportunities to
- They cannot let go of what they earned through hard work, because ‘what if I lose it’ though appears or that it is too risky
- Even if they put away most of their salary they tell themselves that they have no money, and as such feel constantly broke.
- They cannot enjoy life fully, not to mention if something cost money
- They do not feel the joy of giving, because it cost money – and it is very painful to depart with it
If a person is in this position, money has very great power over them. Sadly their hard work doesn’t have the chance to fully pay itself off as they never make money work hard for them!
- You must have cash to buy things
I have to agree with this to some extent. Let me explain.
I believe in good debt and bad debt. Anything falling into the bad debt category – like cars, holidays, latest gadget, anything to do with consumerism – yes, you need to pay for it in cash. If you cannot pay cash, you simply cannot afford it!
Then there is good debt. Good debt is money I use for investments, whereby I leverage the money I have to control larger wealth producing assets. These range from businesses, to property and shares. To ensure these assets stay in the good debt section, I review these every 6 months, and if for some reason they are not giving me the return I desire, I look at taking relevant action to make them a desirable asset again.
Leveraging appreciable assets is the way one creates wealth, and with the right assets – passive income in the long run.
The aim of the game is to make your passive income larger than your income coming from working. Once you achieve that, you have the freedom to decide whether you still want to work hard for your money, instead of making money keep working for you.
- You can only make money if you work hard
I have to say that the old adage ‘do what you love and you never have to work a day in your life’ what comes to me here.
Think about it, about 150 years ago we were all encouraged to do what we loved, what we were good at and we were bartering our services for what we needed. People were a lot more fulfilled. Then enter the industrial age, where the driver to survive came in, and people lost their vision to do what they loved.
Donald Trump once said ‘it is about the game, not about the money’. He loves real estate, he made millions. A study has actually shown that the healthy wealthy all do what they love. They have a vision, a strong driver as to why they want to succeed in their chosen field. To them money is just a game, a way to keep score on how well they are doing.
There are plenty of hard working people around that are stressed to the max and flat broke. I know which path I rather choose.
So what beliefs are you holding onto that are holding you back? Is it time you change them?
Do you still believe that money is the key to happiness and wealth? Watch the full Masterclass to bust that myth.