To contact us Click HERE
5Money Secrets: InspiringNew Ways to Think About Your Money
One of the main reasons you and Iare working together is that you’re tired of being driven by fears and desires.Throughout this lesson, I’ve pointed out that identifying finance as a strictlyintellectual endeavor has not served your needs. My goal is to lead you towardliving your one best financial life.Although what money alone can do islimited, its power to create happiness or cause suffering is immense. Thefollowing 5 Money Secrets provide a powerful way to guide your decision makingso that you can take genuine control of your financial life.
1. Your life will be filled withtough choices.2. Your entire life is determinedby how you make decisions.3. Your biases will affect everydecision you make.4. You will be distracted by thingsthat really don’t matter.5. You must have a good process to make good decisions.Money Secret 1: Your life will be filled with tough choices.YouWant It AllPart of consumer culture is thatfrom early on, we’re taught to think big. Every American can dream of owning anicer car. We drool over bigger TVs. We vow to take more vacations. We fantasizeabout fancier shoes and jewelry. With a combination of envy and disdain, weread stories of the super rich with their mega mansions and private jets. Sometimesit’s a blessing; other times, it’s a curse. In either case, we humans have alimitless ability to dream bigger and to always elevate our aspirations. Thisis true whether you’re a schoolteacher struggling to make ends meet or you’re abillionaire, like Bill Gates, debating how to improve the lives of as manyimpoverished people as possible—and, for the moreself-interested super rich, how biga yacht they can afford! At some point, however, you must acknowledge thereality of your circumstances. Usually, you can’t have it all. Soyou have to make choices.Neglecting to make tradeoffs canlead to credit card debt, a persistent inferiority complex, and constantfinancial pressure. To reach your fullest potential requires you to identifythe intersection between two elements:• Your currentdreams and goals• Your finiteresources
Money Secret 2 Your entire life isdetermined by how you make decisions:
BigDecisions Can Be Both Scary and ExhilaratingMajor decisions can keep you up at night.They sometimes nervously walk the line between big payouts and failures of mythicmagnitude. Consider some of the most significant ones you’ve made in your life.I’ll list a few possibilities: • Who will be myprom date?• How will I tellmy parents about the car wreck?• What collegewill I attend?• Should I takethe job?• Should I quitand start a new career?• Should I launchmy own business?• Will I getmarried?• Will I havekids?• Do I want adivorce?• What’s the bestcancer treatment?• How will I livethe rest of my life?• What do I donow?These supersized decisions arestressful because we don’t have control over their outcomes. Despite this lackof control, however, we manage to spend an exorbitant amount of time runningthrough countless what-if scenarios.
Money Secret 3 Your biases willaffect every decision you make:
Everyone perceives his or herfinancial situation in a particular way. We each have our own perspective thatis shaped by our personal history and upbringing. I have already discussed thefact that money helps you do the following three things:1. Avoid pain—by protecting youand helping you to take care of what you’re afraid might cause pain in thefuture2. Feel good—by getting youthe things that provide you with happiness and satisfaction3. Take care of theones you love—by meeting your obligations to family, community, and society at largeWe all want money to take care ofthese things for us. But because of who we are and the life we have led, one ofthe three is usually more important to us than the other two. And when it comesto important or stressful financial decisions, we generally have a primaryfocus.I call this primary focus your Money Mind. There are only three Money Minds.They are as follows:1. Fear (The Protector)2. Happiness (The PleasureSeeker)3. Commitment (The Giver)Whenfaced with important financial decisions, you will revert to your dominantMoneyMind, which will always affect the way you make decisions.
Money Secret 4 You will be distracted by things that really don’tmatter:
Your Two Worlds: External and InternalWith so much competing for your attentionevery day, determining where to direct your resources is a daunting task. Nodoubt, there are limitless ways to spend your time and energy. Unfortunately,you have a limited amount of both. In this regard, time is fair: Whether you’rethe president of the United States or a newborn infant, your daily dose of 24hours is the same. Therefore, to reach your goals, you must determine whereyou’ll direct your focus right now and what you’ll postpone until later. Inthis lesson, I’ll first describe what is competing for your time and resourceswhen it comes to your financial life. From there, you can determine how toseparate essential tasks from nonessential ones. Each of us lives in twofinancial worlds: external and internal. Our external world includes taxes,inflation, the country’s economy, the stock market, and more. All of these willaffect us, but we cannot control them. Meanwhile, our internal world consistsof our job, salary, spouse, and family—in other words, things we can directlyimpact.
Controlthe ControllableImagine that you’ve planned to loseone pound per week over the next ten weeks. You’ve made it to week three, andyou’ve proudly stuck to your plan. As a result, you’re three pounds lighter.Two activities havecaused your weight loss: You’vewalked three miles a day, and you’ve cut your total caloric intake.It’s now Monday of week four. Atthe start of your daily walk, you trip and sprain your ankle. The doctor saysthat you cannot bear weight on it for two weeks. Suddenly, an accident, whichwas out of your control, has presented you with two realities:
1. You can’t change what happened.2. You can only change how youreact to new information.
Money Secret 5 You must have a good process to make good decisions.1. Complete InformationThis means you have a comprehensiveunderstanding of all the issues related to a particular decision you need tomake. Complete information includes a decision’s possible ramifications,consequences, and long-term costs. You also need an accurate assessment of theresources you have available to pay for your decision.2. Objective AnalysisIn order to move forward in a waythat will help you avoid hazardous obstacles, you must remove all personalbiases that could cloud your judgment. This is why I had you complete the MoneyMind exercise. Now you must have a methodology to assess the costs, benefits,and tradeoffs required to move ahead with your decision objectively.3. Deliberate ActionSimply put, this will answer thequestion, “As far as going forward with my proposed decision is concerned, isit yes or no, or both yes and no?” Once you’ve come to a conclusion, you mustfollow a clearly defined and well-organized series of action steps in order torealize the best possible outcome. The most systematic way to do this is tohave a disciplined process that walks you through all the important steps you needto take.
Joe John Duran is CEOand founding partner of United Capital, which consistently ranks as one of thenation’s fastest growing wealth counseling firms. He’s fueled by his passion tochange the industry and improve lives by empowering people to make better, moreinformed financial decisions. From CNBC to CNN, Joe frequently providescommentary on TV. He has been profiled in numerous publications, including the NewYork Times and Smart Money.
Please check us outon: www.mymoneycode.com
Hiç yorum yok:
Yorum Gönder