It’s not about the money you make, but the money you are able to retain after winning. In fact, although it sounds contradictory, money is not going to solve the financial problems alone (often increases).
The wealth and financial freedom is a matter of mental attitude before anything else, so when we teach financial education, we always explain that it is a personal profession itself you should exercise regardless of your job, and that requires work from the inside out, that is, of who you are, what you have, and not vice versa.
If you think that money is not important to you, money is not for you. And if you think that money is a goal to achieve happiness, and money is for you not attain happiness much money you have.
In fact, money has no intrinsic value. They have all the things you can get with money. And not talking about material things, but of peace, security and freedom: peace of mind that you’ll continue to receive an input of money to cover the basics. Future security even if you lose your main income, you would have income from other sources. And freedom in every way to do what you want to do.
But at any time, you should be able to save 20% of your income minimum (save it and invest)
What is the most common mistake that people comment on when they earn more money?
The main problem seen on the finances of those who begin to make more money is to adapt. Say you adapt your life to your new income. And they do apparently because they can afford it, but as we said before, the fact that today can afford something does not mean you can afford.
The more money makes you raise the self-esteem and have great self-esteem, makes you have more confidence in yourself and in your decisions. And this psychological fact explains the enormous difference between a people who believes his fortune gradually, and another that of overnight starts to make more money or get a strong inflow of money from an inheritance or lottery surprising revaluation of a block of shares.
In both cases, two people have the same confidence in themselves and in their decisions, but with the difference that you have a false security, because it remains ignorant in financial matters than before to make money and therefore their decisions are probably not too smart. And more dangerous … the desire to show others how well it goes in life (essential to destroy your personal finances beginning).
In our educational system we are taught mathematics and many other subjects. You can even in college to give us the necessary knowledge to go out there and make money, whether we speak as a professional in a company, as well as creating your own business, but unfortunately, we are not taught the basic pillars of financial education and interior work regarding our finances.
Sometimes, before talking about money, you should talk about the beliefs of people on happiness. And let me explain at this point, because there are people who would be happy if only they take the life of the owner of Playboy magazine. In short, and as we have said on several occasions, if you are looking for happiness, you’ll never find, because happiness is not out and has nothing to do with your possessions.
That’s why many wealthy say money cannot buy happiness, but very few people on the Forbes list them feel unhappy with their fortunes. Why? Because they have a purpose in life. They are managers, are entrepreneurs, they are creators of value, create jobs and improve in one way or another society.
And to achieve financial freedom, you must have one purpose above all, as very few people get rich without wanting to create or build, or not to be passionate about what they do.
Warren Buffett, Tony Robbins, Richard Branson, Bill Ackman … could retire tomorrow and meet what the middle class thinks it would be a great dream: to travel the world and spend all day longer.
But that, for them, is not happiness, nor is freedom. They call it boredom (empty life), which explains why one gets fulfill that dream, usually ends in two ways: wrecked to have been bored, drunk, drugged and played their money in casinos…. or the smartest, returning to work as did the boy surfer, and find a new purpose in life.
Finally it is not money, but the way we measure success.
How do we define exactly success? We would find many different answers, but ultimately, I think that it could understand anyone that success is not measured by money you have, but by the amount of time you spend doing what you really want to do.
That said, if we have two people: one with a fortune of 10,000 million and another with a fortune of three million, can we ensure that the first is the second most successful in terms of wealth creation, of course, but what? we could measure happiness everyday of these people? It is of course not.
If you’re doing what you want to do, and that makes you happy, then you are successful right now. If you have a peace of mind and financial security, and financial, then freedom probably still have success in the future.
And now we only need to how to measure our level of security, tranquility and financial freedom.
As explained in a previous article, the health of personal finance is measured only by the amount of money that we perceive of our assets, that is, the amount of money we perceive without work it.
If this money is not enough to cover your lifestyle, you probably do not have security or peace for the long term.
At the time that this number is adequate and devote your time to what you like, which we hope are not only parties and drugs, and conserves one purpose- then we can say that you are the real rich man passionate about what he does, with multiple revenue streams and it is happy.
Ironically, Warren Buffett, with a fortune estimated 60,000 million, defined success saying:
“If all those people who you wanted to be liked, you really want, that’s success.”