1) Spending money can save you money.
I know you're probably thinking wait what? How does spending money save you money? Give us a minute to explain. See, when you spend money on the right things, it could save you a lot of money in the future.
Sometimes spending more money can save you a heap load of additional costs in the future. For example, if Vanessa chooses to buy a 15 dollar bag from China and by the way, no shade at all to Chinese products, they actually have some legit items. And Person Mary buys an original North Face backpack for sixty dollars. You'll find that Vanessa will have to buy another bag before the year ends due to wear and tear of the item while Mary could use the bag for another couple of years.
Another example would be if one person opts for an all inclusive medical cover and the other only for an inpatient medical cover, the person with the inpatient cover only will end up paying more money to the hospital or outpatient visits compared to the other one who pays a higher yearly insurance premium amount but incurs zero medical costs by choosing a higher, more costly insurance cover. This person ends up saving a lot of money. I hope it makes sense now.
2) Investors stay rich, borrowers stay poor.
They say give a man a fish and he will come back for more. But teach him how to fish and he will sustain himself. Same applies to the concept of borrowing money. If you keep on taking loans and borrowing money, you end up in a serious debt situation. What happens is you will take a loan to pay for whatever expenses, then take another to pay for more expenses. And when the last one is, do you end up taking another loan?This cycle will keep going on and on until one day you realize you're stuck in a trap where you have to borrow money to survive while taking up multiple loans can make you poor. Such a lifestyle fills up the pockets of the rich. Most rich people will stash up some money and interest earnings savings accounts in banks. The same money is what the bank will use to loan to people. The people then have to pay an interest on the loans and some of that interest is deposited in the rich or anyone savings account. We aren't saying you should never borrow money, but only do it wisely. Borrow money to purchase assets that will appreciate, borrow money for your business and only borrow money that you can afford to pay back comfortably. The key here is first having a plan to pay back the money before you ever borrow a cent. If you always find yourself asking for a pay advance, this is a red flag and it probably means you are living above your means. You should limit the amount you borrow and instead look for small investments you can make to grow the little you may have.
3) No one cares about you but the money you can bring.
For some people, this may be a hard pill to swallow, but it's 100 percent true. Don't lie to yourself that you're so important and your life matters so much to those around you. The reality is no one cares about you. Your boss sure doesn't care about you. They only want to see the numbers you can bring in. Your employees don't give a hoot about you. They only want their paycheck at the end of the month. The investors you want to fund your business don't care about you. They just want their money back with interest. The government and all other politicians don't care about you at all. You are useful only when it comes to voting and paying tax. It's a sad reality, but what can you do? All that everyone cares about is what you can do for them and the value you are bringing them. It could be your money, time or even company. The only people who may care about you are your family and friends. Don't take this personally. This applies to all of us, myself included. So how does this relate to money? You see, to make a lot of money, you need to create some value in this world, creating value is the only way to amass wealth. Well, unless your parents are super rich and plan on leaving you an inheritance in the millions, for most of us, we have to work to create wealth the old fashioned way, hard work.
So back to the main point. If you're an employee, your priority is ensuring you do your job effectively while ensuring you are bringing maximum value to the company and keeping your boss happy at the same time. The reality is most employers don't care whether you're a nice person or not or how kind you are. They only care about how much value you bring to their business.
4) your friends and family won't pay you back. Stop lending money to your friends and family.
This is a tough one. Saying no to people is frankly hard, and it's something a lot of people, including myself, still struggle with. I know of countless situations where a friend or one of my siblings would ask me for money and because I don't want to be rude or look selfish out of guilt, I would give them what they're asking for as long as it's not an insane amount. According to finder.com, after surveying 1417 participants on whether they had borrowed money from friends or family within the past 12 months, they found that more than one in three or 38 percent borrowed money from friends and family.And according to the same survey, the borrower still owed about $3239 in loans to friends and family. So it's unlikely that they'll pay you back. And from my own personal experience, very few of them actually do. When any of my friends or family ask me for money, I lend it to them as long as it's not a substantial amount with the acknowledgement that I probably won't get it back. Money is a sensitive topic. It can easily divide families and break apart old friendships whenever you are dealing or transacting money with family or friends, be cautious money has a strange way of stirring and bringing conflict situations. If you are lending money, always find out why they need the money first before giving it to them. It could be a serious need or something trivial, in which case I wouldn't give them the money. Also ask yourself, can you afford to loan them the money and not have it repaid? Or will it affect your finances before you help a friend or family member? Always make sure you're taking care of yourself. First, evaluate the risks because 80 percent of the time they won't pay you back. Instead of giving them money, you can share with them some of the tips for saving and making money.
5) But it's harder to stay rich than to become rich.
The Forbes world's richest list looks similar every other year, right? To some extent this is true. But when we take away the common names, the Buffett's Basso's gates, you'll be shocked at how often the list changes. At least 70 percent of the people on the list lose their status every other year. Most of them say getting rich is easier than staying rich. There are so many ways of getting rich. You can start a business, invest wisely, get lucky and win the lottery or inherit a ton of money. However, staying rich requires a few things that not everyone has. These include modesty, self-awareness and great discipline, to say the least.
6) Time is money.
One of the biggest differences between the wealthy and the poor is that the latter don't understand the finiteness and value for time. You see, money is entirely dependent on time management. Think about this, If every single decision you make in life is dictated by the need to protect your time and increase value output, you will certainly become rich at some point in life. On the contrary, most people have zero regards to time management. A good example is you'll see people wait in line for hours to get a free burger. Many people trade their lives away, stuck in a nine to five job. People will waste hours waiting on Black Friday deals to save a couple of hundred bucks. You will often see people argue online over trivial matters. These people clearly don't see the value in their time. And for those reasons and of course others, the money trail won't follow them.
7) The money you have is a direct reflection of the value provided.
This is painfully obvious. The amount of money you have either in savings, investments or earnings is a direct reflection of what value you have added to the world or failed to create. This is why people like Mark Cuban and Bill Gates are rich. They build companies that have created crazy amounts of value and have directly affected the lives of millions of people around the globe. If you flip burgers all day, no matter how good you may be at it, you haven't made a significant enough impact in the world. And as much as it hurts, this will be reflected by the zeros or lack thereof in your bank account. We are not belittling anyone's job. Everyone is important. But if you're still working for minimum wage ten years later, you don't understand how value and money works. So think about this Simple Equation, Making money == Providing value. Then see what value you can create in the world.
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