This blog is intended for educational purposes only. None of these posts are meant to give legal or financial advice. If you need advice you should consult an appropriate professional.

Friday, May 11, 2012

paycheck mentality

Most of us work for a paycheck.  This is what we're conditioned to do.  We're taught to be dependent on an employer for our survival.  Not very entrepreneurial is it?  The higher the income the better.  So doctors, lawyers, and other high earners are what we are taught to be.  Aim to not need a wage check.  A lot of times we're judged on gadgets we own, our income level, our job status, not on wealth.  Wealth is net worth not income.  They are very different.  Wealth is like a stored reservoir.  Income is like a flowing stream.  Those that are truly successful in this life don't need a paycheck.  They have a source of income or wealth other than a wage.  That's not to say they don't still work for money if they want to.  But they have the choice at that point.  Realistically most of us will need a job for a good long while.  It's what you do with the income you get from that job that's important.  Remember everyone is trying to take it from you.  Be careful with it!  It's valuable!  It represents hours of your life.  Have that shield up.  Kick those sharks out there that are looking to bite you.  Be on your own side when it comes to money.  Buy assets that produce their own income with money from your job.  And yes starting your own business is riskier and more of a hassle than being an employee.  I guess what I'm talking about here is more of a mentality than a circumstance.  Think like a wealthy and entrepreneurial person before you become one.  Think in terms of value and profit, and think like an owner.  It might just produce some positive differences in your life.

Wednesday, May 9, 2012

emotions of money

Money can be an emotionally charged topic.  We all have certain feelings when it comes to transacting with money in whatever form.  I think one thing to keep in mind is trying to stay as logical and rational as possible when it comes to dealing with it.  People say these days that money is one of the few topics left that's still taboo.  I enjoy talking about it.  It's no big deal really.  Fear and greed are two big emotions to deal with when it comes to money.  Money is just a man made tool.  It's used to get stuff.  Nothing more nothing less.  It represents power, sexiness, strength, freedom, security, and many other things to many of us.  And I suppose it can be those things sometimes.  The whole idea of financial independence is to have a stream of income to pay your expenses without having a job.  That involves putting off pleasure today for a better tomorrow.  In other words saving.  I believe this relatively new field of endeavor is called behavioral finance which seeks to explain why we do the things we do with money.  Who knows really!  I'd say we all do things that others would not approve of with our own stash.  But it's important to enjoy the day too.  There's some kind of a balance that I'm still not sure of between spending and saving.  I tend to fall more on the miser side.  That leaves me more money to run my a/c if I want.  I'm aware though that when you bring up money around some people they don't want to deal with it or talk about it.  I guess they figure everything will work out on its own without a plan.  I'm not sure about that one.  I tend to be more of a planner when it comes to money for sure.  The best thing I can come up with is it's good to respect each dollar and enjoy the day.