Getting from good to great financially is not luck; it’s about intentional action and planning around your goals. There’s a difference between poor and broke,. Most times, poor is a result of bad financial decision. Poor is when you know how to make money but need to figure out what to do with it. Broke is when you make money, but you can’t manage it. Being broke affects your kids and your marriage. It affects everything.
I remember being broke because of my parents’ bad financial decisions when we were kids. When I became a parent, I wondered, “how can I keep my kids out of trouble?” At first, I thought I had to make enough money to keep my eyes on them. However, life has shown me it’s more than making money. It’s about making the financial decisions that allow me to set the schedule I want. That doesn’t happen by accident. To live the life you want, select the program you wish to, and be more present in your kids’ life, you have to understand financial decision-making and how to make the most of what you have.
Becoming a student of wealth.
The first step to going from good to great in life is to change how you look at your finances. So many people go through life without thinking about their finances. They work, get a paycheck, pay some bills and spend the rest. Or they may have a small saving and look at it occasionally, but they don’t apply strategy to their decisions. To change your financial situation, you must become a student of wealth and make decisions like a business owner.
Building a productive mindset around your financial decisions.
Do a reality check of where you are right now.
- What are your assets?
- What’s your net worth?
- What are some things that you can do to improve it?
- What are some simple systems and simple habits to create?
- What income activities are you doing, or can you add?
How can you save more?
- Do you understand compound interest?
- What are the different financial instruments that you can use to make your money work for you?
Financial decision making during a recession.
Recession-proofing your life means thinking of your finances as a business. Treat your finances as a business, and you hold them accountable like a business. Becoming a student of wealth teaches you how to make smart financial decisions, look at your finances as a business portfolio, and move your life from good to great.
- Increase your income to reduce your expenses and invest the difference.
- Find money that’s already there and use it to create passive income.
- Diversify your net worth so that if one market crashes, you’re good in another
Look into real estate.
Real estate allows you to pay fewer taxes and win at the money game. It’s a game that the government uses to get you to flow your money the way they want your money to flow. Rich people study tax rules to put their money in places that reduce taxes. Don’t be the one that knows nothing and is paying that hefty tax bill.
Take your finances from good to great.
Create a wealth plan for yourself by investing in the long game, not just making it quick overnight. You can’t go from good to great instantly. It takes planning, goal setting and re-educating yourself on money. Your investment strategy should create security and income to help you through tough times. Build something that can withstand crazy times. Become a student of wealth now by learning how to evolve from being an income earner to a wealth builder.
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