It is not an entirely bad idea to do quick research through the business archives. This will help you discover many successful entrepreneurs who hit a great height of business success with the little they started with. For instance, Howard Schultz, Starbucks founder: he didn’t start his journey on a rosy path. Schultz paid for college with a loan obtained from the government and money from a part-time job. However, he has many entrepreneurial success stories to share today. From his series of experiences, he approaches life more philosophically. He once said in a speech, “a lot of what we consider to be luck is not luck at all. It’s all about seizing the day and taking responsibility for your future”.
What is money?
We all use money daily to make deals and transactions. However, what exactly is money, and how can it be earned? Money is an acceptable medium of exchange. To obtain what we need to survive, we need money. It can also be used to obtain goods and services as well as to repay debt. However, in today’s post, we are more concerned about the definition of money as the medium in which prices and values are expressed.
Value vs. Money?
Money is how much value you can provide to other people at the right time, place, and in the most convenient way. If you continuously aim to offer immense value instead of taking value, people will naturally be drawn to you and your various services. When it comes to making money, the easiest way to go about it is by creating more value streams for others. We all want to make lots of money and be successful in life, but we often neglect what is important.
What value do you offer to others? How do you offer those values? These questions are the most important if you really want to be successful and wealthy. Whatever you do, your long-term goal should be to create and focus on impacting lives. It may look hard to practice, but your net worth depends on that. Offering value is the best way to approach wealth generation. People will willingly exchange money to get access to what you want to give. Furthermore, this is more satisfying because you will be happy as much as you become successful.
For instance, if you are always caught in the web of thinking of how to make more money, try diverting your thoughts. Distract yourself and think of several ways to add value to yourself and your business. Instead of being someone that takes, try to build a sustainable system that gives something back. To become wealthy, you have to look for ways to add value to everything you do. That particular service you provide, other people are offering the same as well. Notwithstanding, you can make yours stand out by looking for ways to increase the speed of delivery of the service.
When it comes to money, it has to be emphasized that how much money we have is due to the amount of value that we can offer. Everyone wants more money. No matter how much money we have, it is never enough. The world is changing fast; the currency needed for the future lies in value creation.
What is your attitude towards money?
People react to money differently because we are all different individuals with different goals and ambitions. Money attitudes can be a predictor of financial success, especially when we consider the aspect of money that has to do with budgeting, saving, investing, and spending.
Firstly, what are attitudes? This is a basic word that we use almost daily in our regular conversations with people. Attitudes are the various characteristics that make up individual differences. Attitude includes; values, responses, beliefs, and other features that some consider personal.
Secondly, what are money attitudes? This has to do with individual responses, experiences, emotions, and behaviour towards financial management. As an individual, how do you feel about money? How do you react when the topic of money is being mentioned? What are the experiences that you have had because of money? For instance, some people grew up in homes where they are taught that budgeting is essential for financial stability. However, some people also grew up in homes where they don’t consider budgeting necessary.
Furthermore, when you recognize your attitude towards money, it will go a long way to help you manage your finances. Money has different meanings; it also serves different purposes for other individuals. That is the primary reason people act differently towards money. For instance, in some homes, they can easily spend money and incur debt, but some people are more committed to saving and investing.
Similarly, our relationship with money is different based on what we believe. Money makes us feel safe and secure. It is essential to have a healthy relationship with money; it leads to financial wellness. Our various relationships are formed through our daily experiences, emotions, and beliefs. Those experiences change our values, and they shape the image of money that we have in our minds. It is also possible for money to make some individuals feel insecure, especially when they cannot afford what they need. Now, if you are yet to identify your relationship with money, use this as an opportunity to discover your answer. Is your attitude towards money positive or negative?
Money attitude is the reason why some people fall for getting rich schemes. There are only a few people who have the necessary knowledge to realize that such schemes are after their downfall. Most of these schemes look like a good opportunity, but they are not. In finance, knowledge and a positive attitude toward money is power.
Saving, budgeting, and investing
Saving is income not spent or deferred for consumption. It has to do with how much you can put aside for emergencies. Before you begin to put money aside, you need to understand that the most challenging part is always getting started. If you want to save money easily, you have to begin by figuring out how much you earn and spend. Get a notepad and make a record of all your monthly expenses. Preferably, you can use an online tracker or spending app.
If you find saving challenging, you need to cut down on your expenses. Identify the things you spend money on but you can do without. Saving allows you to enjoy security because no one knows precisely what will happen tomorrow or in the next few hours. No one prays for something terrible to happen, but it is good to have money set aside to fall back on should something unexpected happens.
People save for different reasons. You may want to ask yourself, why is it so crucial for you to save? Even if you have enough to pay your present bills, you need to put something aside monthly.
Irrespective of your financial status, you need to master the art of budgeting. It helps you to achieve financial stability. Budgeting is the best way to track your spending and expenses. It also makes it easier for an individual to become financially independent. To achieve your short- and long-term financial goals, you need to begin on the right track by learning the system of budgeting. The first step to a successful saving journey starts with having a budget.
For your money to grow, you need to put it to work for you. If you don’t invest your savings, you will miss out on opportunities to increase your wealth. Many people are afraid of losing their money in investments. That is why you are advised to invest wisely in the right way. When you find an excellent place to put your money to work, don’t hesitate. Investing is the best way to earn higher returns.
Money gives you access to all the good things in life. If you don’t have enough money, it becomes difficult to pursue your dreams and passion. No matter what you want to do, you need financial backing to get off the ground level. Finally, money gives you the freedom to live life on your terms and by your standards. These critical concepts discussed above will help you get out of the money trap of exchanging time for money.
I hope you find this blog beneficial. What is your view on the financial topic? Don’t forget to share with friends and colleagues. Finally, connect with us for more comprehensive information and tips on bettering your finances. Thank you for reading till the end; we would really appreciate it if you could leave your views in the comment section below.
Recommended books for further reading:
- The Ultimate Finance Book: Master Profit Statements, Understand Bookkeeping & Accounting, Prepare Budgets & Forecasts
- Unshakeable: Your Guide to Financial Freedom
- Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money
- Money: The Top 100 Best Ways To Make And Manage Money – Ace McCloud
- MONEY Master the Game – Tony Robbins
If you are looking to open an investment account, follow these links below:
- Passive income
- Silver & Gold coins
- Interactive Brokers
(‘68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.)