How many times have we heard it? Young studs who all of a sudden come into money. It's even happened to the best of us. Anthony Robbins. Will Smith. A lot of the movie stars go through it. A lot of entrepreneurs go through it.
What am I talking about exactly? Well more specifically I'm talking about self sabotage. And more specifically I'm talking about getting back to the basics when it comes to managing your money.
Anyone heard the saying, the more money you earn the more you spend? This is especially evident in the scenarios where your average Joe wins the lotto and then you check back on him 5 years later and he is in even bigger debt than he was before. Just with nicer shoes and a better haircut.
But why does this happen? Well let me share with you another famous saying. "Its not how much money you earn, its what you do with it" A lot of people are in the financial situation they are in right now because of the way they manage their money. This is tied deeply with spending more money than you can earn, and not putting money aside to invest it.
In terms of Anthony Robbins, well let me tell you a little bit about his story. He came into a lot of money when he was quite young. Doing speaking and seminars. This was such a contrast from the life that he came from, which was poverty riddled. He came across two problems when this happened. Firstly he still had all his old friends around him, and they would cut him down because he wasn't like them anymore. N because of this he self sabotaged himself and gave all his money away or spent it like there was no tomorrow which resulted in him begin in a worse position than when he started.
What is the lesson in this? Firstly that if you want to attract wealth and money into your life then you are going to have to have the mindset to be able to keep it. Secondly as part of that you are going to have to go back to the fundamentals. Like paying yourself first. Buying luxuries on a reward basis. Consistently investing a proportion of your money. And the more you build on creating an abundant and wealthy mindset the easier this becomes.
With that in mind, remember that money does not equal happiness. Money will not make you feel more fulfilled. Money will not make you feel more loved. These are all thing that you must find within yourself first before you can really understand the benefits and lifestyle that money will bring.
Young Investor
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6 comments:
Hello!
I believe your name is Jennifer? My name is Eric and I am also a relative youngin' (I'm 20) trying to make a headstart in the financial realm. I saw your link from The Simple Dollar and was delighted to see someone my age blogging on PF.
I've read/followed so many PF blogs that have all great advice but it's just nice to find another really young person taking charge and having the same enthusiasm about all of this as I do.
I usually am selective in my subscriptions (or else I'll have a ton!) but I am compelled to follow the postings on this new blog. I hope to read more posts specifically relating to our age group and gaining more practical knowledge in the process.
Best wishes!
Hi Eric,
Thanks so much for stopping by the blog!
I'm glad that you are enjoying the content and like you said it is also good to find other like minded people who are my age.
Can i ask you what has inspired you to look into this area?
Thanks
To many more posts and a lot more comments =)
Young Investor
Thanks for the reply Jennifer!
Honestly, I can't really remember what brought about my enthusiasm. The farthest back I remember was being handed a personal finance book right after my high school graduation.
I glanced over the material but somehow got really interested in it. It was extraordinary: the next thing I knew I was on the internet scouting for more information as well as reading more books.
The more I delved into PF, the more I realized how important all of this information is! Thinking about it now, I feel incredibly blessed to understand the importance of finance at an age when most of my peers don't care or know about.
Things ranging from credit records and emergency funds to Roth IRAs and asset allocations are so crucial I can't believe most people our age don't know about them. I honestly feel that every young person should be taught a mandatory course on PF (a bit more practical than a chemistry or history class if you ask me!)
Anyhow, I'm sorry about my ramblings...getting carried away! However, I'm also curious about how you got interested in this area (enough to start a blog about it too!) Although you haven't talked about your own financial journey in depth yet (I'm sure you'll get to it!), I believe you are very knowledgeable and have been successful in implementing the practical things you've learned about saving and investing. That is something I'm currently working on personally...actually applying the knowledge and tips that I have been reading over and over. Now that I've finally set up an emergency high-yields savings account, I'm working on setting up a Roth IRA. Would love to hear your thoughts on something like this!
Sincerely,
Eric N.
Hi Eric,
Can I ask which book it was that started you on that journey? None the less i think its great that this book took you on a quest to find out more information in regards to this area.
A lot of young people these days like you said don't know any better or have closed minds when it comes to making better financial decisions in their lives.
"I honestly feel that every young person should be taught a mandatory course on PF"
I whole heartedly agree with this comment and to add to that i think school needs to teach us some basic life skills as well.
"That is something I'm currently working on personally...actually applying the knowledge and tips that I have been reading over and over."
I like you I am still young. But what I have tried to achieved is a group of people surrounding me that are knowledgeable in areas in which I'm inexperienced in.
But i think you are onto something when you say you are applying what you are reading over and over again.
Action is the surest way to success. Because when we take action we can then take corrective moves to get us closer to what we want.
While this is personal finance blog its also mixed with personal development as i believe each is as important as the other.
So while i wont be giving out specific advice i will be giving tips and hints and have interviews from people that are knowledgeable in this area.
In terms of my personal finance. In the process of getting into some managed funds and buying my first investment property.
But i think the most important thing is that we get into the market and start investing today.
Young Investor
I feel like I'm taking over your blog with my comments!
Anyhow, I was given the book, "The Road to Wealth" by Suze Orman. I'm not sure if this is considered a good PF book but it did open my eyes to a whole new area of life I had no idea about. I think the book served as a springboard for me to learn and take action for my financial and personal future. I believe that was one of the most important moments in my life.
I neglected to congratulate you on your awesome consulting position! I would love to be surrounded by a great team like that and I wish you the best at Investment Realty. I'm also astonished that you're already working on your first investment property. I'm still too much of a novice for that but something I'm looking forward to learning also. I feel like there's so much to learn yet so little time to explore everything!
Hey Eric,
Well i think that your comments are great and insightful so you can take over my blog with your comments anytime! =)
Sorry that i haven't been on here lately, I've just spent the last 5 days at an internet mastery seminar and i even got to do a presentation on stage.
That was SOOO amazing. From what i have learnt about creating wealth in your life, it really is ABOUT being passionate about what you do. N its that passion that people want to be apart of and want to follow.
That's so great that you want to learn about investing and i can see your passionate about it.
So wish you all the very very best and let me know if you have any more questions, i would be more than happy to help.
Young Investor aka Jen
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