During the money episodes we always speak about how to make more money to be richer and richer but the main reason why you should make more money is that you shouldn’t be a slave of it, anymore.
The majority of the resources of this article are taken from this book and from Dan Lok’s video
During my life, I have understood that is the habit which is really important and not the amount. If you also make $1000 dollars each month and you don’t manage it well, how can you think you will be able to manage $10000 or $20000 well?
Fixed costs are always present and they depend on one different factor, like someone’s lifestyle, the rent, the debts or also the total amount of money you have. For example, if you don’t have much money, your fixed cost can cover 90% of your total money pull.
Investments are mostly important to make a concrete mindset. All the richest people in the world invest in something. When you think of investments you generally think of stocks, to obligations, to startup and so on and so forth but there is also another time of investment which is, according to me, the most important one, it’s yourself. Money is also useful to invest in yourself, to be better and to make more money. If you don’t have this mindset and you prefer don’t cure yourself, why do you work and, mostly, why do you live?
An old saying goes “Money attracts more money”. This is true because some can let you not touch your investment bucket which shouldn’t be touched for at least 30 years. This is because, if you need some money and you take it from your investment, you have to pay really high fees (around the 30% of the total) than you have your money saved in banks
Guilty-free spending money
If you don’t set a precise percentage of guilty-free spending you risk to invade the other buckets of money and don’t follow your real plans. If at the beginning it can be really high, setting some saving plans during the different months can help you to save more money. For example, if you spend $800 in guilty-free spending and you want to diminish all these spendings because you want to invest them or you want to spend them for something of more important, it would be better if you diminish it really slowly but constantly rather than really quickly but just for few months. In the market what really makes the difference is time
I am not American but, also listening to someone, I know that rich American people give society a huge part of their capital to thanks them for the possibility they have achieved in their own country. The reason why someone should donate is different but, the most common one is: being happy and being liked.
According to some studies the more you give, the happier you become. This is also true if you prefer giving money to others than if you spend it on yourself.
Another reason why someone should donate is for the so-called “liking effect” described by Robert Cialdini, author of Influence and Pre-suasion.
According to him, one way to be liked by other people is donating and this is most important if you are a rich person