Money Mindset and Macro View
Most people end up doing opposite of what they want in life thinking what they’re doing will take them closer to what they want.
Most people want to have ample amount of time to spend with their family and live life on their terms. They think making more money would help them save time instead of realising that saving time itself is the key to achieve this.
Here’s what happens —
- You want to have extra hours
- You work more hours
- To make more money
- So you can earn back those extra hours
- But you end up creating a complex system
- Which takes away the limited available time you have
Apps which claim to save our time, end up wasting most of our time-
- Their goal is to give us small dopamine hits every time we check a new video/reels/notification etc.
- Apps like expense tracker claim to save our time but instead keep us engaged with it by sending notifications.
If you want to save your time, you need to understand that you need to
- Cut back on things which cost you time and aren’t helping you in any way.
- Reinvest that time into things which save you more time.
There are 3 main pitfalls that you need to remove that could be a potential roadblock-
#1. Remove the ability to say “yes”, instead ask “why”
Start asking “why” every time somebody asks you to say “yes” to something.. For eg- Accepting cookies from a store on buying more or getting 100% cashback on ordering food online
Signing up for unnecessary services which might even be free.
Things like these indirectly rob you of your time, freedom and money. It might benefit us in the short term but in the long term it will always benefit them, not us.
#2. Emotion Management
Inability to manage emotions of people create problems which occur due to lack of clarity about what they exactly want.
Having patience and getting rich slowly is the foundation to have the right money mindset.
Making money needs a specific mindset. Without having the right mindset it is impossible to achieve any goal yet alone the financial one. You should take care of these-
- Understand that making money is not a get rich quick scheme.
- Know that different financial instruments might help you achieve your goal a bit early but there are no shortcuts to it.
- Making generational wealth takes time, it takes generations, you can’t just create generational wealth overnight.
- Every single thing you do is a part of your financial plan, it either takes you closer to it or away from it.
- Learn to track your time by doing a time audit and money audit.
- Cut back on things which cost you time that aren’t helping you move closer to your goals.
- Everything you do should fit your plan, not the plan of other people who wants to sell you something.
- The right money mindset should give you freedom not stress or anxiety.
- Doing root cause analysis helps you make better decisions in future.
Root cause analysis means finding the root cause which led you into doing something. Here’s how you can do it-
- Figure out why you took that decision in the first place.
- Find where did the need of taking the decision originate from.
- See if the need of taking a decision was internal or external in terms of origin.
- Internal is most likely due to emotions, external is most likely due to unfiltered information, both are disastrous.
Start by finding out what your macro view of life is, then do an audit of whether your current actions will help you lead where you would want to be tomorrow.
For eg- By 2030, I want to have -
$10 Million in assets
QUESTIONS TO ASK YOURSELF-
Q-1 What do you want out of your life after 10 years? Do you want to be healthy or wealthy or both? Whatever you want, keep it specific, for eg- “ i want $10 million “ in cash flow “ ?
This stuff is purposely made confusing so that people don’t understand it and they keep roaming around it their whole life. The cost of roaming around a circle is your time.
Q-2 Does gathering assets matter if you want $10million in cash flow after 10–20 years or vice- versa?
Q-3 Should i go for cashflow or go for assets that give me cashflow, If the end goal is cash flow only?
A- You can either have assets or you could have cash flow but not both at the same time.
Assets for me is-
- Gold and Silver
Cashflow for me is-
- Dividend income
- Rental income
- Monthly income from businesses and investments
More cash flow can facilitate more assets but if you need more cash flow then you need to acquire more cash flow cows and not assets.
Making money is all about taking consistent, baby steps which align with your goal and that can only be done if one has the right money mindset.
We hope the information shared above helps you build that mindset and achieve that goal.
Think what you want out of life, decide your macro view and do an audit of current actions, see if they are aligned with your macro view.
Also, here are some useful links to save and reference. Let’s go and help you achieve your goals. ;)
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