Do you even understand money?

We all want to make it out of the rat race.

If you are part of the Hive ecosystem, you are part of the rat race, don't fool yourself, a few million dollars in your account and a dozen millions in your crypto wallet do not get you out of the rat race, you're just part of the comfortable elite of it.

There are levels though, so instead of saying we want out of the rat race, let's just say we all want to be part of the comfy elite on the rat race. Sounds worse, but it's as far as we'll ever get, and that's fine you know?

But to actually get there, first you need to understand money, and sorry to say this but, odds are, if you are reading this on InLeo, you don't understand money; hell, I don't fully understand it, but I do try to keep learning every day and to be honest, I've found that most Lions could use my advice on this, so without further ado, let me share all the alpha and knowledge I have about money.

Key concepts revolving money

Paying Yourself First

This doesn't mean to neglect other things in life that need money to keep rolling, it means that you have to know how to prioritize savings and investments over bills and expenses. My dad always told me that the best way to become wealthy, is to assume that you earn 75% of what you really earn, to set aside 25% into your savings account, and to make a budget - and live by it - that relies on that remaining 75% of your income. If you have to cut expenses somewhere then so be it, but never live life spending 100% of what you earn. It is easier said than done, but it is not impossible, no matter your circumstances.

Investing in Yourself

This is probably the most important thing I've learned in recent years. The more you invest in yourself without indulging into shallow and petty shit, the better. Your well being is what will allow you to perform at 110% so take proactive steps to level up by reading, acquiring new skills through courses, exercising, and learning from past mistakes. The return on investment in self-improvement is unparalleled, opening doors to enhanced personal and professional growth. A good example is to invest in a gaming chair if like me, you spend 16 hours a day sitting in front of a desk.

Controlling Your Spending

We live in a shallow society. There's a popular phrase that goes around the line of "we spend money we don't have, to buy things we don't need, to impress people we don't care about" or something around that. It's true, frens. Society encourages consumption, but financial wisdom lies in controlling our spending. The first thing you have to do is to avoid going broke to appear rich: learn the difference between needs, wants and wishes, and then learn to control yourself and only buy what you need... Just don't forget about the point above, every once in a while invest in yourself. Analyze your expenses, categorizing them accordingly, and prioritize reducing spending on wants and wishes to build a sustainable financial future.

Increasing Your Income

Yeah yeah, this is easier said than done, but if you follow the above and you invest in yourself, odds are you are in a state of continuous learning and improvement and, given the state of the global job market, you will be able to land a job at one point. An extra job is not ideal because you are trading in time for money, and there's only 24 hours per day, but if you want to create wealth from a low financial stage like I did at one point, you first need to have extra money to invest.

Analyzing Your Expenses

95% of people do not keep a written budget. If you are one of these people, you have to change that tomorrow. Understanding and categorizing your expenses into fixed, variable, needs, wants, and wishes is crucial. A retrospective analysis of your spending from the last three months can guide you in identifying areas where you can cut back - get rid of the wishes, lower the wants, and prioritize needs based on importance.

Building an Emergency Fund

Establishing an emergency fund is a fundamental step in securing your financial future. Just like you can set aside 25% of your income for investing and saving, you must always have an emergency fund, because emergencies can definitely make you go broke. Most people live paycheck-to-paychek and they cannot afford a $500 emergency, leading to potential reliance on high-interest credit card debt. Have an emergency fund.

Paying Off Bad Debt

Credit cards are useful if you know how to use them, but you don't know how to use them, don't fool yourself. Get rid of that debt, destroy the cards, and never use them again in your life. Credit gives people a perception that they can afford shit they cannot, and makes you believe that you can give yourself a lifestyle you definitely cannot have. Do not get into bad debt, ever.

Jumping at Opportunities

Seize opportunities for personal and professional growth, don't be a coward, luck favors the bold. Whether it's taking a new job, starting a business, or negotiating for a higher salary, take action and pursuit opportunities, they often lead to increased financial success one way or another.

Building on Your Strengths

Identify and capitalize on your strengths, whether they lie in writing, management, mathematics, or other areas. Building a career around your strengths enhances your value proposition, potentially leading to increased income and job satisfaction. Don't be fooled, you don't need to be a Jack of all trades, don't waste time trying to get good at something you suck, it's better to become excellent at something you are already good.

Surrounding Yourself with Winners

Your network is your net worth <- I hate this phrase, is corny and so cringe that it sucks, but it's true. Cultivate a network of high-quality friends and mentors, and get rid of losers around you. Surround yourself with winners who share your values and aspirations and build a support network, where you provide each other guidance, motivation and experiences. Kings bring up kings and help each other, be a king.

Adopting Healthy Financial Habits

Building healthy financial habits takes time and consistency. Stick to a productive daily routine for approximately 66 days to establish these habits. When financial discipline becomes automatic, you'll navigate life's challenges with greater ease and resilience.

Choosing Your Partner Carefully

Your choice of a life partner significantly influences your financial well-being. Align with someone who is frugal, mindful about money, and shares your financial goals. A partner with a winning financial mindset can contribute to a harmonious and prosperous future.

Are you wiser now?

Odds are, you aren't. Wisdom doesn't come from knowledge or theory, it comes from practice and understanding. I am not an expert, but I do try to live by these concepts every single day.

Maybe one day, we will ~~get out of~~ climb to the elite section of the Rat Race.

Posted Using InLeo Alpha