5 Financial mind shifts that made me 100% happier
Our culture emphasizes spending. And spending is fun, I get it! Especially in my current location of Southern California, there is a lot to spend on-just the lattes alone are $7! But my focus here is spending less without making you miss it too much, investing the difference to make it less stressful when the inevitable boulder drops on your driveway so to speak. Be ready for whatever life throws your way. That part is the most important because above all it is about having options, as many as possible!
I was thinking about all the money I spend, people in general actually spend, to “feel happier”. You know, the $10 for Netflix, the splurge on the spa, the manicure (again, easier to do here because there are 10 nail salons for every one bookstore but that is a topic for another post:). The questions is, is this making you happier or is it just what you are supposed to do to be happier? What if things like writing or building a business actually made you happier? What if the money you were spending went to growing as a person and growing what you are actually passionate about instead? This got me thinking about the mindset shifts I have gone through in the last year or so that I have found super helpful.
See money as a tool to grow your wealth rather than something to be saved and “squirreled away”. Basically, you need to use your money to make more money, in other words your money should never (ok very rarely) be sitting in a bank account.
Get rid of your subscriptions and invest in your own learning. Taking the money you spend on subscriptions like Netflix and invest in yourself instead….online classes to teach Canva basics so you can build your own digital course, a class to learn how to make a layer cake like a pro, just improve yourself.
Invest and prioritize acquiring assets over liabilities. New cars don’t interest me nor does more stuff like expensive furniture. What interests me is buying something like real estate that grows in value and doesn’t lose value. Look at that. And check out this gem by Paula of Afford Anything to learn more it. Always ask yourself ‘is this going to be worth more in 10 years or less?”.
Be smart with everyday spending- For example, realizing that the food you make IN can be almost as good as the food you eat OUT. And I love trying new restaurants. A lot. I don’t plan on giving it up but they are very expensive so just buy really good ingredients and make delicious food at home. For example, I bought this pricey Detroit Style Pizza Pan which at $40 is indeed spendy but is honestly half of what it costs for two people to eat out in LA, and can be used over and over and over. Oh, and get the latte if you love it but just don’t get several a day.
Surround yourself with people who know more than you do-This one is key. I have heard many times that you adopt the mindset of the 5 people closest to you-they have the biggest influence on your life. Well this is true in the financial realm as well. A short vignette for you. My uncle (my dad’s twin brother) was a stockbroker. Every Friday he would come over and he and my dad would sit down and talk stocks, which ones to buy, what the market was looking like that particular week. And that is what informed my dad’s decisions. He would often share that information with the group of neighbors he and my mom played cards with. This basically showed me to seek out people who know more than me financially and share that information to make others more well informed. Make it a point EVERY DAY to raise the bar for yourself by bringing more financially smart people into your orbit and passing along what you know.
Educate yourself financially every single day. Yep, learn something new to grow every single day. Be it a finance article on Medium. A chapter of a book. Be curious and learn. For a comprehensive list go here. My current top favorites are:
The Financial Independence Show- Hosted by Cody Berman, a 30 something who has grown multiple passive income streams.
Mad Fientist Episode with Bill Perkins- Interview with the author who wrote Die with Zero- a concept I am endlessly fascinated by, basically don’t save all yor enjoyment until the end of your life when you might not be healthy enough to enjoy it. Bake the great experiences into your life and don’t leave it all until the end.
The Almanak of Naval Ravikant- Here is a great youtube video walking you through the highlights of this awesome book. This one is mind blowing.
Get Rich Slowly- Great blog, this one taking you through “wealthy habits”. Worth a read for sure.
The Millionaire Fastlane- Do ignore the cheesy cover but pay attention to all the gems inside
Focus on multiple revenue streams-As I’ve said in this newsletter before relying on one or even two is much too risky.
Thanks for reading!
Lesli