Success is having to worry about every damn thing in the world, except money.Johnny Cash
When looking into my past, I was never actually worried about money. It was always there! Plenty of it!
The thing about money is not how much you earn, but how much you spend.
I don’t know why people do not seem to understand this simple law of math. You can earn 1 million a month, it doesn’t matter! If your expenses exceed your income, you don’t make any money. As simple as that!
At least in my opinion, people focus on the wrong side of the equation! They want to earn more money! Everybody wants to earn more money, right? But what about the other side of the equation?
Talking about money, there is only one figure you really need to focus on!
How much percent of your yearly income do you save or lose?
It seems to be the life hack of a life time.
Don’t tell me how much you earn! Don’t tell me about your revenues in the financial market. Just tell me this one single number and I know everything that I need to know!
My attitude towards money is not healthy, I know. But brutally effective!
My first job was delivering newspapers to my local community once a week. Did I earn a lot of money? Actually, not at all. But this wasn’t important for me! Important was, that I did not had any expenses! Sure, I was just a very young kid! Why should I have expenses, right? You live at home, you get something to eat. Sounds perfect, doesn’t it? But well, I could have spend the money on something. Buying sweets, buying toys, buying whatever I wanted. But I did not!
Later on in life I started my apprenticeship. The income wasn’t that high either. It was around 800€ a month. But that did not matter! What mattered was that I did not spend much of it anyways. I have not bought the newest iPhone every single year. I have not gone on vacations. I have not gone to clubs, bars and restaurants. I haven’t, at least from my perspective, “wasted” the money! And so, even if you earn that little! It adds up quite frequently, believe me!
Up to this very day in life, I have never earned more than 1300€ a month from a single source of income and had even two years in the last five years where I did not earn anything, because I was at school or studying full-time in the master project. But that doesn’t matter! Because it’s not about how much you earn, it is about how much you spend.
I have a yearly statistic dating back to 2011 where I can tell you each and every income and expense I ever had. Every single financial transaction! And what have I learned through that is the following.
Your financial situation is the direct consequence of your story you tell yourself about money. For some, money is something you earn. For others it is something you make. But there are people out there that just have money, or attract money, or lose money the moment it enters their bank account.
You need to truly understand your personal story about money.
Some people feel good when spending money for something nice, others feel bad when doing the very same thing. In the end, money isn’t real. A 100€ note is just a piece of paper. What makes it so valuable is the concept that stands behind this piece of paper. You can go to another person and exchange the bill for some food, or cloths, or whatever you want.
For me, I have a clear financial goal! That’s the reason why I spend so little but save so much. But in your life, you need to set the marks. You need to define the goals you want to have.
In the end of the day, having money doesn’t change anything. It’s what you can do with the money that makes the difference.
If you do not enjoy your financial situation, just look into your past and figure out what has lead you to this very moment in life? Which decisions brought you hear? And well, after understanding this. Just figure out a way how to get out of there! And I am sure, you already know where you should start, your expenses!
What is your story about money? Are you more on the spending side of life, or rather save the money up for the Porsche one day as well?
See you next time!