Money

Why is money such an uncomfortable topic for so many people, and what should we keep in mind when discussing it?

Money is uncomfortable because it triggers a wide range of personal and societal issues. Our individual "money stories" are shaped by our backgrounds, families, class, and culture. It's crucial to recognize these influences and that our experiences are limited by who we are and where we come from. Discussions should be approached with honesty and care, both internally and when sharing with others. It is also important to acknowledge that experiences with money and privilege vary widely and that these conversations are not universal.

Perplexity NotebookLM

What are some common "money stories," and how do they impact our relationship with money?

Many people have conditioned relationships with money based on their upbringing. Common themes include experiencing financial insecurity in childhood, coming from a family that is focused on saving/scrimping, having immigrant experiences with class and income changes, or internalizing the idea that money is inherently bad. These stories create beliefs and anxieties around scarcity, self-worth, and generosity. These stories can lead to a confused and neurotic relationship to money.

How can understanding your "money story" help you improve your relationship with money?

Identifying your personal "money story," the root of your anxieties and conditioning around money is a critical first step in addressing those issues. By recognizing the false narratives influencing your perspective (like scarcity or that "more is better") you can begin to untangle what is true vs. what's conditioned from your family and/or the larger culture. Awareness of these old patterns and where they come from helps to challenge their hold on your financial behavior.

Why is it important to talk openly with friends about money, and what are some benefits?

Talking about money with friends helps to normalize the topic and break down the secrecy around it. Openly sharing how much we make, save, or worry about can challenge the false narratives and shame that often surround finances. This practice allows for support, both in our attitudes about money and our practices for dealing with it. It also allows us to offer and receive help as needed in a vulnerable but meaningful way.

What are some practices to deal with the feeling of "not enough" and the scarcity mindset?

A variety of practices can help address feelings of scarcity and "not enoughness". This includes doing psychological work around our relationship with money and seeing it as a neutral resource or energy exchange; understanding the source of your generosity and/or your spending; regular generosity practices like tithing; and using money as an expression of care and love. It is also helpful to balance planning with an understanding that there will be ebbs and flows to our resources.

How does meditation or mindfulness practice help us relate to money in a more balanced way?

Contemplative practices help us realize that our sense of security does not depend on external conditions. Meditation and mindfulness teach us to tune into the present moment, rather than always searching for safety in the future. This provides a calmer perspective to approach financial issues and allows us to see money as a neutral resource with power that will reveal our conditioning. It can also provide awareness of our clinging or our aversions that often come up around money.

How can we practice non-attachment with regard to money, given our cultural tendencies toward material wealth?

Non-attachment doesn't mean ignoring practical concerns, but rather finding a deeper sense of security that is not dependent on money. Contemplative practice helps develop a sense of being okay in the present moment independent of current conditions. This includes seeing money as an energy exchange and that it is a resource, and being open to a more trusting and less uptight relationship. Also developing an understanding of interconnectedness through generosity and relationships offers another way to find security rather than accumulation.

If you're someone who experiences a lack of financial security, what practical advice can be given, recognizing the privilege of those giving the advice?

It is important to recognize that financial difficulties are often deeply personal and specific. It is important to prioritize community, connection, and inter-relationships when experiencing financial distress. There can be a lot of shame and fear around this which further isolates. Reaching out to people, supports and/or institutions for support can be an important way to seek help. Practicing self-compassion in the face of financial difficulty is also essential. Remember, seeking support is an act of generosity to others, as it allows them to build merit by offering assistance.

Money

It's not about the money. That was going to be the alternative title for 50 Interviews. Perhaps it was the right title all along. I need to be reminded of this.

More often than not, when money becomes the prime driver for a business, the business fails. If you are only it for the money, it becomes a job.

Money is needed to: 1. Qualify a business vs. a hobby (read Money Pit) 2. Keep a business afloat 3. Provide resources to take the idea further 4. Support others who support the idea by allowing them to earn a living at it.

Self-employed or entrepreneur?

Money and momentum

What kills momentum? When we lose focus. If you have a client demanding attention, that attention comes at a cost. You have to turn away from whatever you are working on to give it your full attention. The added hit is that because another set of eyes will be on the result, your accuracy demands more of your creative energy.

The Law of Compensation (karma)

The law of compensation states that what you do now comes back amplified at a future date. All you need to do is give without worry about the immediate impact of your actions, without worry of how or when it might pay us back in the future.

Dan Lok - F.U. Money

"Blunt, outspoken and brutally honest."

I admire authenticity. It's a rare trait these days.

F.U. Money is about having the income to live a life you love. If you are constantly worried about money, life feels like a constant struggle. The way out is not to distract yourself from the problem, but rather to face the problem head on.

F.U. Money takes the power away from the money itself, and puts it where the motivation to make it actually is - and that's what money can do for you.

Money can lift the weight that the lack of money imposes.

Money is a tool to generate wealth for yourself and others.

Money frees up time. If you can afford to hire someone to hand that ceiling fan, you don't need to waste an entire weekend trying to do it yourself, and odds are it'll be done better.

In thinking about money, you may need to make a subtle, but critical shift.

My notes & highlights follow...

The most important questions to constantly ask yourself...

First off, millionaires don't become millionaires until they become obsessed with the idea. They sleep, eat and spend their time thinking, “How can I make my F.U. Money as quickly as humanly possible?” They take every action into account.

Next, they constantly ask themselves, “What have I done today that will move me closer to my F.U. Money?”

Dashboard

Don't wait till month end to review your results. If you need to adjust your effort, you need to know soon enough for it to make a difference.

For me, I found a formula that worked well. I call it the 10 day, 10k sprint. If I put in sustained effort, I could generate a backlog of $10k in 10 days. Usually, it was the final few days of the 10k sprint is when the majority of the 10k arrived. What often hurt me was success too early in the 10 days. I'd throttle back because I felt I had a buffer. After the 10 days, I'd take couple days off. But then, I'd get start up another 10k sprint. Using this strategy, in less than 9 months, I should be able to build a backlog of 300k.

I'm adapting Dan's questions for his DIGs (Daily Income Goals) for my 10k sprints:

  1. Where do I stand today in relation to the 10k target I set?
  2. What’s the most efficient use of my time right now?
  3. What’s the payoff of this activity?
  4. What objectives do I need to accomplish?
  5. What must I do to accomplish these objectives?
  6. In what sequence should I complete them?
  7. What would Dan do in this situation?
  8. What would massive action look like?

If you’re not hitting your D.I.G., then you’re not hitting your weekly income goal. If you’re not hitting your weekly income goal, then you’re definitely not hitting your monthly income goal.

Others

The universe delivers what you want through others.

Unless you have a money press, money comes to you through others.

Have you ever googled How to Make Money? Here's a good result with 32 legitimate options.

Try a Hypersearch!

If you do, you'll see a common thread. Most everything we need to do to make money involves other people. Money has to flow from somewhere. And in order for money to flow out to you, it most flow out from someone else.

YouTube 10 Websites That Will Pay You DAILY Within 24 hours!

The Psychology of Money

Title: "The Psychology of Money" by Morgan Housel

Key Takeaways

  1. Pay the Price: Investing comes with a price - volatility. Higher expected returns require the ability to stomach larger swings in portfolio value.

  2. Never Enough: The tendency to constantly compare oneself to others and feel inadequate, no matter one's wealth level. Social comparison can lead to envy and poor financial decisions.

  3. Crazy is in the Eye of the Beholder: What seems like crazy financial behavior to one person may be rational given another's background and life experiences.

  4. Peek-a-Boo: Preparing mentally and financially for unpredictable "black swan" events is more useful than trying to forecast them. Missing the market's best days can severely impact long-term returns.

  5. The Seduction of Pessimism: Humans are psychologically drawn to pessimistic outlooks, which can distort our investment decisions. Progress happens slowly while setbacks occur rapidly.

Financial success is more about mastering your behaviors and emotions than just having financial knowledge or skills. Controlling greed, fear, and having the temperament for long-term investing is crucial.

There is a difference between being rich (high income) and being truly wealthy (having money saved/invested that provides options). Wealth provides freedom and control over your time.

People's experiences shape their financial attitudes and behaviors. Understanding your own perspective from your life experiences is important.

Rules and budgets are less important than having general guidelines that align with your goals and changing them as your life situation evolves.

Learning from broad human behaviors across history is more valuable than focusing on specific historical events when managing money and expectations.

Thinking probabilistically about potential outcomes, rather than making black and white judgments about success/failure, is wise when making financial decisions.

Defining "enough" wealth to be content, rather than always seeking more, is challenging but allows you to live a more meaningful life aligned with your values.

The purpose of wealth should be to fund options and control over your time, not just accumulating more possessions or status symbols.

Morgan Housel's "The Psychology of Money" offers several key insights into how our attitudes and behaviors around money impact our financial well-being. Here are some of the most important takeaways from the book:

Understanding "Enough"

One of the most crucial financial skills is learning to be content with what you have. Housel emphasizes that "the hardest financial skill is getting the goalpost to stop moving"1. Constantly raising your expectations and financial targets can lead to frustration and disappointment. Instead, accepting that you might have "enough," even if it's less than others around you, can lead to greater satisfaction and financial well-being1.

The Power of Compounding

Housel highlights the extraordinary power of compounding in wealth accumulation. He uses Warren Buffett as an example, noting that "$81.5 billion of Warren Buffett's $84.5 billion net worth came after his 65th birthday"3. This underscores the importance of time as a key factor in investment success. Housel advises that "if you want to do better as an investor, the single most powerful thing you can do is increase your time horizon"3.

Freedom as the Ultimate Wealth

True wealth, according to Housel, is not about the amount of money you have, but the freedom it provides. He states, "The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays"1. This perspective shifts the focus from accumulating wealth for its own sake to using money as a tool to achieve personal freedom and happiness.

Saving vs. Earning

Housel emphasizes the importance of saving over earning. He points out that "you can build wealth without a high income, but have no chance of building wealth without a high savings rate"2. This highlights that wealth accumulation is more about controlling expenses and consistently saving than simply earning a high income.

Understanding Risk and Uncertainty

The book stresses the importance of being prepared for unexpected events. Housel advises, "You should like risk because it pays off over time. But you should be paranoid of ruinous risk because it prevents you from taking future risks that will pay off over time"2. This balanced approach to risk can help in making more informed financial decisions.

The Difference Between Getting and Staying Wealthy

Housel distinguishes between the skills needed to acquire wealth and those needed to maintain it. While getting wealthy often requires ambition and risk-taking, staying wealthy demands patience, paranoia, and consistent saving4. Understanding this difference can help in developing a more comprehensive approach to long-term financial success.

By internalizing these lessons, readers can develop a healthier relationship with money, make smarter financial decisions, and work towards achieving true financial freedom and satisfaction.

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