Friday, 28 December 2018

WEALTH WISDOM

Wealth is not created by spending what you earn, but by investing what you keep. It involves distinguishing between temporary desires and lasting assets, and exercising patience to allow your money to grow. This is achieved by making your future self's prosperity a greater priority than your present self's comfort.


Delay immediate gratification

Understanding that what feels urgent today may become optional tomorrow.
✔ When you feel a strong urge to buy something new, wait 30 days before purchasing
✔ Ask yourself: "Will this purchase still feel important to me in one year?"
✔ Practice distinguishing between true needs and temporary social pressure
✔ Write down your immediate wants and review them after one month—see which still matter
✔ Celebrate when you successfully wait out a temporary desire without acting on it


Invest before you spend

Making your financial future the first priority, not the last.
✔ Automatically transfer a percentage of every dollar you receive into investment accounts
✔ Treat your investment transfer as a non-negotiable bill that must be paid first
✔ Start with whatever amount you can, even if it's small—the habit matters most
✔ Increase your investment percentage with every raise or bonus you receive
✔ Track how your invested money grows over time to reinforce the habit


Distinguish assets from liabilities

Learning to identify what builds wealth versus what drains it.
✔ Before any major purchase, ask: "Will this put money in my pocket or take money out?"
✔ Recognize that many status symbols (luxury cars, expensive clothes) are liabilities, not assets
✔ Focus on acquiring income-generating assets first, before acquiring luxury items
✔ Calculate the true total cost of ownership for any major purchase, including maintenance and depreciation
✔ Prioritize investments that appreciate in value or generate passive income


Transform social pressure into financial discipline

Using others' expectations as motivation to build real wealth instead of visible consumption.
✔ When you feel pressure to "keep up," redirect that energy into your investment plan
✔ Understand that true confidence comes from financial security, not from visible spending
✔ Surround yourself with people who value financial wisdom over flashy displays
✔ Take pride in living below your means while building substantial assets
✔ Let your investment statements, not your possessions, become your source of pride


Let your money teach you patience

Discovering that delayed rewards often bring greater satisfaction than instant purchases.
✔ Start a small investment and watch it grow—let this process teach you patience
✔ Notice how the excitement of watching investments grow often surpasses the thrill of shopping
✔ Document how your feelings about a desired purchase change over time
✔ Celebrate financial milestones that come from patience and discipline
✔ Share your investment successes with family to inspire wiser financial thinking


Learn from financial mentors

Seeking wisdom from those who have built lasting wealth, not just visible wealth.
✔ Identify mentors who have achieved financial independence through smart decisions
✔ Ask questions about their journey—what they sacrificed early and what they gained later
✔ Study stories of people who built wealth gradually versus those who spent lavishly
✔ Observe how truly wealthy people often live modestly while building substantial assets
✔ Apply one piece of financial wisdom from a mentor to your own life each month


Build for legacy, not appearance

Creating wealth that lasts generations rather than spending for temporary approval.
✔ Define what true wealth means to you beyond material possessions
✔ Consider how your financial decisions today will affect your family's future
✔ Balance enjoying today with securing tomorrow—aim for 80% security, 20% enjoyment
✔ Teach these principles to the next generation through stories and practical lessons
✔ Measure your success by your net worth and financial peace, not by your visible consumption

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