6 Crazy Simple Things About Money You Must Know To Gain Financial Freedom
To live your dream life
I grew up in a traditional Indian middle-class family, where my father was the breadwinner and managed all the finances at home.
My mother rarely contributed in terms of money, but she was wiser than my father when it came to investing money and planning for the future.
I didn’t realize this until recently, as I always preferred my father’s point of view, thinking he knew best since he was the one earning.
When I started earning myself a decade back, I naturally turned to my father for financial advice and followed his suggestions on how to invest and save my money.
For years, I believed that I would need a finance degree to understand these matters, so I didn’t attempt to learn on my own.
However, six years ago, when I moved to another country and needed to adapt to new financial norms, I was forced to educate myself on how money works.
It turns out that my father’s way of managing money was outdated.
Personal finance can be a tad complex, and planning for a future that is 30–40 years away can be challenging.
But the truth is that everything can change, and smart people often make it seem extremely complex to profit from “unlocking the secrets of money.”
Money drives nearly everything we do, and the world revolves around it.
Everyone is looking to make a quick buck, and money can reveal people’s characters.
Without enough money, we’re destined to waste our precious time chasing it, doing things we hate.
So, it’s natural to understand some unconventional money ideas that can lead to wealth. Here are my favorites:
#1 Your life partner significantly determines your financial success
Who knew money was a life hack?
Not me.
But who you marry matters.
The person you marry matters more than you might realize.
The truth is both partners know how to manage money and the basics of investing.
So discuss financial situations and their money habits to make sure its in line with you as well for a well lived life.
Discussions about financial situations and money habits are necessary to ensure a well-lived life.
Watch the Netflix Series by Ramit Sethi “How to Get Rich.”
#2 Thinking about money doesn’t make you evil
In our culture, we often demonize money, associating it with greed.
We all brought up thinking that money is the prime source of all evil.
It’s because we demonize money so well in a culture that shows greed.
However, money is essential for living a sustainable life.
Using money for good and spending it on areas that are important to you is the key.
Money brings security, risk taking ability, and gives you scope to try new things, give time to your habits, run side-projects and what not.
You need to be evil about money and spend extra just because it’s in trend.
You can simplify life and spend money to prioritize areas that are important to you.
#3 Tracking expenses is not just for poor people
The best money lesson I learned is the tracking of your expenses.
Tracking major expenses can leave room for you to enjoy life and prioritize areas that matter to you.
It can help you build a healthy habit of managing your money without becoming uptight.
When you have 10 credit cards at your disposal, automatic payments are set up.
It’s hard to keep track of how much you are spending every month or every year.
Most people believe that tracking your expenses are depressing and smart people let the apps track expenses.
Of Course you don’t need to track every single penny or to the last decimal point.
It’s not healthy.
But tracking your major expenses can leave room for you to give a breather.
If can give ability to you to:
- travel more often
- trying new restaurants
- taking some fun classes that you always wanted
- buying something special on your birthdays
It all feels great and you don’t put price tags on it.
Every weekend I usually get a take out to give myself time off from cooking and spend time writing, or just reading a book.
All these give me joy and some free up time.
It definitely makes my life enjoyable.
#4 Saving vs. investment
Simply saving money may not let your wealth grow.
We all learned about saving, whatever the money you earn, save 10% of it.
The interest rates most banks give are 0.1–0.2%. That’s nothing.
With high inflation rates it’s worthless to keep money in the bank.
Instead, become an investor by buying assets that appreciate in value, such as blue-chip stocks, index funds, or real estate.
You don’t need to be an expert but buying some assets that appreciates in value can certainly help.
I love the three fund portfolio approach. Click here to know more.
#5 In the modern world, one income is dangerous
Relying solely on one job for income is no longer a safe option, given the volatile job market.
Generating multiple income streams, whether through part-time hustles, investing, or creating digital products, is crucial for financial security.
Most of us work a job and earn a salary.
My father did this for his whole life. He stayed in one job for 40 years.
Of Course I think that works well for him because it gave him the security, consistent income for decades.
This is seen as normal.
People call this way of life “safe.”
But modern ways of working have changed dramatically in the last few years.
After a pandemic many jobs become redundant.
With mass lay- offs in the last 2 years made every job role absolute.
With big bank companies going bankrupt every other day like (Silicon Valley bank, Signature bank, Silvergate bank, First Republic bank) making the market very volatile.
In today’s time one income isn’t safe at all, there is no job security or money security.
Getting another job is harder than anything else no matter how good your resume is.
Generating multiple income streams is the only way to live.
Here are a few examples:
- Starting with a part time hustle
- Investing in Dividend stocks
- Creating digital products
- Collaborating with other part-time creators
#6 Investing in yourself is the key
It’s also one of the best assets you can build.
Allocate time and resources to educate yourself and keep learning from experts.
Though money doesn’t define you; it’s about gaining financial security and living a life that brings you free time and happiness.
My 5% of income goes in buying books every month and that’s my way of keeping my learning fun and cool new things.
In conclusion,
The key to achieving financial freedom lies in understanding yourself and what money means to you.
Learn the fundamentals of money and investment to gain financial security for yourself and your family.
Don’t let money become a prison; instead, use it wisely to live life in the best way possible.
It’s easy to think about people who are rich or born rich, they don’t need to work harder.
But in reality money doesn’t define you as much as you let it be.
Stopped getting tricked by fake-rich people on social media.
Wealth is a measure of how much free time and happiness you have.
You don’t need to take the fun out of life to become rich.
Learn some basic fundamentals about money and investment to start.
All the best!
Be Bold
Be Courageous
Be Your Best
This article is for informational purposes only and all views are my personal. Consult a financial expert before making any major money related decisions.
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