Managing your Personal Finances Wisely

Moneywise24 Personal Finance



Learning How To Prosper 2

Posted on February 03, 2010 by admin

wltAuthor: David Beairsto

Becoming Healthy, Wealthy and Wise

Change is essential for anyone wanting to make a difference in this world. Knowing how to prosper, like knowing any process, starts by embracing change as a way of lfie.

Moving from one fixed point to a desired conclusion requires action. Action by definition is the opposite of being fixed or permanent. While our current state and our desired conclusion may be inactive reference points, the process of moving from the beginning to the end is fraught with activity.

You Can’t Win Unless You Finish The Race

Failing never prevents anyone from obtaining their goal. The only reason we don’t win the prize is if we stop trying. Failure is the trophy of endurance to the one who prospers. Failure is also the prize for the one who quits.

Persistence takes failure into account. Like difficulties and obstacles they are expected in the pursuit of success. Persistence holds fast to the plan designed to carry us toward the goal. Persistence is also insistent, that no other goal be substituted for the original. Failure and quitting are not goals to the persistent person.

Not Who I Am But Who I Intend To Be

We learn how to prosper in business by first learning to prosper in personal development. If we aren’t willing to grow and change personally on a consistent basis, it isn’t likely we’ll discover these character traits elsewhere.

The prosperity mindset begins with thoughts intended to change the person. By conditioning our minds to think differently, we in turn act differently. Our behavioral patterns lead us toward a prosperous conclusion as a result of thinking differently.

An honest assessment of our current condition is as necessary as knowing who we intend to become. Without a fixed reference point, we can’t map out an exact route. When we encounter obstacles that change our direction, we need a reference point in order to focus on the goal again.

Don’t Be Afraid To Stop And Ask For Directions

When this practice is applied to our business we already understand the pattern. Regular assessment allows for adjustment in our plan.

We don’t like to get turned around or lost in pursuit of our goal. Whether in personal development or business, retracing our steps is a waste of time.

By first learning to be open and transparent about ourselves, we become willing to allow others to bring fresh insight to our plans. When it is positive in nature, external input can give insight that we might otherwise miss again and again.

As the process becomes more involved, we generate an increasing number of specific plans. Each one has a unique starting point and goal. They all lead us toward our main objective, like adding lanes to a highway increases the speed and flow of traffic.

Stronger Foundations Support Larger Structures

If for instance, I learn to wake up at 6am to focus on reading, but fail to improve my self discipline, I may not use that time consistently. They work together.

I used to coach young children in soccer. They loved to run, but learning ball control disciplines was far more difficult for them. They either ran past the ball, or kicked it too far out in front of them. Only a few were able to do both successfully. Everyone else chased them around the field.

As we learn how to prosper, we begin to detect weakness. With the proper mindset we view weakness as a learning opportunity. We prosper directly by learning to transform weakness into strength; inability into capability.

Like road signs telling us where we are, weakness identifies our current location and helps us decide which way to go. In the same way failure identifies a dead end process as a lesson of value.

On the race toward success we condition ourselves to welcome weakness, failure and difficulty as profitable resources. When we think of them as such, we are able to use them to build a solid foundation.

It Isn’t A Matter Of Luck Or Chance

We can only prosper in proportion to what we’re willing to give in exchange. If I’m willing to read self improvement books from different authors on a consistent basis, I can expect a greater level of personal growth; provided that the knowledge I gain is organized into a plan for self improvement.

If I desire to become a millionaire while working for a set salary I should consider the time it would take to accomplish that goal. My will may keep me from relinquishing the desire to pursue this goal, but time might run out before I get there.

By taking some of my income to invest in the stock market, I increase my potential to become a millionaire. If I choose to exchange my free time for the purpose of learning how to invest my money, that time investment improves my chances.

An even better plan is starting a business. The entrepreneur understands the importance of limitless potential. Beyond the ability to write your own paycheck, is the ability to write an even larger one every day. Prosperity ultimately becomes the process.

One of the greatest assets to learning how to prosper is that we can share both the plans we followed and our experience with others. Living in prosperity is the objective behind the learning process. People who live prosperous lives are an encouragement to anyone who wants to succeed.

Article Source: http://www.articlesbase.com/wealth-building-articles/learning-how-to-prosper-1789070.html

About the Author

David Beairsto, author and owner of http://NetworkFisher.com truly believes that if you give a man a fish you feed him for a day, but if you teach a man to fish you feed him for a lifetime. Knowing how to succeed in business online or offline is a matter of becoming a master marketer and learning how to prosper. Successful businesses are continually defined by their ability to effectively market their product or service. Visit our website at http://DavidBeairsto.com to follow us in our effort to transform ordinary people into successful entrepreneurs, one by one.

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Why Do We Take Financial Decisions, That Are Bad For Us? 0

Posted on December 16, 2009 by admin

moneyissuesWe continuously hear about how people make unwise financial decisions, and how we rely too much on our emotions. We tend to think “this will not happen to me, I am a smart and educated person”. A documentary I saw yesterday demonstrated the exact opposite. Below, I would like to take the opportunity to recap two scenarios of yesterday’s documentary, and the results.

5 Euros now, or 40 Euros in six weeks

Different random people on the streets were offered a 5 Euro bill on the spot, or they had the option to receive 40 Euros in six weeks. Nearly all people chose the 5 Euro bill option. However, taking the 5 Euro bill option is the most unwise decision; 5 Euros is much less than 40 Euros. Even if people would have been offered 5 Euros per week for the next six weeks, the total would be only 30 Euros.

We humans are greedy people, which is largely programmed in our genes. First, shopping or becoming money makes us feel good; yes, our bodies produce endorphine, having a very positive impact on our mood. However, from a survival perspective we also have to take the opportunity when it comes by immediately, as this opportunity might not be available tomorrow. Although we cognitively know, that taking the 5 Euro note now is not the best decision, emotionally it is still the best thing to do.

Absolute vs. comparative amounts

It is very difficult to look at money from an abstract point of view; how much is 10 Dollars worth? For someone earning 4 Dollars per hour it is worth much more than for someone earning ten times as much. And what is 10 Dollars worth in China, or India, or South Africa?

Random people on the street were asked to take a pick from two possible scenarios:

  • You are offered an annual salary of 100,000 Dollars per year whereas everyone else earns 50,000 per year.
  • You are offered an annual salary of 200,000 Dollars per year whereas everyone else earns 300,000 per year.

Although a 200,000 Dollar salary is clearly higher than a 100,000 Dollar salary, most people still chose the 100,000 Dollar salary. The main motivation of the people asked was that it makes them feel good to earn more than everyone else… people were simply comparing themselves to others, in stead of making an objective decision and go for the higher amount.

The human mind is truly astonishing, and it takes some will and effort to truly make objective decisions, which are best for you. Still, humans are emotional, and probably it will never be entirely possible to turn them off.

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Balanced Living Standards: Cheap, Cheaper, Cheapest? 0

Posted on December 07, 2009 by admin

I stumbled upon an article the other day, unfortunately I only quickly browsed the site and completely failed to write down the URL. Nevertheless, the article was an interesting one; it described how a woman from Latin America paid back her 25,000 USD loan within a couple of years, by taking on two jobs, letting her children live with her parents, and moving into a 100 USD per month apartment.

Although when I read the article, I felt great empathy and respect for the woman paying off a huge debt within such a short time, I felt somewhat confused when I started thinking it over. The article implied, that the woman had achieved something amazing, which she did in a sense. But:

  • I live in Western Europe, it is impossible for me to find a place which would cost me only 100 USD per month.
  • If I had children, would I really give them to live with my parents for as long as a couple of years?
  • Would my parents approve of me giving them my kids to take care of?
  • What is the use of paying off a debt, if it means living in absolute poverty for a few years?

Especially the last bullet point, whether I would sacrifice my life in order to pay off debt quickly, set me to think. Yes, living on the verge of poverty would let me pay off my debts much sooner. However, at the same time my life would come at a full stop; I would not be able to develop myself in any sense, since I would not have the financial means.

Usually, it is recommended (and many banks and land lords apply this rule also) to spend about one-third of one’s net income on rent or mortgage; in the more expensive metropoles, it could also be as much as half of one’s net income. This does not mean, that exepenses can not be reduced. Many people spend only 25% of 20% of their net salary on rent, meaning they are theoretically spending less than average on rent. The money that is saved could be spent on paying off the debt in addition to what is spent on paying off debt already. This way, debt can be repaid more quickly while a certain living standard is maintained.

I am big fan of finding the right balance between living standards, personal development, income and expenses. Sure, some people simply do not have this choice. But sometimes, people do have a choice and still they opt for the hard way. In many cases, this applies to income the same way; people choose a job or a profession which will reduce their social lives to virtually zero, yet offering them a great salary with a company car and bonuses. Five years later, some get a burn out… was it really worth it?

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Book Review: Outliers by Malcolm Gladwell 0

Posted on November 18, 2009 by admin

An outlier is someone who demonstrates extraordinary performance. He is someone who we call extremely talented. However, how are outliers born?

In his book Outliers, Malcolm Gladwell takes a closer look at what makes people so successful, and why. In an entertaining and well written way, Outliers explains the relationships between hard work, ambition, passion, and pure luck, using many real-life examples, such as that of Bill Gates. All examples and theories described in the book are the result of extensive research.

For those readers, who want to obtain a greater understanding about what characterizes success, I would greatly recommend Outliers, by Malcolm Gladwell.

ISBN: 978-0-316-05628-1

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Book Review: Think Like a Billionaire, by Donald Trump 3

Posted on November 18, 2009 by admin

“In a world of more than six billion people, there are only 587 billionaires” are the first words the book starts with. But what does it take to belong to that so much desired exclusive club?

In his book Think Like a Billionaire – Everything You Need to Know About Success, Real Estate, and Life, Donals Trump litterally takes the reader inside the mind of one of world’s most famous billionaires: himself. With his colloquial writing style, Donals quickly fascinates the reader and introduces him/her into the world of real estate, attorneys, marriage, saving, passion for business, the big deal, but above all a passion for life.

In Think Like a Billionaire you will not find detailed theories on portfolio management or finance. The book approaches what you need to know and how you need to be in a well balanced way. The book will most probably leave the reader with a high energy level and a different way of looking at things.

Highly recommendable.

ISBN 0-345-48140-2

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