Day 7 : A week of you & your money – summary

Let’s take a look again at the start of the course. It began with your outlook on money and what we call the money mindset – your attitude and feelings about money, which you base your financial decisions on. Your money mindset is formed by your experiences during childhood, which substantially influence the decisions you make with money later on.

 

A new money mindset

Depending on your relationship with money, you might have an abundance mindset, in which case you have faith that there is enough money and that it will find its way to you. Or perhaps a feeling of deficit prevails for you when it comes to money, as you’ve simply never had the impression that there is enough. If this is the way you think, it’s even more important that you acknowledge your way of thinking as a financial blockade and that you reframe it. To do this, put it in a new context and turn it into positive affirmations that will provide powerful support to you on your investment journey (you’ll learn more about this in the next course). The good news: You can influence your money mindset. And you should, because a positive money mindset is the foundation for financial wealth.

 

Make a budget

Get an overview of your current financial situation. Draw up a budget for this. And remember: Numbers are your friends! Really. Enter everything precisely and take a look at what you spend on what, what habits seem to stand out here, and where you could save something. Put the revenue side under a microscope, too. How could you increase your income? Do your earnings match up to your performance? If necessary, negotiate your earnings with management and your customers and clients.

 

Distribute your money across different accounts

Once you are clear on the numbers, divide your income up according to the six–account model and distribute it automatically at the beginning of the month. Open an investment account while you’re at it and set aside a specific percentage of funds to invest. The most important account is an emergency account. It’s your own emergency nest egg, which will hold you over a few months if things ever go south.

 

Your goal: understand why you do it

The rule for the new habits you’ll form around money is this: Make peace with saving! It’s okay NOT to spend money if you know exactly what you want to spend it on instead. That’s where the next rule comes in: Clarify your financial goals. When you have a clear picture of exactly what you want to achieve, saving gets a lot easier. So, what are your visions, plans, and desires?

 

And now…let yourself get rich!

Now you’re already ready to take the next step and start investing. Before you start, get a solid understanding of the basics, particularly of those regarding risk, diversification, and fees. Really comprehend why stock prices fall and, above all, know that they also climb back up with time. Double check that you understand the principle of compound interest and how it leads to exponential growth of your money. Accept it into your life with open arms. It will enrich you…in the truest sense of the phrase. Good luck, and have fun!