I don't care what anyone says money is important and it's for this reason that
just about every person on earth has financial goals some people want to
become insanely rich while others simply want to have enough money not to worry
about their bills unfortunately no matter what your financial aspirations
are there's a high probability you will never meet up with these goals if you
act as your own financial obstacle and as such in this video i want to share
with you the real reason you aren't financially successful and if you're new
to the channel then hit the subscribe button below for more life-changing
content as i just mentioned many people want to become wealthy or at least
improve their financial positions yet they continue to act as a barrier in
reaching their financial goals one obvious way they do this is through
overspending i know it sounds remedial to some but the concept of spending less
than you weren't is incredibly hard for many people and as such can lead to a
lifetime of consumer debt struggles and late nights staying up worrying about
bills now whether you're overspending because you didn't grow up with a proper
financial education or you overspend because your boss has you working on a
demanding project and you need some retail therapy fortunately this
particular issue can be easily remedied with a bit of budgeting and self-control
another way that we hold ourselves back financially comes down to
self-improvement let me ask you this when was the last time you read a book
took a course or actively seeked out financial advice from a mentor i hate to
say it but most people these days are so focused on staying up to date with their
current roster netflix shows that they wipe out any chances they will ever have
a succeeding financially now sure you can watch tv from time to time but if
you aren't upgrading your skills that will make you inherently more valuable
in the open market then how do you ever expect your boss or businesses in
general to pay you more money finally perhaps you're one of those people who
holds onto their money tighter than my girlfriend holds my hand at a haunted
house and saves every penny you make sure saving your money is better than
blowing it all and if you're saving then i command your efforts however saving is
only half the battle if you're seeking to grow your wealth over time what most
people fail to realize is that saving will allow you to see your bank balance
grow but unfortunately the price of that carton of eggs or container of milk is
rising faster which means that saving isn't enough you must invest instead now
for your sake and my sanity i hope that you're not falling victim to any of
these things however there is one more pitfall that so many people are falling
into these days that is certainly going to guarantee that they never become
financially successful what is that pitfall you may be asking succumbing to
parkinson's law if you're unfamiliar parkinson states that work expands so as
to fill the time available for its completion in a financial context we
often see that spending expands as income rises which is commonly referred
to as lifestyle creep or lifestyle inflation with a lot of definition and
parkinson's law probably seems more relevant today's discussion i want to
dive into why both are holding you back financially by doing so you can avoid
one of the biggest mistakes people are making with their finances today and
unlock the potential to make all of your wildest financial aspirations become a
reality to reiterate the first definition of parkinson's law states
that work expands as to fill the time available for its completion chances are
whether you realize it or not you've succumbed to this phenomenon before for
example do you remember when you were assigned a project in school and while
you knew it'd only take you three hours to finish the whole project you let it
drag on and only handed it in 20 minutes before it was due or perhaps at work
you're assigned a task due next week and you find yourself scrambling to get it
done right under the wire this is parkinson's law in effect now don't get
me wrong so coming to parkinson's law doesn't mean that you aren't getting
things done all's well that ends okay right the issue is that when parkinson's
law rears its ugly head we often start to accept certain timelines in our life
that end up holding ourselves back and this right here is the major mistake we
absolutely must avoid let me share with you three examples to illustrate what i
mean the first instance where parkinson's law comes into play pertains
to retirement if i were to ask you how you were raised to view retirement you
probably say something like you're supposed to work for 40 years save and
invest regularly and then live off your nest egg in your old age now is this the
path to retirement most people are gonna take yes is it the only path you can
take absolutely not more and more we're seeing people retiring in their 50s 40s
even 30s because they're winning the game of money earlier in life by
shifting their mindset around what it means to retire how does this relate to
parkinson's law you may be wondering well if you think you'll only retire at
65 then you're going to allow your retirement savings period to match that
expectation however if you modify your goal to retire at 40 then all of a
sudden your plan and work ethic will be dramatically different and this leads us
into my next example another financial marker that is often tied to our age is
our income potential so many people think that you need to wait until your
40s or 50s to start making big money which is ironic given that many of the
world's most well-known billionaires in society today he had billionaire status
in their late 20s early 30s however this again is parkinson's law in effect we
set this expectation in our minds that as a young adult we can't or shouldn't
be making big money but this isn't the case the only reason we allow the
timeline to be so long is because we've imposed this forced timeline on
ourselves a timeline that doesn't have to exist for instance when i was in
college i thought i'd have to wait well into my 30s to start making six figures
and for many years it was looking like i was going to be right then fortunately i
realized that i could manipulate this timeline by building up online
businesses and my youtube channel and these tools allowed me to break into six
figure club well before i had initially anticipated what changed i removed the
limitations that parkinson's law imposed on me speaking of businesses who says
you can't build a successful business in a short period of time i think most
people believe that in order to build a profitable company it takes decades upon
decades because we often hear about the startup journeys of companies like
amazon or apple however chances are you aren't about to go on a journey to
create a billion dollar company and that's okay there are numerous small
businesses or companies of one that can offer you an amazing lifestyle and
financial position without spending years to get things going for instance
in the digital world we live in today people are starting online stores
youtube channels blogs and the like and are making big bucks in just a few years
time unfortunately beyond skills and work ethic to make any of these
endeavors a success you also need to ditch the notion that it's going to take
a ridiculous amount of time to be successful sure you likely won't be an
overnight success but at the same time you shouldn't be placing limiting time
constraints on your ability to succeed because those results may happen sooner
than you think now let's say you ditch the slow lane timelines that you or
someone else has imposed on you and you start making significantly more income
all is good right not quite remember the definition i gave
for parkinson's law as it pertains to your money i said that as your income
rises your spending rises too and this phenomenon that we call lifestyle
inflation is seen all around us in fact one of my first interactions with
lifestyle inflation came a few years ago when me and my cohort of a few
colleagues got her first promotion at the time we all received a ten thousand
dollar raise and the ways that monies was used was greatly varying amongst us
while i stashed my cash in the bank i was seeing new suits new cars and new
phones all over the place now i'm not against trading yourself but in many
cases that ten thousand dollars was gone before it even hit their bank accounts
at this point you may be wondering how you can avoid lifestyle inflation's
sinister ways but not live life as a miser either and don't worry i've got
you covered i recommend you use the 15 rule the 50 rule recommends that you
spend 15 percent of any after tax raise or bonus and save and invest the rest
for instance if you were in my position and got a ten thousand dollar raise
which is likely seventy five hundred dollars after tax you could spend up to
eleven hundred and twenty five dollars this way you can have your cake and eat
it too and to me that sounds like a yummy proposition now if you've been
paying attention then the grander lesson that you should be taking away here is
the fact that just because most people are doing something doesn't mean that
you have to be doing it too it's like when your mom used to say if billy
jumped off a bridge would you jump too well whether you want to admit it or not
your mom was right doing what others do whether that's retiring at 65 waiting
until 40 to make bank or thinking that it takes decades to build a business is
not the optimal path to achieving financial success but what if you're
already set up on this trajectory what do you do good question well first let's
tackle retirement right now you may be depending on your work's pension program
to retire but what if you sped up that timeline by contributing more of your
disposable income towards this end goal doing so could easily allow you to hand
in your two weeks notice years sooner than initially planned however to
contribute more you need to earn more and how do you do that you improve your
current skill set gain new skills or set up a system that adds more value to
others remember you don't get paid based on how long you work you get paid based
on how much value you provide finally remember the patience is a key
ingredient to success but that doesn't mean that you should expect slow results
working smart while working hard can exponentially speed up your path to
wealth so don't set timelines that can be sped up if you have the right
strategy in place therefore given that you are now well versed in parkinson's
law and its impacts on your financial success you have two choices choice one
is to allow it to continue to slow you down or choice 2 is to acknowledge its
presence and maneuver around it to achieve quicker financial success i
choose path number 2 but hey this is your story to write not mine hey it
looks like youtube thinks this next video is the one that will change your
financial life forever give it a watch and let's see if they're right