Nobody is talking about it, but these are the awful truths about money you should know.
How do we feel about the reality that our efforts to earn more money results in less
of it in our hands? How do we feel about the fact that most of us experience an increase
in expenses every year although we are trying harder and harder to save money ?
If you're like us, it feels like you're trapped in a cycle and no matter what you do, you
can't get out of it. But in this video you will learn the truths
about money to escape this cycle. But first of all : Hello and welcome back
to our channel ! And if you are new here : We are the finance nerds and on this channel
we are helping hardworking people like you to get more out of your hard earned money
by showing you how to use your money in the most effective way. And if you like the video
and get value out of it, hit the like button. It took us some time to find out these truths
about money, even though we are constantly listening to podcasts and reading books on
the subject. However, these truths are exactly those that are not mentioned in every book
or podcast and are usually forgotten. Not even in our studies in business law it is
talked about and therefore it is even more important to share this with you today.
Truth 1 : You will probably not beat the market
No matter how well you invest, as long as you have a healthy risk in your investments
you will not be able to beat the market, but you will not lose money and build wealth in
the long run. To beat the market, risk is the key. However,
most of us do not have the opportunity to take such big risks and rather want to build
wealth in small steps. This takes time and low risk investments that mean you probably
won't beat the market.
Truths 2 : the unexpected things, cost you the most money
Unexpected expenses can hit you at any time and no matter how well you are prepared and
try to avoid them, they will still come and cost you the most money like medical bills
or car repairs. The best thing you can do is work them into
your budget. For example, you can set aside a percentage of your income each month for
unexpected expenses.
Truths 3 : We all deserve to get money but most of us aren’t ready
We believe that everyone deserves to earn and own a lot of money and that everyone is
capable of acquiring the necessary knowledge and skills to earn a lot of money. But most
of them are not ready for it. What do we mean by that ?
Most people are not ready mentally to have a lot of money, because of their subconscious
programming. They have negative beliefs that prevent and block them from having a lot of
money and have also developed negative habits that work against them.
How can you expect to have a lot of money if you think negatively about it and your
actions work against it ? The others are not willing, based on their
inner attitude, to provide the necessary stamina that it takes to acquire the knowledge and
skills to earn a lot of money and put them into practice. Each of us is able to acquire
this knowledge in 1-3 years, but most will never find out because they have no stamina.
Truths 4 : Our debt will eventually equal our wealth
It's fine to save or invest a lot of money, but you won't become truly wealthy until you've
paid off all your bad debts. You have to distinguish between good and bad
debts. Good debts produce asset growth, such as when you invest in real estate and take
out a loan for it. Bad debts reduce your wealth, so your wealth will probably be equal to your
debts and it doesn't matter if you have saved or invested a lot of money, these debts will
eat up your wealth. So take care of your debts and pay off the
highest interest rate debt first.
Truths 5 : Wealth comes through investing not saving
Saving money is important and right, however, will not build you a fortune, you can create
only through wise investing. As long as you park your money in a bank account,
inflation, which is currently estimated at 2.3% in 2021, will slowly but surely reduce
your money. This means that if you save money you will actually lose money or your money
will simply become less valuable. Therefore, look for options where you can
invest your money well and also quickly make liquid again.
Truth 6 : time is more valuable than money
Money is nice and with money you can buy many things and fulfill your dreams, but how good
is all that money if you don't have time to enjoy it ?
It is a personal decision of what is more important to you and it also depends on what
phase of life you are in, but you should keep this truth in mind more often and take some
time out. Always remember: money is infinite and your time is limited.
Truth 7 : Time is the factor that makes your money grow
Also tying into the last point, time is worth more than money itself at least when it comes
to growing the money and building wealth. This is nicely illustrated by Compound Interest.
Albert Einstein once said: "Compound is the eighth wonder of the world. He who understands
it earns it... he who doesn't pays it". This is also the reason why many say that
you should start investing early, because over time your wealth will grow more and more
rapidly.
Now that you know these truths about money, we're pretty sure many of them sound familiar
to you, you're well prepared to manage your money better and understand how money works.
What many people find very difficult is patience in connection with the time it takes to create
an increase in wealth. Even Warren Buffet needed this time until he built up his fortune.
At the age of 21 Warren Bufftet had only $20,000 and at the age of 47 he had 67 million US
dollars. You see, wealth takes time.
If you liked the video and want to learn more about your finances check out the video on
the right side or check out our description. You will find our recommendations to “watch
next” and other resources to improve your finances.
And if you got some great value from this video make sure to hit the like button. We
hope to see you in the next video!