Did you know that making money is determined by how you think?
While some people witness societal drams, and never-ending problems.
Successful people see problems as opportunities. In "Money Master The Game," a popular finance book
by Tony Robbins, features interviews with investing legends such as Warren Buffett,
John Bogle, Paul Tudor Jones, Ray Dalio, and Carl Icahn. The author, Tony Robbins spent nearly
eight years researching the second category -that successful people see problems as opportunities.
If you get the chance to read the awesome book, you'll have one major takeaway: that money is a
game, a game that you play in your head every day. As a result, knowing what to invest in is far less
important than knowing your financial psychology. This is a fascinating topic, and that’s why in
today’s practical wisdom video, we’ll be looking at psychological tricks that
everyday citizens can use to make more money. So stay tuned and enjoy guys.
1.Boring hobbies make money
Hobbies are a great way to unwind and enjoy ourselves, while doing something we love. And
thanks to the creator economy, it’s give us the opportunity to make content about
a hobby and earn money from it. • Quora pays content creators.
• Substack pays content creators. • Bitclout pays content creators.
• YouTube has paid content creators for years. • Facebook now pays content creators.
• And Tik-Tok and Twitter now pays content creators, just to mention a few.
Newsbreak used to pay content creators before they pushed the self-destruct button. However, LinkedIn
is thinking about paying content creators. So as you can see there are a lot of opportunities here.
If you own a phone then you can join the creator economy.
It may not replace the salary from a job, but it can certainly make you side hustle money.
Just like Robert Kiyosaki wrote in his book Rich Dad Poor Dad,
if you psychologically program your mind to see opportunities, you will see money everywhere.
2.Think long term, not short term Many content creators desire to increase
their earnings. The issue is that they are unaware of the importance of long-term thinking.
I've discovered that publishing content for five years in a row
can completely transform your financial situation.
The issue is that most content creators lose patience after 3–6 months. As a result,
they give up and forfeit all of their gains. They might keep going if they knew that in 5 years,
they could achieve their content creator goals. The truth is that no measure of financial success
can be guaranteed. However, you can calculate the odds by looking at other people who share
the same goal. When I carried out the experiment, it became clear that all of my
favourite content creators had a 5-year plan. Investing in blockchain projects is the same way.
Many people may have questions about the price fluctuations that occur on a daily basis.
But today's price is irrelevant. The price in 5–10 years is what matters.
The last 13 years have demonstrated what blockchain technology is capable of.
Gambling, casinos, and the lotteries are products resulting from people who want to make money
quickly. However, when it comes to building wealth, there's no such thing as a quick wins.
3.Spend only cash. The next psychological
trick that some wealthy people, and not all - incorporate in their lives, is to only spend cash.
I'm sure you've seen someone pay for an expensive item or a fancy dinner with a wad of cash before,
and while your first impression may have been that this person was just showing off, there could have
been a calculated reason for this behaviour. Spending money, whether on groceries
or a new phone, makes us aware of the financial consequences of our actions.
This is because, when we pay for something with cash, we physically hand over money and
immediately see the depletion in our wallet, whereas when you use a credit or debit card,
the potential to spend is nearly limitless. So, if you want to use this psychological trick to
reduce your spending, cut up your credit cards and start carrying around more cash!
4.Picture Your Wealthy Future Self What do great athletes, famous actors,
and successful business owners have in common? (Aside from their wealth of course),
the one thing that they all have in common is their use of visualization.
Almost any successful person will tell you that you must visualize yourself achieving your goals
before you can achieve them in real life; however, some people are unable to see beyond their current
situation. Spending $5 on a Starbucks coffee, for example, does not appear to be a big deal,
and millions of people give away their spare change every day to fuel their caffeine addiction.
However, for those aspiring to wealth, that $5 can have far-reaching significance.
When faced with the decision of spending $5 on a premium coffee,
a wealthy person will most likely consider the long-term cost of the purchase.
You can see how a $5 investment today will grow to $100 by the time you retire.
You might reconsider that purchase if you considered it in this light, right?
What the wealthy do that the poor do not is constantly consider the future
cost of their spending decisions and whether or not they will align with the
realization of their future wealthy lifestyle. And if you believe this visualization technique
is novel, think again! Think and Grow Rich by Napoleon Hill, first published in 1937,
lays out a step-by-step approach to combining visualisation and action, and millions of people
have used it successfully. According to Hill's book, the first step is to decide how much money
you want and when you expect to get it. Jim Carrey famously tried this technique in 1990 by writing
himself a check for $10 million for "acting services rendered" and post-dating it for 1995.
He gave himself five years to become one of Hollywood's most successful working actors,
and he was able to cash the check he had written himself a half-decade earlier.
Hill recommends determining exactly what you intend to give in exchange for the money you want,
in addition to visualizing how much money you want to make. Hill advised that after making these
declarations, you close your eyes and visualize yourself living this luxurious lifestyle every day
until it becomes a reality. This technique is said to program our subconscious mind
to find solutions to our financial problems and to help us see resources,
people, and events that will help us reach our goal more clearly.
5.Volatility equals growth Bitcoin sceptics amuse me. They
point to price swings and say, "That's why it's bad." It's an oxymoron to have both stable prices
and rapid growth. Every day of the week, I'll take a 200 percent year-on-year
increase in exchange for price swings. But millionaires know, to earn or make more money,
you must take some risks. A life devoid of risk equals a life devoid of development.
The psychological trick is to allocate a small portion of your investments to price volatility.
The profits you make from high-growth investments such as Bitcoin can help offset the lower returns
on your other investments. A 1% investment in Bitcoin can increase the value of your
entire portfolio by 20%. And thankfully, most people can deal with a 1% loss.
6.A multiple customers mindset Retrain your mind to think of a job as
a single customer. Two customers are created by a job and one freelancing client. When you have
multiple customers depositing funds into your bank account each month, you are less likely to
have a gust of wind blow your dreams off a cliff. A few years ago, a good friend of mine told me
the story of how he spent the majority of his career with just one client.
It's isolating he said. Getting paid by a single customer was a daily nightmare for a guy who used
to suffer from severe mental illness. A 4 p.m. Friday meeting feels like a
possible layoff. A stray order from a boss that devolves into chaos is
equivalent to being unable to pay your rent. When we consider starting a business,
we often become overwhelmed by the thought of having to deal with hundreds of customers.
What if a halfway point exists? There certainly is one. Shift your focus from working for one
customer to working for two. It is simple to add more customers once you have two.
7.Set unreasonably high expectations
While the middle class sets low financial expectations in order to avoid disappointment,
the wealthy set exceptionally high expectations — after all go big or
go home, they are up for any challenge they say. No one would ever strike it rich and live their
dreams if they did not have lofty goals. Although ancient wisdom holds that you get what you expect,
many people choose to limit their lives to middle-class mediocrity in order to avoid failure.
However, champions don't wait for things to happen; they create them.
8.Block out fear The great ones operate at a level of consciousness
in which fear is not present. Everything appears to be possible at this level of thought. Every
seemingly impossible dream appears to be surprisingly achievable to the general public.
To operate at this level, you must be willing to step outside of your comfort zone,
which is exactly what the wealthy do. World-class thinkers realize early on that,
becoming a millionaire is difficult, and that the desire for comfort can be disastrous. They learn
to be at ease in the face of constant uncertainty, which when mastered, can be an invaluable asset.
9.Other People’s Money Even when they don't have enough money,
they tell themselves that there isn't a shortage. Rich people aren't afraid to borrow money from
other people's pockets to fund their future. If they have a great idea but are unable
to fund it, they will use other people's money to make it a reality.
Rich people understand that not being able to afford something on their own is not important.
'Is this worth buying, investing in, or pursuing?' is the real question. If this is the case,
the wealthy are aware that money is always available because wealthy people are constantly
on the lookout for great investments and superior performers to make those investments profitable.
10.When making major purchases, take your time. While sleep can help you relax,
improve your memory, and boost your mood, most people are unaware that it can also
help you make wise financial decisions. In fact, when it comes to saving money,
sleep can be a very useful tool. First of all, not getting enough sleep impairs
your decision-making abilities and makes you more likely to engage in riskier financial behaviours.
As a result, a vehicle you would not normally consider buying could end up in your driveway.
Second, sleep allows you to consider major purchases.
Taking the time to sleep on large purchases allows
your subconscious mind to process and analyze the information while you sleep.
11.Don't put your faith in yourself.
The wealthy understand that no one is perfect, whereas the poor do not.
To put it another way, the wealthy are more self-aware than their less fortunate peers,
which is why they employ strategies to reduce their proclivity for self-sabotage.
Automatic deductions are one method they use. Income generation is often not a problem for
the wealthy; however, what prevents people from converting this significant income into
significant net worth is their ability to save. Even the most responsible people find it difficult
to refrain from spending money when given the opportunity, which is why they prefer to automate
the saving process. If you're not familiar with automatic deductions, they work like this:
whenever you're paid, a portion of your pay is withheld from being
deposited into your primary bank account. People will typically open a savings account
into which the funds will be transferred. Many wealthy people take this practice a
step further by limiting their access to this savings account, ensuring that the
money allocated to this reserve cannot be spent under any circumstances, and thus ensuring that
their pool of savings grows over time. And lastly as Ramit sethi puts it,”In
personal finance, we overvalue math and undervalue psychology”.
It is just as important to learn how to make money as it is to learn how to think about money.
Don't underestimate the power of faulty beliefs or closed-mindedness in destroying your finances.
People who make more money adopt the financial psychology of the best investors,
which includes patience, deep thought, a willingness to take calculated risks,
an open mind, and diversifying their investments. So thank you so much for watching, leave a comment
and like below. With that said, have a great day and see you in the next one.