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Colada
A drink of Knowledge Wisdom and Change
"Each man (is) the architect of his own fortune."
Appius Caecus
MONEY
THE SECRET PSYCHOLOGY OF MONEY
How would you feel if today you went to the mail box and found a letter from your bank. You opened it and it said; According to our figures and we know that we are RIGHT, based on the amount of MONEY you have in your accounts if you retired today, you could live very very very comfortably until about 3:00pm tomorrow.
Let me ask you this question. Do you think that your reaction to the letter would be the same or different if you were 10 years old or 50 or maybe 60? This is a trick question, how you would reaction to the letter does not matter. It's how you reacted to the FACTS in the letter, not how you reacted about the letter that will determine how you will live in retirement.
In a past MONEY, I said that if you made $10.000.00 a year for 40 years you would have made $400.000.00. How many hours do you think you would have worked (40 hrs for 50 weeks)? How about 80.000 hours. Most people work more then 40hrs and 50 weeks for 45 year and sometime more. The sad part is they did not get the letter until the 1st day they started that retirement.
The Facts from the government is that out of a 100 people, those that reach the age of 65, one is rich, four can keep their heads about water, the rest are dead or dead broke. That's five people out of 100 or 1 in 20, that does not have to live a life getting help from family members because their government check is not enough to pay all the bills and feed them. Even sadder is that woman get less then man and they live longer. Now, look around you at 20 of your friends and ask yourself which one do WANT TO BE when you reach 65?
Let me tell you this,there are something that only seem to work for some of the people, but not most of us. One is a diet and the other is a budget. They don't work because both ask us to give up things and not to enjoy life. (don't eat this don't eat that , you can not afford this or that).
THE SECRET PSYCHOLOGY OF MONEY, is that MONEY does not care who has it or how it used. It will buy butter or guns, it does not care the color of your skin or what part of the world you live in. It does not care if it sits in a box in the ground or the stock market, under your mattress or in the bank.
MONEY is not good or evil, it JUST IS.
YOU MUST DECIDE TO BE WEALTHY.
One of the first steps to you need to climb if you want to be WEALTHY, is to make a conscious decision as just how much MONEY you want to have when you retire. Keep in mind that what ever amount that you decision on, you will get that and no more, so THINK BIG.
Then you write this amount down were you can look at it three or more times a day. You must also write down on the same paper, how you plan on getting this MONEY, and what you plan on given up to get it. (nothing is free in life) How ever the only thing that you may have to give up is your believe that you don't deserve to be WEALTHY.
Like any journey that you take, you have to know three things, one WHERE ARE YOU NOW the next is WERE DO YOU WANT TO GO and the last is what are the ROAD SIGNS ALONG THE WAY THAT WILL SHOW YOU THAT YOU ARE GOING IN THE RIGHT DIRECTION. You will also need one more item on this journey and I will use the term LIFE PLAN for it..
The amount of MONEY that you want to have when you retire is the WHERE YOU WANT TO GO. Where you are now is called your NET WORTH, and the check points along the way are the road signs to make sure that you reach your destination, and they will be clear to you when you do the first two steps.
YOU ALSO NEED TO TAKE ACTION NOW, you can no long say ready aim, aim, aim, aim, aim, aim you need to FIRE
Your NET WORTH is nothing more then adding up all your bills and write down the total amount that you own. Then add up the all you bank accounts and cash and write this down. Then you subtract the MONEY you own from the cash, and you will know just were you are RIGHT NOW or your NEW WORTH.
Most people will STOP here, because it is too hard. YOU CAN NOT. Adding up all the money you own is not that hard just look at the bills they send you every month and list any other MONEY you own.
Then add up all the MONEY you have in the bank, the cookie jar, and under the mattress and using this TOTAL AMOUNT OF MONEY on paper PAY OFF AS MANY BILLS as you can. What you have left over, being more bills then MONEY, you will have a NEGATIVE NEW WORTH, and if you have MORE MONEY THEN BILLS A POSITIVE NEW WORTH.
Now that you know were you are, the next step is to know were you are going, or how much MONEY do you want when you retire. This is were you have put down in written the extract amount you want to have when you retire.
Then you break down that amount into how much you will need every year, then monthly and then, the BIG ONE. HOW MUCH DO YOU NEED RIGHT NOW TODAY, to make sure that you will meet you monthly goal. This daily action will put you on track for the monthly goals and if you are meeting that goal you will reach the yearly goal.
It is very very important that you understand that by meeting your daily goals every day you will reach your monthly and yearly goals. And by reaching your yearly goals, you will reach your GOAL FOR RETIREMENT. The daily action is the road signs along the way for you to check and adjust if you WANT to stay on track. "Life is like an ice cone, you have to lick it one day at a time." said Charlie Brown.
Then you will start working on your LIFE PLAN, this is the part were you are keeping tack of everything you spend MONEY on, how much you are SAVING.
Your GOAL here is to make sure that you do not spend more then you make and that you keep out BAD DEBT.
Robert Kiyosaki had to this to say about MONEY, "Most people struggle with MONEY because in school they only learn to work for MONEY. Rarely do they learn to have MONEY work for them."
Jack Boston
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