These rules of how to deal with money are not just simple tips to improve the quality of your life, these rules have to be remembered by heart, mentally digested, tested through your own experience and used in practice – that is if you want to have money in your life. Money is not the root of all evil as many people would claim. Money is just a symbol that represents how much of your time, emotions & qualified potential you were able to effectively invest in the surrounding world. Money is energy and lack of it shows that on a certain level of your life you lack the quality that can help you keep that energy in balance.
We all make mistakes when it comes to money and finances, among many people who are involved in business, there are just a few who are actually wealthy and enjoy what they are doing. There are many courses that will teach you how to be good in earning money, but not many of them will teach you how to deal with money and how not to lose money when you already have it. There are many business people who make their fortune (very often before they turn 50) and then suddenly begin losing it. Why is that?
Here are 11 rules that will definitely help you better understand how to deal with money in order to know how to stay on top of the financial wave. If you are struggling to get on top of the wave, consider looking deeper in the motivation behind your decisions as to where you are investing your potential, but that is a topic for another Life Script Doctor article.
Following this rule could have saved at least a quarter of all financial failures. We are not talking about spending your money on the things that you need to survive: we all need a place to sleep, clothes to wear and things to eat. We are talking about purchasing something of substantial value and investing your cash to make profit. Many people who invest in business have no clue about this business – they often invest in the illusion of a business that someone else created and they don’t have their own experience to break that illusion. Just watch “The Wolf of Wall Street” and see what happens when people are persuaded to invest in something that they have no clue about (penny stocks). When we have money that we can invest we often invest in projects we know nothing about motivated by our desire for high profits. In almost all the cases our Nature works in an evolutionary way not revolutionary way. It is statistically proven that people who win lottery are in a much worse financial state after five years than they had been before they won the lottery. Your money is always in danger. As soon as you have essential amount of money, all of a sudden many people appear around you and try to strip you down from that money. Remember: it is always harder to save money than to earn money. Stop investing with your Ignorance - invest your cash with Knowledge.
This rule is very simple. When someone is pushing too hard for you to give them your money, just tell them – I need some time to think about it. There are really not that many life-and-death “buy this now or you will lose the chance” situations. If you have done your research and can confidently confirm that you do need this product or service and it will be beneficial to you, then buy it, but don’t buy anything just because you want to stop the pressure. If someone is pressuring you to do something, especially if it concerns money – it’s a trap. Learn how to say no, it’s a good skill and not only when money issues are concerned. Remember that your free will is sacred, until it interferes with a free will of another person. So, stay put, like you are in a castle with great treasure and don’t give it away so easily when under pressure. When it comes to money, a lot more people are good in the art of offense than in that of defense. Just make it your habit to “sleep on it” – there are always more opportunities to spend money than to earn it. Don’t fall into simply following what others are doing or what others are making you do. Be true to yourself, take responsibility for what you have and have courage to protect your own energy (which is money) when you are under attack. When someone tells you “It is now or never” it is a smart thing to say never – let it be your decision to spend money, not someone else forcing you to make that decision now. Never pay, give back, loan or invest money under pressure.
There is always some risk when it comes to money. Everyone has their own agenda and striving to achieve their own goals. Remember about supply and demand. If you have something valuable, you should be able to sell it at least for a fair price. Lowering your value is never good, putting your value higher is a game of speculation in the limits of supply and demand – and let the best one win. In the end, if someone pays more than just a simple fair price, but takes part in a very interesting game of speculation, then he or she gets positive emotions from the process (if the sales process is carried out correctly) and that makes it a win/win situation. However, don’t limit yourself to always go for win/win, sometimes taking responsibility for your actions (becoming not just a player but also a teacher) and playing the speculation game better than your opponent, can be a valuable lesson in business and how to deal with the energy of money for your "student". Don’t speculate on just ideas and plans that have no ground behind them. If you speculate on something, it has to be more of an asset than an idea. If you want to speculate on an idea or a plan, first, make it into an asset and then speculate away. In today’s world of informational paradigm many ideas do have value and asset like properties, but they only truly become an asset when they are put on paper (as a business plan after thorough research), carried out in action with results and are tested in practice against the real world. If you decide to play the fun game of speculation always play it with something that is tangible.
Until you become wealthy or feel fine with losing some of your money, don’t buy anything guided by just one reason that you like it. Many people do this mistake by purchasing things that only their taste appreciates and after they buy it they can’t do anything with it – they are the only ones who can appreciate the purchase. Many people choose to buy a house or an apartment and renovate it in the way that they want it. And after many years if they decide to sell it (and travel the world for example) they find it very hard to do so, or they might be forced to lose a lot of money during the sale. When you are buying anything you should keep these four things in your mind: 1) you might change your mind about the purchase with time (perhaps your wife will want something new); 2) the price of sale is defined by demand, not by the value; 3) you can’t spend money to just satisfy your whims, unless of course you have enough money to afford throwing it into the air; 4) the more unique the product or service is, the harder it is to find a client that would want to buy it. The great value of money is that everyone needs it in order to have a fulfilling life in society, so when you spend your money on something, liquidity of the things you buy is very important. In our hectic time of change it is almost suicidal to freeze your assets in things that are hard to be sold back for money. Of course we are not living in the ideal world, but keeping your assets liquid is vital.
Life is short, future is unpredictable, never lose an opportunity that you are given today. We often get too much involved in the process in making things perfect while forgetting about the profit. We get too emotionally attached to the things we do and we disregard the fact that our actions should bring benefit in the form of money. The fact still remains that human life does not go on forever and during human life span we only have about 20-30 years (the time when we are in our prime state: physically, mentally and hopefully creatively) to gather enough wealth to ensure pleasant life when we don’t have as much energy to invest. We do need to choose the most effective ways to earn money while receiving joy from the process and keeping the passion to develop creatively in whatever we do. Many people get very suspicious when someone offers a rather high price for their goods or services. They start to think, “I might need it myself”, since someone else values it so much. However you should take into account the value of time. To make money you do need to learn how to make effective decisions, act quickly and don’t miss the opportunity. You should not lose an opportunity to make profit. There is a story about a dull fisherman who caught a fish one meter long and let it go back to the river with words: “It will be better for me if I catch you next year”. Every little thing that can result in profit makes you wealthier – be keen to get the profit when opportunity arises.
When there are more buyers than sellers you most likely will be paying more than you had to, when there are more sellers than buyers you will earn pennies or even lose money if you sell. Almost everyone buys and sells just as the crowd does. When you follow the crowd you can’t expect to make more money than the guy next to you in the crowd. Following the crowd is often huge reason behind many financial failures. We all do have the herd instinct and we try to do things in the easiest and the most convenient way possible. Most of us are afraid to take responsibility for our true potential, especially if we believe that it will make us look strange or arrogant in the eyes of others. We allow others (relatives, neighbors, media) to control us in our decisions of how to spend money. When it comes to money crowd always loses. If you want to win you should follow the prices not the crowd (price fluctuates in cycles, few people know this and keep it to themselves). In politics if you unite with majority you will win in most cases, in dealing with money it is the other way around. Buy when selling is in trend, and sell when buying is in trend. Buy your sunglasses in winter and winter gear (snowboard or skies) in summer. Prices fluctuate but people in the crowd don’t care about that and often buy when it is expensive and sell when it is cheap – they live just for today, without analyzing the past to have an idea of what to expect in the future. The one who wants to make money should be a pessimist during economic boom and an optimist during a financial crisis. Always buy from Pessimists and Always sell to Optimists.
Movement of financial assets have much bigger value than their size. What is the turnover rate of your cash assets? A year? A month? A week? One of the main reason people (as well as businesses) fail to earn money is the fact that a lot of their assets is stale and not moving. The same goes with your talents and potential – if you have wanted to do something creative (painting, pottery, writing a poem, etc) for a long time but have never done it – you basically have a big chunk of energy that is stuck and wants to be released. Doing something creative will give you a chance to manifest your emotional energy and it will be up to you where you direct it. Creative work does not have to necessarily be related to whatever is bringing you income, creative work gives you an energy boost and if that energy (as well as emotions) is efficiently invested – it will bring profitable results. We all have too many creative desires that are just lying in the back of the shelves. Do you want to know why people who are very good in business are called sharks? Shark’s gills need constant flow of water, that is why sharks can never stop and they always need to move in water. Money needs to be in the constant flow and working for you. Whatever is not being used in Nature begins to decay and dies. Value of your potential is in how effectively you can produce something or provide a service, it is not in the price tag that you put on your own value and potential. There are many people who have an ability to earn money, but they never start doing it. It is better to have an engine with a size of a small kitten that works, than an elephant size engine that doesn't work. Keep your money and energy in the flow.
You should gather your courage and ask for money if you need it to produce something. Many people have great fears when it comes to debt or asking for a loan. They rely only on the cash they have when doing business. They are entering the ocean of business on a very small boat and trying to keep very close to a shore. With time they will realize that there are a lot more rocks by the shore and there is a much bigger chance to hit the bottom than in the deep sea. If you really want to earn money, you just can’t avoid risk. Without risk you can probably save the assets accumulated by your ancestors, but you will never be able to build up wealth yourself. If you want money in your life, you should have courage and when taking a risk you should feel good about it. If you can’t sleep because you owe money to someone, than you shouldn't go into business or even try to be wealthy. Almost any wealthy person will tell you that they became wealthy due to the money they initially borrowed from someone else in order to implement a great feasible idea. Money itself is worthless – you get profit from using equipment, being a good salesman, advertising and personal leadership. Money + Brain is the combination that truly creates profit. So if you have a brain with an idea to produce something, your next step should be getting the money. If you can get the money without taking a loan and going into debt – it is the best option. If you don’t have that option, then you should borrow, but borrow only to produce. You should have some of your own money to invest of course – if you need to borrow 100% it just means that you are not ready to deal with money yet.
Many people (as well as businesses) find themselves in financial crisis because they broke this rule and didn't know the difference between money for development and money for showing off. Development means true growth of your capacity to do something while showing off is just embellishing your ability to really do something. Money should be spent to find new opportunities for growth especially when you have capacity to handle the demand. Showing off is just attracting attention without the ability to really do anything with it. Everything evolves in life, we can’t be a toddler forever, when we grow we need a bigger place to realize our potential. Showing off is just creating an illusion that we have reached the bigger place to realize our potential but in reality we are still a child. There are some people who use their first real profit to buy nice cars, other than reinvesting most of it in what they are doing and in just a short period of time they might find that they don’t have money to fill the gas tank or take proper care of their expensive car (some like to show off so much that they will keep their nice car and almost starve to death so they could keep it). Everyone who got wealthy was putting top priority into realizing their potential in business not in having a nice luxurious life (wealthy life comes as a bonus when you are creative and efficient in investing your energy). Most of the “wealthy” celebrities that you see on TV today are fake, they are just pawns in someone’s money making machine. It might seem that they are wealthy now, but will they be wealthy in the future and what price will they have to pay in order to keep on bragging about their “wealth”? It is much easier to get to the top than to stay on it. If you are borrowing money to gain profit it is fine, if you are borrowing money to indulge your pride, you are in trouble.
Following this rule might sound like it will make you a heartless person, but here is what really happens when you loan money to your family or friends. The fact is that as soon as you start having some money you run into problems, you now begin to attract all kinds of parasites. There is an everlasting war in our world between creators and beggars. Creators should protect themselves from beggars, that is the main idea behind this rule. When you have money in your bank account, it doesn't mean that you should put your heart into safety deposit box too, you just should learn how to say “No”. Leave the business of loaning money to those who know more about it then you do – to the bankers. Remember that it is always better to invest than to loan. If your friend is asking for a loan for his or her business it is always better to buy the shares in the company than to simply loan the money. Stop breaking the laws of physics – energy does not disappear anywhere, it is transformed from one quality to another. Exchange your money for an opportunity to produce more, don’t just loan it to someone. When you simply loan to your friends or family you mix your emotions with business and that is never good. Remember that if you want to lose a friend – loan him some money. If you can’t avoid loaning money to someone – you should loan not more than 20% of your freely available cash assets. And when you have given a loan you can surely put it in your books as money that you have lost. That way if you never get your money back you were ready for it and if you actually do get you money back it will be a positive surprise. When you loan money to someone you are actually weakening that person’s confidence in his/her own abilities and respect for oneself. We should give, not loan money to those who are doing everything they can to evolve and realize their full potential.
There is an old saying: “If a problem can be solved with money, it is not a problem – it is an expense”. Your ability to be emotionally stable will give you a much bigger chance to come up with new ideas to earn money in the time of crisis. However, don’t mix emotional stability with not caring about the money. Money, as any energy, needs emotional appreciation and attention. It is important to invest your potential with passion in order to get back the money you deserve for the goods produced or services provided. Remember that it is ok to fall, but it is not ok to stay on the ground for too long mourning your failure. Our life has its cycles: ”there is time to throw the stones and there is time to collect them”. It is important to be flexible and be able to adapt to the changes in the surrounding environment. A tree that is rigid during the storm has much less chance of survival than the one that is flexible and can bend in different directions (but when the storm is gone don’t forget to get back to the vertical position with your green leaves directed towards the sun). Every storm will pass sooner or later, it will all depend on how well you can direct the energy of your emotions towards the things that need to be done during turbulence. It is true in what they say: “Money can’t buy happiness” but knowing how to correctly interact with the energy of money can be a very enjoyable game and open many opportunities for you to realize your potential.
Improve the script of your life that you are writing every day.
Dmitriy (aka Life Script Doctor)
Originally from Ukraine, Dmitriy (aka Life Script Doctor) have studied new spiritual science Infosomatics and how human brain interacts with the levels of higher consciousness. He continues his research in many other self healing practices, teaches how ecological worldview based on the laws of Nature together with different visualization/meditation techniques can help people resolve their problems with health, personal or professional life. More at: http://www.lifescriptdoctor.com/.