My father is the reason I pursued a career as a financial advisor. Not because I was following in his footsteps, but rather because I followed his advice.
He is a successful entrepreneur and business owner with no degree and little educational background. At an early age, he taught me valuable lessons about money that you would not typically hear from your financial advisor. These tips are unconventional, but they are based on common-sense principles that have been proven over his lifetime.
The five top lessons I learnt include:
- Making money is easy.
- You can always make more money, but you can’t make more time.
- Become a rainmaker, not a rain catcher.
- Work smart, not hard.
- Execution is everything.
Making money is easy
Have you heard the term ‘money mindset’? When you change your mindset about how you think about money, it becomes easier to make more of it. If you think that wealth is impossible, then it will be impossible for you to have any wealth. If you believe that wealth is possible, then you’ll be much more likely to achieve it.
Your money mindset defines how you think about money and influences how you save, spend, and manage your debt.
It’s your core beliefs about money and your attitude towards it. These ideologies can stem from your environment, influences from family, friends, and other areas as you navigate through life.
Shift your perspective on finances and adopt a positive money mindset through financial affirmations like ‘making money is easy’. The way you talk to yourself plays a huge role in addressing your finances. That’s what money affirmations are about: helping you visualise results and keeping you focused on your goals. When you are constantly reminding yourself of all the things you will accomplish and reinforcing them positively, slowly you begin pushing negativity aside and draw closer to your end goal.
You can always make more money, but you can’t make more time
Money is the most powerful tool in the world because it allows us to create anything we want. They say that money can buy happiness, but it can also buy unhappiness. My dad taught me that money isn’t everything and that material things don’t make you happy. It’s essential to identify what makes you happy and then create a life around those things. Your value is in more than just what you make.
Your value is in the time you have, and the time you have to do things that matter.
And if we want to be happy, we need to enjoy our lives while we’re here. You have to enjoy making money. So if you’re not pursuing your passion now, ask yourself why. And by following your passion, I mean pursuing either something that makes you happy right now or pursuing the freedom necessary to indulge your passions once you’re financially free. Not all passions pay money, and passion shouldn’t be about money. It should be about being happy and making the most of your time on this planet.
Become a rainmaker, not a rain catcher
There are two types of entrepreneurs –rain catchers and rainmakers. One waits for money to come in, and the other gets after it and makes it rain. Rainmakers know they must learn to stay ahead of everyone else continuously. You become a rainmaker by starting your own business or investing in property and creating a passive income for yourself. Passive income is important because it creates stability, security, and freedom in your financial life.
Additionally, since passive income is not limited by your time and effort, it can positively and significantly affect your ability to build wealth.
Work smart, not hard
Work smart, not hard. It may seem counterintuitive at first, but the truth is that working hard at something isn’t always enough to get you anywhere. You must work smart as well. Don’t work for money; let money work for you.
You do this by taking control of your finances and then using that control to improve your financial stability and security continuously. This idea, to me, is extremely powerful. We are so entrenched in the school of thought that we have to work hard to get paid that we think only the rich can afford to take time off and have their money work for them. If you want to be successful, stop thinking about what other people are doing and start thinking about what you’re doing.
Stop worrying about what everyone else has and start worrying about what they don’t have. Stop worrying about what everyone else has done; worry about what everyone else hasn’t done yet.
If you want to get rich, stop looking for a job and start looking for a business that will give you a passive income.
Execution is everything
Execution is not easy. It takes hard work, focus, and determination. All of the wisdom in the world is worthless if you don’t execute it. But if you’re willing to put in the work, you can build a business that works for you and provides a passive income stream for life. Execution is about taking action. It’s about doing what needs to be done, even when you don’t want to.
Successful entrepreneurs are great at execution because they know how to put their plans into action. They get things done by doing them repeatedly until they start working perfectly.
If you want to achieve something big, execute your goals every day until they become habits. If you do this consistently enough, these actions will eventually become second nature and won’t require as much effort as they once did.
These five tips sum up most of my father’s wisdom on money, and they were all-powerful in shaping my financial outlook and decision-making.
I would suggest partnering with a financial advisor to help you look at life through a different lens. They can offer an expert opinion, ask probing questions, and guide you toward financial decisions that are right for you in your unique situation. Ultimately, the choice is up to you. But having a trusted advisor on your side can sometimes provide the extra reassurance that you need to take the next step.