Updated: Feb 8, 2022
Being successful with your money has very little to do with how intelligent you are and what you know. It really has more to do with how you behave. The biggest obstacle we will all face is ourselves when managing our money. Self awareness is so important because we need to understand what can trip us up, cause us to go on spending sprees, get into debt, not save or just spend more than we earn. Rumbling with our money behaviours and understanding what fuels it, is important. It can provide us with the information we need to establish healthier behaviours that will serve us and grow our wealth rather than diminish it.
In his book, "The Psychology of Money", Morgan Housel explains quite brilliantly that the mindset and mental fortitude you need to get rich and earn alot of money will need to change when you wish to keep the money you earned so hard to get. If you apply the same strategy you will likely run into trouble very quickly and have very little wealth to show for it in the end.
We all know of celebrities, investors and entrepreneurs who have done extremely well in their field, only to squander their wealth and be left with next to nothing. It's important we upskill ourselves and understand what skills are needed and when to use them. To earn money and get ahead financially, we need to hustle, take calculated risks, become focused and take action. Grit, a strong will and perseverance are our allies. This mindset is important and necessary. We do need to go all in.
But when we have money in the bank and are in a position where we are putting money away for our future, we need to exchange some skills for others. We can no longer afford to take on too much risk and double down on the next sure thing. Instead we need to show some humility, have money saved for emergencies, be ready for the unexpected and diversify our investment exposure. In other words, our mindset needs to shift.
This paradigm shift is so important. We need to know what tools to use and when to use them. I strongly advocate that we all need someone we can trust that will stand between us and our money like a coach. This will give us clarity and peace of mind, not to mention help grow your wealth alot more effectively.
In summary, understand that our behaviour is going to impact our wealth the most. Self awareness and knowing how we behave and why we do what we do is crucial to start developing healthier money habits. We can't work on a solution if we don't know what the problem is, so get honest. We are responsible to upskill ourselves and use the appropriate skills at the appropriate time. A coach can help you with all of this.