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You Should Understand What Money Really Means

You Should Understand What Money Really Means

“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” Oscar Wilde.

Money is a strange concept: those who do not have it aim for it and those who do have it are full of apprehensions. But really, what is money? It is hard to define money, and agree on one single definition of it. We can make our lives easier if we understood what money really is:

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Money: It’s a need

To be honest, there is little left that you cannot buy with money. Money is essential for survival if not for comfort. The comfort and luxury come only when you have more money than you need for surviving. Who doesn’t want a new car; an air-conditioned well-furnished house; trendy clothes and all the new gadgets and gizmos in town?  Therefore, it is not the cause of everything wrong in our society, but it is a means of staying in society.

Money is all about control

It is easy to lose control whenever and wherever money is involved. Damaging factors such as greed, money lust, power can take control over the sanest of humans; especially, when the line between these factors and factors such as survival, expenses and comfort is thin. People want to match up, or to stay a step ahead of, the current lifestyle of their peers. This makes them lose their focus to fulfilling their hedonistic needs. What they don’t realize is that fulfilling hedonistic need is a trap of consumerism.

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Dreams come true: because of money

Those who dream to make a fuss of money, fame and power need to realize that you can make money only if you have money. You need to be smart about money to reach a certain benchmark, and when you have attained that benchmark you can make your dream into a reality. It is not necessary, though that you dream only of dollars and cents, your dream can be internally rewarding rather than being financially beneficial, such as that of being a writer, artist, blogger and so forth. What you can do is not starve and enjoy such endeavors if you plan them out smartly and have a supplementary income balancing your primary income.

Easy to be a slave to money

It is easy to be a slave to money, especially when it can open gates of luxury and comfort for you. Consumerism is a tricky spider, which can trap you in its web. As I said earlier, money is all about being in control and using that control to make your dreams come true.

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Budget: Track your expenses

You should be aware of how much you make and how much you are spending. You should also be making more than you can spend. Track down your expenses to see where you are spending the most and to cut that expense down, if necessary. The reason behind this is to make sure you have enough cash left over to invest in a nest and/or that you remain debt free.

Create a vision of yourself for yourself

Of course dreams are just dreams, you need them to be realistic enough so that they can be incorporated into a vision that you have built for yourself. The vision will help you set a timer on your activities, so that you can move on to the next step until you ultimately reach a desired state you have been aiming for from the beginning.

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Money or Self-worth: difficult choice to make

If you ask any wise man in your circle, and anyone who has had experience with making money they will claim it is a mutually exclusive decision regarding self-worth and money. You cannot have them both at the same time, but making money is empowering, and therefore, if you make little money, you can be happy because the source of it increases your self-worth.

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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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