5 Money Moves Only the 1% Use - YouTube

Out of over seven billion people it's only one percent of the world's

population that have mastered how money truly works the rest of us are probably

fixated on some worn out money concepts we acquired from childhood if you

genuinely want to become rich you need to start doing what successful people do

and in this video i will share with you five money moves only the one percent

use money move number one determining your definition of wealth what does

wealth mean to you this is the first question you should confront before

setting out on a wealth building journey deciphering your own meaning of wealth

will help give your life a sense of purpose and stop you from chasing the

wind the thing is while the majority assume that wealth is the equivalent of

having a million dollars in the bank this blanket definition isn't

necessarily true just like happiness wealth triggers different meanings for

different individuals to some being wealthy means affording material

luxuries that are off limits for the average person these luxuries might

include things like fancy cars exotic vacations million-dollar homes and

designer fashion brands to others however wealth implies financial

security that is having enough money or asset seconds is staying their lives for

a long time both these definitions are valid but there's also another group

that completely isolates wealth from monetary value to this caliber of people

wealth corresponds to non-material things that money cannot buy think

happiness joy good health freedom and inner peace so who's right and who's

wrong the answer is no one and everyone listen here the idea that there's a

conventional definition of wealth is a big fat lie all these definitions are

valid as long as they derive long-term life satisfaction however i have to

admit that many people grow up with the first definition drilled into them yet

this money focused mentality is misleading it creates the impression

that building a fortune is the only gateway to happiness which isn't true

the truth is we have happy millionaires and those who are depressed similarly we

have people who earn just enough to have a roof over their heads and meals to eat

yet they are incredibly happy hear me out i'm not implying that dreaming of a

forbes feature is utterly unacceptable instead i'm reinforcing the idea that

this isn't the only hallmark of wealth and overall success if having tons of

money doesn't make you happy you don't have to chase it wildly as most people

do neither do you have to ditch your dream of making it to the forbes if

that's what drives your purpose what you need to do is unravel the definition of

wealth that resonates with your inner identity whether it's being debt free

owning multiple homes or finding genuine love and happiness chase that at the end

of the day not all of us can claw our way to becoming billionaires right the

successful one percent of the world's population know this hence most don't

chase money through doing things they love or purposing to derive positive

change in society they're able to derive massive financial benefit money move

number two acknowledging and managing lifestyle inflation are you wondering

why your monthly take-home pay is depressing despite getting a raise last

year perhaps you're confused as to why you're still trapped in debt yet your

business generates wholesome profits it turns out your financial trouble could

be another case of lifestyle inflation also known as lifestyle creep this is

the tendency to increase one's expenditures when the earnings shoot

upwards drastically some common occurrences that syrup lifestyle

inflation include job promotions financial windfalls salary raises or

radical business growth in real life examples lifestyle inflation manifests

when you move into a lush neighborhood whose rent is twice what you used to pay

or when you buy a new car and move your kids to a top class private school when

you get a better paying job if left unchecked this little monster can

squirrel away at your savings destabilize your budget and land you in

massive debt the only way to combat such dreadful consequences is to acknowledge

that lifestyle inflation is a problem you're facing then map out a plan to

help you manage it but before you emerge with the best strategy to mitigate

lifestyle inflation it's essential to know the causes why do most people

inflate their lifestyles when they get more money outrightly having a wrong

mindset is the main starting point for lifestyle creep most people think that

the journey to financial freedom is competition so they want to create the

impression that they're winning most lifestyle upgrades therefore are fueled

by the desire to keep up with social pressures either you feel like buying

the same car as your wealthy colleague will improve your status or purchasing a

fancy home will make you more likable to your peers in as such you'll also enjoy

the thrills of a new gleaming car for a fleeting moment the long-term effects

however will only hurt your chances of becoming rich secondly lifestyle

inflation arises from the absence of delayed gratification before upgrading

to that new iphone ask yourself this question can it wait more often you'll

find that most purchases are not emergencies and can therefore tailgate

urgent needs like saving or investing so if your current home is still in good

shape there's no need to spend 15 000 on a home renovation now don't get me wrong

some of these upgrades are inevitable no one wants to live like a college kid yet

they have a good paying job right nevertheless a spontaneous lifestyle

change will be difficult to sustain instead of spontaneously moving your

lifestyle from point a to point z initiate slow changes for instance it's

wiser to budget and save for big purchases instead of buying them at one

go and if you feel compelled to live a certain lifestyle despite not being able

to afford it sternly say no to yourself your bank account will thank you money

move number three saying yes only when it makes sense did you know that

learning how to say no has the potential to make you wealthier this is one money

secret that only one percent of people know and apply in their daily lives and

you should pick it up too before you commit to anything first conduct due

diligence on how much value the undertaking would add or subtract to

your life if you do this you're putting your well-being in front of everyone

else's and that's totally acceptable in fact it's a brilliant way to stop

yourself from losing money to ventures you don't understand even if the idea

comes from the most educated person you know make sure it makes sense to you

first this also applies to how you spend your time see some activities seem

enjoyable on the surface yet they had no tangible value to your life maybe

someone needs you to look after their child or help them out with an unrelated

project to your line of work if you have some extra trauma in your hands you can

always help but if not there's nothing wrong with turning down their calls so

you can complete your projects instead the thing is once you condition yourself

to agree to anything anyone says you're setting up yourself for imminent failure

not only will people start taking advantage of your time but you also lose

money to tricksters who can easily spot naive investors like you money move

number four learn to take bigger risks it's no secret that risk-taking is the

cornerstone of financial success if you're too risk-averse then you'll take

an insanely long period to grow your money and strike off your long-term

financial goals however taking more significant risks is only easy on paper

in the real world the idea of standing at the edge of the cliff and making the

jump intimidates the masses so how do you increase your risk appetite is it a

matter of having blind faith or is it possible to mitigate the risks involved

it turns out it's actually possible to outsmart risky ideas the first step is

to embrace the possibility of failing look at failure as a chance to start

over or find new approaches for doing things once you get rid of your fear of

failure proceed to dig up as much information as you can about the risks

read books follow blogs listed in podcasts and watch relevant youtube

videos i can guarantee you that self-education is a key that will open

many financial doors for you even those that look risky additionally educating

yourself will give you confidence and eliminate any doubts instilled by other

investors or the media the more you read and learn you'll eventually discover

loopholes and increase the volatility of an investment idea when you do start

thinking of creating a rich financial reserve whether you want to start a new

business or invest in the stock market for the first time make sure you have a

solid backup plan if things take a negative turn this can mean building an

emergency fund for your living expenses or diversifying your investment

portfolio across multiple sectors and asset classes this way you won't suffer

crippling losses in case one of your investments takes a dip on top of that

having a backup plan will also help you bounce back faster if you make a wrong

move lastly always trust your intuition and focus on the long-term goal don't

get discouraged by an investment idea that looks risky in the short term for

instance the stock market may experience fluctuations in a year but the long-term

returns are definitely rewarding money move number five reviewing your

financial progression over time of course everyone has different parameters

for measuring financial progress whatever your financial progression is

for you it's crucial that you emerge with a consistent system to measure or

quantify it why is this important well reviewing your financial progress is the

only way to evaluate whether the strategies you've employed are actually

working in your favor more so when you're working with a finance coach

tracking your financial progression is the best way to evaluate their

performance secondly tracking your progress plays a significant role in

keeping you motivated nothing beats the feeling of looking at your bank

statements and all you see are cash inflows definitely a positive record of

accomplishment will boost your willpower to achieve your financial dreams i'll

use an example to illustrate let's assume you've been using a specific debt

repayment method to clear your huge credit card debt in the next one and a

half years when you started using the strategy your credit card debt amounted

to fifteen thousand dollars which is very damaging to your credit score if

your credit card debt hasn't scaled down by at least 70 at the end of 12 months

this can be an indication that you're doing something wrong if on the other

hand you've managed to pay off 85 percent of your debt this will push you

to finish off the whole amount with that said it's also true that tracking

financial progression isn't very straightforward if you can't afford a

financial advisor calculating your net worth is your best shot your net worth

is the sum of all your assets minus your liabilities your assets refer to any

valuable holdings that can potentially generate income the best examples are

real estate property and stocks conversely liabilities are things that

cost you money think of any form of debt such as a mortgage while calculating

your net worth you'll add the market value of all your assets then subtract

the total amount of your liabilities the figure you obtain is your net worth and

it's regarded as the best tool for gauging financial progression if it's a

positive figure that's a good sign because it means your assets are more

than your debts speaking of signs if you want to know these 7 signs you're going

to be rich then watch this next video to find out now