Money Archives

How Personal Finance Stories May Be Influencing You

Do you allow personal finance stories to change how you use your money? Do finance stories scare you away from making certain decisions or inspire you to invest in certain things? According to Morgan Housel, the author of The Psychology of Money, falling for financial success stories can cause you to make poor financial decisions. Listening to the personal finance stories of others can influence you to risk your financial health based on hope, or even make you think that you have more control than you actually do. Here’s why you should be careful what stories you believe about money.

Spending More Than You Earn = A Lifetime of Poverty

Do you ever make purchases even though you know they will put you in debt? Do you know how spending more than you earn can affect you for years to come? In his book The Millionaire Fastlane, MJ DeMarco discusses insatiable consumption, or the never-ending desire to spend money. While spending money isn’t fundamentally a bad thing, if you spend more than you earn, you are dooming yourself to a lifetime of poverty. Here’s why you should think twice before buying things you don’t need.

Why the Traditional Formula for Wealth Falls Short

What’s the traditional formula for wealth? Does the formula work? What uncontrollable factors doesn’t it account for? In The Millionaire Fastlane, multimillionaire entrepreneur and investor MJ DeMarco challenges conventional wisdom about how to create wealth. He says that the traditional formula for wealth—getting a stable job and investing—may work, but it’s not necessarily going to make you happy. Here’s why you should re-think your financial plan.

How to Develop a Survival Mentality Around Money

What does it mean to have a survival mentality around money? What three ideas around money should you develop? In his book The Psychology of Money, Morgan Housel suggests developing a survival mentality around money. This means accepting that you could lose all your money at any time, so you follow certain steps to ensure you protect your assets. Here are the three steps for developing a survival mindset.

How to Put Together a Long-Term Financial Plan

Do you want to put together a long-term financial plan? Why should you be sensible, rather than logical, when planning for the future? To be logical is to make a decision based on known facts, while to be sensible is to show sound judgment. They are similar, but they are not the same. In his book The Psychology of Money, Morgan Housel suggests making sensible decisions when making a long-term financial plan because it will put your mind at peace. Here’s how to create a feasible financial strategy, according to behavioral finance expert Morgan Housel.

How to Increase Your Income: 7 Tips From a Millionaire

Do you want to know how to increase your income? What kinds of businesses will make you rich? In his book, The Millionaire Fastlane, entrepreneur and millionaire MJ DeMarco says that the fastest way to become rich is by creating a business that generates passive income—and then compounding that income. However, not all businesses will make you rich. Here are DeMarco’s seven methods for dramatically increasing your income.

How to Financially Plan for Goals to Change

Have your life goals changed over the years? Do you have the same goals you did 10 or 20 years ago? A fact of life is that goals change over time. However, people often deny this fact and try to plan for the future as if nothing will change. That’s why Morgan Housel, the author of The Psychology of Money, says that you should make a financial plan that is flexible. Here’s why you should have finances that can change with your life.

Morgan Housel: Why Money Is Happiness

Why do they say “money can’t buy you happiness”? Did you know that statement is fundamentally wrong? In his book The Psychology of Money, Morgan Housel explains that money buys you control over time, which is the key driver of happiness. When you have control over how you spend your time, you can spend it on things that bring your happiness. Here’s why money is happiness if used responsibly.

Don’t Let Investment Uncertainty Hold You Back

Does fear of uncertainty hold you back from investing? Are you nervous about putting your money in a long-term investment account, not knowing how much it will grow? According to Morgan Housel, the author of The Psychology of Money, investment uncertainty holds many people back. However, the longer you put off investing due to fear, the smaller your returns will be. Here’s why accepting uncertainty is key to achieving long-term investing success.

How to Start Saving Money Regardless of Your Income

Do you regularly put money aside in a savings account? Why is it important to save money? We’re told from a young age that having a savings account is important, but many people don’t have savings because they feel like they don’t make enough money to save. According to Morgan Housel, the author of The Psychology of Money, this way of thinking is incorrect and harmful—everyone should save money even if they don’t have a high income. Here’s how to start saving money even if you don’t have a high income.