FYI | Day 25 – Money

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For Your Inspiration! (FYI!) Month 2011 – This article was part of an exciting and challenging month dedicated to discovering passions, setting goals, learning success strategies, and sharing thoughts to ponder throughout the day!  If you’d like to find out what this month was all about, check out FYI Month 2011 for more information!

FYI: For-Your-Inspiration Month!

“According to your latest figures, if you retired today, you could live very, very comfortably until about 2 p.m. tomorrow.” ~ Real Life Adventures Comics.

How do you feel about money? Is money important to you?

Of course is it! Perhaps you don’t need much to consider it enough, but everyone values money because it has become a basic need for survival and a source for many of life’s pleasures. People don’t covet money, which contains zero value in itself; they covet the stuff and the lifestyle it brings. A 30-foot yacht doesn’t equal happiness, but it sure doesn’t hurt either.

How much money do you need to be enough? How much is needed for your ideal life?

Answering these two questions will determine your drive and focus towards wealth generation. If you want to be wealthy, you have to decide to be wealthy. If you want to be rich, you have to define what rich means. How much money is considered wealthy? You need to discover for yourself what ‘wealth’ means to you.

How does one establish a baseline for how much money is needed to be wealthy? Easy…

Find out what it costs to finance your dream life at this moment, and in the future, and set this as your benchmark.

Get Smart

If you would like to improve your financial situation and make your ideal lifestyle a reality, you have to get smart. Not many people are reared with a healthy dose of a financial education. Most of us are not taught the value of money and smart money management techniques until a much later age.

Here are some principles I think everyone should be aware of (For now, Google these concepts for more information… this is a site about developing a rich soul, not wallet Winking smile):

  • Pay yourself first. Before you even spend a dime, make sure you pay yourself first by putting away a percentage of your income. Read the classic book “The Richest Man in Babylon” by George S. Clason!
  • The Latte Factor. A term made famous by David Bach to describe all the unnecessary expenditures we make on a daily basis and the impact they have over your life time. The main concept is an easy one-step plan to live and finish rich. Check out “The Automatic Millionaire“.
  • Compound Interest. the idea is simple enough: Money saved today is worth more than money saved tomorrow. If you put away $1000 invested at 10% per year, after the first year you will have $1100. Now, you have $1100 that will accrue another 10% the next year for a total of $1210. This repeats every year. At this rate you will double your money every 7 years! Check out the “Rich Dad, Poor Dad” series by Robert Kiyosaki.
  • Pay With CashThe average American household has around $10,000 in debt. Credit cards make it too easy to spend. Start paying with cash so you can see the money leaving your wallet and exchanging hands. This has a big impact when you start to notice your wallet emptying very quickly! Become AWARE of your spending!
  • Automatic Withdrawals. This helps with paying yourself first! Remove the payment to yourself before your paycheck even arrives! You can set this up with the bank, or your employer. This has the psychological benefit of never letting you feel that the money is yours to spend. Do not touch these payments to yourself until you have reached your ideal financial situation.
  • Instant Gratification. We love instant gratification and is a big pitfall for most of us. It’s hard to turn down pleasure when it is right in front of us and ripe for the picking. Instant gratification is not based on rational thought but rather from emotional needs and physical desires (read about Pleasure). Whenever you feel the impulsive to buy right now, force yourself to sit on it for several days before making the purchase. If the item is small (a few dollars), decide if you really need it and if the money can be better spent (or saved) somewhere else.

Do What You Love

I am a big believer in the ‘Do What You Love’ principle.  If you do what you love, the money will follow. Why? When you do this, you are perfectly aligned with your passions which allows energy, motivation, and success to be attracted to you in abundance! That doesn’t mean it’s easy; it means that burnout is less likely and you will naturally and continuously improve and become part of the elite in your area of interest.

Do what you love, master it, and the money will follow.

* Don’t take this too far. Your passion has to have a market to appeal to. A passion for dressing up pet lobsters like princesses will not pay your mortgage.

Become Conscious about Your Money

Do you know what your net worth is? (The difference between your number of assets and liabilities?) Rich people tend to acquire assets, whereas others tend to accrue liabilities which they confuse to be assets. Assets bring you money and liabilities take money from you.

Are you aware of all your month-to-month expenses? Do you have debt? Do you have a financial plan? Are you insured enough to protect your assets?

Think about it!

“The life you live in the future will be the result of today’s thoughts & actions.” ~ Jack Canfield in The Success Principles

Limiting Beliefs Towards Money

Are you restricting your ability to become financially abundant by the beliefs you hold about money? If you believe money doesn’t come easily, then it most assuredly will not. If you believe that making money is about being lucky, then you surrender your ability or drive to acquire it without ‘luck’.

When you were child, or even today, did you hear things like:

  • Rich people only care about money.
  • There’s not enough money to go around.
  • You can’t buy happiness.
  • You have to have money to make money.
  • Money is the root of all evil.
  • If you are rich, you can’t be spiritual.
  • Money doesn’t grow on trees.
  • Most people with money are evil, bad, and unethical.
  • People with a lot of money are selfish and self-centered.
  • Everyone can’t be a millionaire.
  • Poor people can never get out from under.
  • Rich people are seldom happy.
  • What were you taught? What do you believe?

Holding on to beliefs like these will only lead to fulfilling them and attaching negative energy to your wealth generation.

Your Task

Create your own definition for Financial Security (having enough) and Financial Freedom (ideal life). Financial security is a feeling of safety, whereas financial freedom is when you can live your ideal life off the income you generate from your assets and multiple streams of income.

How much is enough? How much is ideal?

Write down your ideal amount and put it somewhere you can see it!


I mentioned several concepts that need to be delved into deeply if you want to improve your money smarts.  The books I recommend on these concepts are:

This post was written by

Greg has written 69 articles on Student of Me.

Greg is the creator and primary writer for Student of Me. He probably spends way too much time on the computer writing, researching, programming, and working on his photography. He loves escaping from screen-time to travel, ride his motorcycle, experience the outdoors and spend time with loved ones. You can contact him at greg (at)!

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