Money Mindset | How to think like a Boss
Welcome to the Elias Talks Money V-log where I talk all things money & motivation. In my previous video top 3 reasons why people go broke the third Reason I talked about was having an employee mindset.
To remind people this is not meant in a derogatory sort of way. What I mean is that they don’t have that ownership mentally over their own finances. They work 9 to 5 at a job and they bring that kind of mentality to their financial life.
I really saw this working in finance for several large companies. I was surrounded by people who were smart and did a good job handling the companies money. But when they came to managing their own money they didn’t exercise that same level of care. They were smart people, who were very capable, probably just like you, but they just procrastinated on taking control of their finances. Don’t make this mistake. Don't go whichever way the wind blows you.
Some people see the things that they want and some see the things in the way of what they want. The key to success and getting past this is to be able to set goals, in a written format and then consistently follow-up on them and focus on execution rather than dwelling on barriers.
Be intentional about your life whether it be your finances or another aspect of your life. You will always have things that will try and influence you and sway you from side to side. Ultimately though, discipline equals freedom.
Let me repeat that because it is very important. Discipline equals freedom. And Off course, I mean this in a psychological sense. If you aren't taking charge of your life and constantly being yanked around by other people, family, peers, your computer or cell phone, or even the TV you are a captive a captive to circumstance. A mental prison is not a desirable place to be in.
For some people perhaps there is a fear of failure, that if they somehow take responsibility for their money and things don't work out then they will be responsible, so they somehow decide to do nothing or blindly defer to other people. It's okay to fail or to make mistakes life. It's not realistic or possible to have a perfect track record.
Anybody who was success at anything made multiple mistakes along the way. They key is to learn from their mistakes quickly and then adjust your approach.
Personally, I once lost $30,000 USD of my own money in a single day of trading derivatives in the oil and gas market several years ago. I got down on myself for a few days, but it was the motivation that I needed to re-design my trading and investing practices and that has subsequently given me much higher risk adjusted returns since then.
I want all of you to dream big. Find you guts and will to fight. Difficult moments build your character. Obviously, I'm not saying to be reckless and make mistakes needlessly, but if you have a bump in the road it's okay. Even if you go out and ensure to educate yourself fully before making financial decisions you will still make mistakes.
All I can ensure you is that if you take the time and energy to educate yourself, execute, and take a CEO attitude over your money overall you will have better life results than sitting on the sideline or blindly deferring to others.
There is no better day than today than get started. When we are young we are told we have a lot time, but that is baloney. You don't have a lot of time in life the earlier you realize that the better of you will be. Life goes by fast it goes by quickly, and if you don't get of your but and make changes you'll grow be old and empty with a bunch of regrets.
Treasure and make valuable use of everyday. Do you want to be that old person sitting around saying I could have done this and I could have done that? If only this or only that? Don't live a life of regret.
While some decide not to take control out of procrastination others believe they can blindly defer that responsibility over their finances to someone else. That it's not their problem to deal with.
You could get lucky blindly deferring your financial future to someone else, but often if you don't take proper oversight over your money your money will go missing. Do you want to entrust your financial future to luck?
To be clear if you defer to someone else that can be okay, but remember ultimately you have to be the boss or the CEO of your money. They report to you and ultimately you are the one that will suffer if they make poor decisions.
The CEO of a company might know the ins and outs of all his employees, but he or she should know enough to make the right decisions and hire the right people, so this doesn't get you off the hook of financial education.
My grandfather owned a successful farm in Ethiopia a long time ago in the 1950s and 1960s, and at one point he needed to leave the country for an extended period of time for personal reasons and he innocently entrusted some family member to run the business.
They ended up ripping him off and leaving his immediate family including 5 children, 1 of which is my mother with nothing after his passing. It's okay to trust people, but you need to verify and check up on them. If they aren't serving your best interest act decisively and fire them if you need to.
One thing to be aware of when your dealing with people is to know if they are your fiduciary. It's an important question to ask. As defined by Wikipedia a fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties. Typically, a fiduciary prudently takes care of money or other assets for another person.
Generally, lawyers and accountants act in a fiduciary capacity to you but a financial adviser for a bank or investment firm that sells financial products like mortgages or investments might not be. They are sometimes acting in the best in interest of their company not yourself. Make sure to be aware of this.
Additionally, It's important to know how people get paid and how that aligns to your best interest. For example, some investment managers get paid based on assets under management and while some are more compensated on performance basis if your money increases in value.
Your money is nobody responsibility but yours! You're in charge of your financial destiny. Don't make excuses about suffering financially because of other people. No matter what the reason. You must be the leader and you can’t be a back seat driver. It can be tempting to turn your brain after a long day of work, but it’s something that you literally can’t afford to do.
If you don’t understand something you do the research; you ask and you learn.
If you go to your neighborhood financial institution or other person and they give you some advice trust but verify. If you buy a bad financial product there are not refunds. Ultimately you’ll need to rely on others to some extent when making financial decisions whether it be financial advisers, lawyers, real estate agents, or car salesman. But think of yourself as the boss man or woman for your financial affairs.
If you want to succeed define your why. It's very important. Money is just a vehicle, what are you gonna do with that money? How are you gonna spend it? Will you help feed the poor and help those with less opportunity? Will you build a family legacy? Is there a social cause you are passionate about? Do you want to spend more time with family and friends? How do you want to leave your mark on the world? By defining this in writing it helps to give you the motivation on taking charge of your finances.
Thanks for watching my video if you like the video please like it, and hit the subscribe button. And the bell button so you get notified immediately when my new videos come out. If you have a personal story that you were ripped off by not paying attention to your money and trusting others please share. I would love to hear to it. Lot's of people go through this there is no shame.
Key lessens on this video is do not procrastinate on your finances or anything else in life. The fact that you have lots of time is a myth even if you are young. It's okay to trust people with financial thing things, but you need to provide the right level of oversight, and be ready to fire them if they aren't doing the job that you wish. Like a CEO you won't know the ins and outs of all aspects of their job, but you need to know enough to be their manager and hold them accountable. If you give them the keys to your house make sure you have an extra key, and be ready to change the locks if needed. Finally, define your why to find your motivation to get that CEO mentality. That's all for today over and out!