Simple 'Financial Codes' To Live By
The nature of finance is very akin to the nature of water in a sense that it is fluid and takes on many shapes or forms. The essence of which I believe is to facilitate the exchange of value.
Finance hasn't been left out with the current and rapid technological evolution we're experiencing. Not only has it (i.e finance) become more sophisticated but we've also learnt some interesting concepts that we didn't know about before. Picture using a microscope to inspect any small creature of your choosing. You will be able to see its multiple features with intricate detail and understand how they all connect to become a whole.
Crypto is fairly complex and the majority of oldskools are finding it hard to come to terms that the financial world has changed. The new ones, meanwhile, welcome it with open arms.
In this post, I share with you some financial codes that I live by in this new financial era we're entering (or have we already entered it?). The fact that things has changed doesn't discredit the fundamental principles. Water is still water. Saying financial codes is just me stamping technology on finance.
IF You're Not Earning Enough, THEN Learn More.
Traditionally, earning more usually means being promoted or securing a higher paying job than your current one. It's basically a corporate horizontal ladder where almost everyone's aim is to get to the top. In some cases, especially from where I come from, you don't have to learn more to reach the top, just know the right people.
However, we've come to realise that there's a cap at the top on average and like a ceiling you can't go any further. These recent economic situations have skyrocketed the price of goods and services and if your earnings haven't skyrocketed, its just a matter of time before you find yourself in some financial trouble.
For me, I believe the solution is taking matters into our own hands, educating ourselves and increasing our earning potential. I believe the statement the more you learn, the more you earn is true. Knowledge is power and it can be rightly used to increase our financial gain in an increasingly complex financial world.
Save First, Then Invest
The paradox with savings in the modern era is that there's many ways to save yet little to no money to safe. I used to think that saving is only for the wealthy but I've come to realise that anyone can start saving money with some discipline. Without discipline, there will always be little to no money to save.
The mistake for me is that I skipped the saving part and jump right into investing. I think that's not the right way to go because saving is important. Besides the good habits that it imparts, you'll be able to accumulate more money (thereby investing more) and you'll have time to think about the investment, whether it is right for you or not.
What's Rewarded Tomorrow Is Done Today
The farmer doesn't wait for the first drops of rain to plough the land nor does the bird wait for the sunrise to go hunting for worms. Many of us fall victim to the waiting game. Waiting for that opportunity, waiting for the right time, waiting for the market to rise or fall. I understand, waiting is an art and we all want to do more with less.
However, the more we wait, the more time we lose. Circling back to crypto, I have a friend of mine who's waiting for the green light to get into the space. The interesting thing is that each time a green light comes and he's about to enter, a red light soon follows! He has been waiting for over an year now.
For me, tomorrow is as much important as the present and through the latter we build the former. The current financial upheavals and the opportunity it brings is a great way to build wealth for the future. The opportunities wouldn't be around forever and like a window it will be shut off eventually.
Conclusion
In the digital age, The way we make money is changing and one of the best ways to making more is by learning more. Being well informed and knowing what's happening is also important.
Investing has become so easy that we can all do it from the comfort of our couch. However, savings is a gateway to investing. One could say that it is the foundation to good and thoughtful investing.
It is true that opportunities come and go like the wind. But some opportunities, like the once in a lifetime opportunity, shouldn't be allowed to pass by or wait around for the coast to be clear. Rather, we should seize it and like a horse, ride it and don't look back. Everything will be figured out along the way.
Thanks for reading!! Share your thoughts below in the comments.
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