Wealth Well Done: Podcast.

Interest rates are rising.  The financial landscape is changing.  It’s becoming easier to make money from our cash.  These changes in interest-rates have inspired me to update my emergency-fund strategy.  Here is my mission statement:   My goal is to transform my emergency-fund from a liability of $20,000 cash that is losing value to inflationRead more

You must take risks to live an extraordinary, deeply-meaningful life.  I am a huge believer that taking the right smart risks can act like a turbo-booster to help you get what you want out of life.  But the risks have to be extremely smart risks.  Dumb risks turn into pain, frustration, and regret.  Smart risks turn into the awesome results that you fantasize living in your dreams. So what are smart risks, and how can you tell the difference between a smart risk and a dumb risk?  I developed a system that helps me evaluate which risks that are smart to take.  Every time I am encountered with a new idea or opportunity, I go through this mental checklist to help me evaluate the associated risk. If the risk passes the checklist, I jump into the opportunity head first and try to turn it into gold.  If the opportunity fails my checklist, I avoid it like it’s a massive skull-eating monster that is trying to bite my head off and chew it a little bit. HERE IS THE RISK CHECKLIST I USE TO EVALUATE STUPID, AND SMART, RISK: Question #1:  Is it Legal? Question #2:  Is it Ethical? Question #3:  Can I Afford it? Question #4: Will I get Hurt? Question #5:  Do I Want to Do it? Question #6:  Can I Achieve my Purpose in Life if I don’t do it? Taking smart risks has been my biggest secret weapon to create everything good (wealth) that has happened to me in the last 5 years.  Smart risks are what led me to meet my wife [https://www.wealthwelldone.com/falling-in-love/]; start my first business [https://www.wealthwelldone.com/start-a-business-sales-success/]; manage my money on my own [https://www.wealthwelldone.com/master-money-and-investing/]; buy an investment property [https://www.wealthwelldone.com/how-to-be-a-good-landlord-real-estate-investor/];and start this blog [https://www.wealthwelldone.com/purpose-of-life-create-wealth/]. To build a life you dream of living, first create a lifestyle [https://www.inc.com/gordon-tredgold/how-to-promote-a-culture-of-smart-risk-taking.html] that allows you to feel safe taking risks.  Second, improve your ability [https://www.success.com/article/top-of-mind-6-tips-for-smart-risk-taking] to determine which risks are smart for you to take, and then take them.  Now that I’ve explained why smart risks are an important ingredient to create wealth, let’s dive deeper into my risk checklist so I can show you how I target the right smart risks, and how I avoid stupid risks. MY RISK CHECKLIST: QUESTION #1:  IS THE RISK LEGAL? The first question I analyze when I am thinking about taking a new risk is: “Is this risk legal?”  I ask this question first, because I have learned that no matter how rich, powerful, or successful a risk can make me, going to jail because the risk is illegal is NEVER worth it for me!  If I realize right away that the risk I am pondering puts me in a dangerous situation on the wrong side of the law, I immediately turn it down.  Even if the risk seems like a golden opportunity where there’s virtually no chance I could get caught, I remind myself of the shame and embarrassment I would feel if I  was put in handcuffs because of it.  Ruining a reputation that takes a lifetime to establish is NEVER worth any payout, no matter how tempting or lucrative the risk may seem. In conclusion:  If the risk is legal, it’s a potentially smart risk, and I go onto the next question.  If it’s illegal, it’s a stupid risk and I run like hell. QUESTION #2:  IS THE RISK ETHICIAL? The second question I ask when evaluating a new opportunity, is: “Does the risk fit within my ethical standards?”  I am 37-years-old, and I have learned that even though my time alive seems long, it goes fast.  I want to spend as little time as possible worrying about the choices I am making.  So each time I encounter a risky decision I’m intrigued to take, I compare it to my values and ethics, and I ask myself, “Do I feel comfortable with the ethical ramifications of my actions and decision?”   If I feel comfortable with the ethical decisions I’ll be forced to make regarding the risk, then I move onto the next step in my risk checklist.  If I don’t feel comfortable with the ethical decisions, I swiftly move on and search for the next opportunity. In conclusion:  If I feel comfortable with the ethical decisions I’ll be forced to make, I deem it a potentially smart risk and go onto the next question.  If I feel uncomfortable with the ethical questions I encounter, I deem that life is too short to feel like a sub-standard human being, and I move on. QUESTION #3:  CAN I AFFORD TO TAKE THE RISK? Once I’ve determined that the risk is legal, and ethical, I start evaluating the financial impacts it may bring upon my life.  (If it is a risk that doesn’t have anything to do with my finances, such as:  Asking a girl out on a date when I was single (a romantic risk), or committing to run a marathon (a physical risk), I bypass this step altogether.) But since I am a guy who loves personal finance, financial investments, and building wealth, a lot of the risks I evaluate have something to do with money.  When evaluating a financial risk, I always ask myself this question:  “Can I afford if the risk turns sour, and I lose all the money I put into it?” Ultimately, I ask myself this very important question because even if I lose everything, I don’t want to hate the life I have to live.  Life is too short to hate any part of it.  So if I deem that the risk may destroy everything I’ve built up over the last decade, than I may deem it too expensive to take.  If I can’t afford losing, than I deem the risk is not worth taking. However, if decide that I will only be uncomfortable, frustrated, and discouraged for a short time if the risk goes sour, than I could deem the risk worth taking because I am young enough to be able to learn and bounce back from it.  But I have made the decision that no risk is worth losing everything and making me feel like I hate the life I am living. In conclusion:  If I can afford losing, than I deem the risk worth taking.  If I can’t afford losing, then I deem it a stupid risk and look for a smarter risk to take. QUESTION #4:  WILL I GET HURT? If a risk involves physical pain, I often evaluate, how much pain am I risking?  I can handle a little pain, but I can’t afford a serious injury.  For example, before I do a roofing project on a house I own, I evaluate is saving a few hundred bucks worth it if I fall and have to pay a $6,000 insurance deductible? Or if I am skiing in Colorado, and I see an awesome cliff line I would have loved to take in my younger years (and when my parents were paying for my health insurance), I evaluate if it’s a smart decision to make.   At my age, I am willing to sacrifice some comfort, for some pain, if it brings me the results I crave.  But I am no longer willing to risk a serious injury that could cost me tens-of-thousands-of-dollars in unnecessary medical expenses and weeks of loss of work. In conclusion:  If it’s just pain and comfort I am sacrificing, I determine it could be a smart risk to take.  But if I am risking a potentially serious injury, or death, I deem it a stupid risk and look for a smarter risk to take. QUESTION #5:  DO I WANT TO TAKE THE RISK? When evaluating an alluring risk, I always ask myself: “Am I contemplating taking this risk because I really want to take it?  Or am I doing it because I feel peer pressure from others, such as my parents, my bosses, my family or my friends?”  To build real wealth, it is vitally important that you only take the risks you want to take, to get the results you want to live, and then repeat those risks hundreds and thousands of times until you master the risks that will create your dreams.  Taking smart risks can be extremely motivating because you will build self-confidence and independence as you learn about yourself, and learn how to master these risks to create your dream life. However, on the flip side, there aren’t many more miserable feelings in life than feeling forced to take risks that other people want you to take.  Taking risks for other people can lead you into a nightmarish existence, because if they go sour, then you’re the one who has to pay the consequences, even though you weren’t the one who wanted to take the risk.  Before I take any risk, I ask myself:  “Do I want to do it?  Are the results important to me?  Am I willing to become an expert by learning through the uncomfortable process of trial and error?”  If I realize the risks are important to me, and I am willing to learn and grow by trying to turn a risk into a goldmine, then I take these risks. In conclusion: a risk that you want to take, may be the beginning of a new life you want to live.  However, a risk that you don’t want to take, may lead you into a life you hate, and living a life you hate to appease other people is one of the biggest mistakes a human being can make. Question #6:  Can I Reach my Purpose and Destiny if I Don’t Take the Risk? Finally, I evaluate the risk, and the reward I hope to get out of it.  I compare the risk and reward to my own mental position regarding the risk.  I ask myself:  “Why do I feel like it is a risk?  Why am I hesitant to take it?  Am I hesitant because of fear?”  If I am only afraid of the risk because of fear, and it passes all of the above checklist, I ask myself this question to challenge myself: “What goals in life can I achieve if I can will myself to the other side of this risk?” If I feel my purpose [https://www.wealthwelldone.com/purpose-of-life-create-wealth/] or destiny is on the other side of the risk, then I know it’s just fear holding me back, and unsubstantiated fear is often the enemy of living an extraordinary life.  If all the other steps above make the risk look like a smart risk, then I can realize it’s only fear that is holding me back.  If it’s only fear that is separating me from my dream life, than I realize part of my purpose in life is to overcome my fear and take the risk. I personally believe that achieving our purpose [https://www.wealthwelldone.com/achieving-your-dreams/] is the most valuable thing any of us can do in our life, and often our purpose is sitting on the other side of our fear.  Purpose is more valuable than money, because purpose can make you feel like you lived for something.  Money can only make you feel like you worked for something.  Enjoy taking risks.  Because once you find your trail of smart risks leading you toward your purpose in life, there isn’t a life that will make you feel wealthier than walking down that trail. Years ago, I was told some great advice from a very smart and successful man that has stuck with me.  He said:  “The doors of opportunity are always opening and closing in life.  You don’t need to walk through every door of opportunity.  You just need to walk through the doors of opportunity (the right risks) that are right for you.  Find your doors, take your risks, and then find yourself along the way.” Use this website to find your doors of opportunities.  Then have fun taking the smart risks that are right for you, so you can become who you’re supposed to be. In conclusion:  Embrace the fact that risks are the opportunities that will lead you to who you’re supposed to become.  Seek risks. Find risks. And then once you encounter risks, learn to logically evaluate each risk.  Maximize the smart risks you choose to take, and avoid the stupid risks.  Save your money along the way, and you will quickly find yourself on your path to wealth. STUFF WE LOVE: Personal Capital [https://fxo.co/6gtB]is a net-worth calculating tool that turns your finances into a puzzle that’s fun to solve.  It’s free and makes monitoring your money easy. Bluehost [https://www.bluehost.com/track/wealthwelldone/]is how we started this blog.  Launch yourself onto the internet.  Your friends are out there.  It’s an easy to start your blog today. Get posts to your inbox:Subscribe to our weekly newsletter and get VIP access to our hidden media page:Please enable JavaScript in your browser to complete this form.Email *WebsiteSubmit The post My Risk Checklist: How I Take Smart Risks [https://www.wealthwelldone.com/smart-risks-risk-checklist/] first appeared on Wealth Well Done [https://www.wealthwelldone.com].

Don’t be me this weekend.  Why?Because my frugal, wealth-building ways almost became a victim of my own pride, ego, and arrogance. For a moment, I almost let irresponsible feelings of vanity get the best of me, and I wanted to, as Dave Ramsey [https://www.daveramsey.com/] so eloquently puts it: “Buy things I don’t need, with money I don’t have, to impress people I don’t like.” This how it happened: My parents were unable to attend Memorial Day weekend at our family cabin, so the responsibility of getting their boat to the lake fell on me. [https://www.wealthwelldone.com/wp-content/uploads/2018/05/20180520_161140-300x225.jpg] To do this, my dad handed me his keys to his brand new truck on Friday, and his luxurious new truck became my car for the next few days.  I’d never driven a brand-new, expensive vehicle for an extended period of time before, so I didn’t know what I was getting into.  As I drove his truck around town, it’s shiny exterior, and computerized interior started to seep into my psyche.  I started to feel richer and more powerful than I really am because I was driving a car a few steps above my budget.  I felt people noticing me at gas stations and stop lights.  My prideful, egotistical awareness-of-self became even stronger when I got to the cabin and hooked his awesome boat to the back of the brand new truck and began to tow it down the road.  Now not only was I driving a brand new truck, but I was also towing a trailer with a boat on it that anyone would be envious to own on a hot and sunny summer weekend in Minnesota. [https://www.wealthwelldone.com/wp-content/uploads/2018/05/20180526_1119577036199567223509243-225x300.jpg] The feeling intensified as I drove the boat to the boat launch early on Saturday morning.  I could almost feel other people at the launch watching me as I stepped out of the truck, and got it ready to launch it.  I knew I was embodying the image of money and power as people noticed me at the boat launch.  I was under 40 years old, relatively handsome (I’m not ugly 🙂 ), and I was at least presenting the image that I was rich enough to be driving a brand new truck with an awesome boat attached to it. I felt the arrogance and vanity of someone who enjoys flaunting their wealth and money as I launched the boat.  I sized up all the other trucks and boats that were there, and beamed with pride that the rig I was driving was one of the newest, shiniest, and most expensive in the parking lot.  Since I’ve always driven cheap cars around, and lived more like aMillionaire Next Door [https://amzn.to/2LIbt4i]pursuing stealth wealth [https://www.physicianonfire.com/stealthwealth/], than a Debt Leverager [https://www.investopedia.com/terms/l/leverageratio.asp]always trying to finance tomorrow’s money to live a top-shelf life today, I had never really experienced the intoxicating feeling of looking so rich before. Before falling victim to my own vanity this past weekend, I had never really understood why people go into debt to purchase things they can’t afford.  But this weekend, I experienced how powerful a human being can feel when they try to appear to be rich, even if they don’t own any the luxuries they’re showing off.  I suddenly understood how even a very smart person could find them in a dangerously, over-leveraged [https://www.investopedia.com/terms/o/overleveraged.asp] situation.  Sometimes, I realized, extreme debt-acquisition is more about fueling the prideful, egocentric feeling that you create by making yourself appear smarter, richer, and more powerful than you really are because of the expensive things you own. I mean look at what happened to me this weekend:  I’m one of the most frugal, humble guys you could ever meet.  I’ve been able to build a $300K financial portfolio [https://www.wealthwelldone.com/best-investment-strategy-create-wealth/]in five years even though my wife and I have lived on a relatively average income. But suddenly, after only a couple of days of driving around a brand new truck and boat, I even caught myself getting sucked into the prideful feelings associated with being rich and powerful, and thinking, “Maybe I should get a truck like this for myself.“  And to be totally honest with you, I wasn’t thinking about getting one because I needed one. I was wanting one, because I liked the way it made me feel.I wanted to own a massively expensive liability [https://www.wealthwelldone.com/best-money-advice/] because it made it easier for me to flaunt my wealth, and therefor made it easier for me to feel smarter, richer, and more successful than the other people I was around. I am embarrassed to admit this, but it’s true.  That’s why the title of this post is: “Don’t Be Me This Weekend.”Thinking like this is not the way to build real wealth.  This mindset will lead to bankruptcy eventually.  Because at some point, anyone over-leveraged with debt, will encounter a financial market with a floor that will unexpectedly drop out from underneath them.  Once there is no longer enough money coming in to pay for all of these financed things, the over-leveraged person will lose everything. I recently read a quote from the book, Sapiens [https://amzn.to/2slM609], by Yuval Noah Harari.  In the book, the author wrote: “One of history’s few iron laws is that luxuries tend to become necessities and to spawn new obligations (to acquire them.)  Once people get used to a certain luxury, they take it for granted.  Then they begin to count on it.  Finally they reach a point where they can’t live without it.” After a weekend of driving around in a brand-new truck, I started slipping into the “luxury trap” perfectly described above.  I started to believe that I couldn’t live without a new truck of my own, and maybe, it was worth sacrificing some of my future wealth to acquire more of the prideful, egotistical feelings that made me feel good today. But I am enough of a philosopher to use My #1 Skill of Successful Investors [https://www.wealthwelldone.com/successful-investors-skills/]to look into the future and imagine if a brand new truck would really make me feel that much better in the long term.  I realized that even if I bought my own luxury vehicle, where would the addiction to the prideful feelings end?  Would I then crave a new McMansion [https://en.wikipedia.org/wiki/McMansion] to store my new car and boat in?  Would I then want designer sunglasses, and clothes, and brand new mountain bikes, and golf clubs to go with my house, car, and boat?  So that everywhere I went, I could feel the envy of people looking at me, and wanting to be me?  Even if they knew nothing about me, or how confused, empty, and lost I really felt about why I was buying all these things that I really didn’t need? Once I was able to play these scenarios out in my head, I realized I didn’t need these luxury items in my life.  I suddenly had a lot of empathy for people who get caught in this luxury trap and create a prison of debt [https://www.wealthwelldone.com/achieving-your-dreams/] for themselves that seems impossible to escape.  I understood it, because I was that person this last weekend.  I had got a taste of the powerful drug that is vanity, and I just wanted a little bit more, and a little bit more, and who knows how deep that rabbit hole would have gone if I had chosen to follow it. Luckily at the end of this weekend, I didn’t have the guilt, shame, or sickness of realizing I had taken out a big loan to buy things I don’t need, to impress people I don’t like.  I simply had to return the keys to my dad, and climb back into my inexpensive 2004 Toyota Camry with 210,000 miles on it.  I had to remind myself that I may not have a brand new truck, or boat, but I am planting the investment seeds [https://www.wealthwelldone.com/best-financial-investments-millionaire/] that will one day lead me to wealth beyond my wildest dreams. So in conclusion, if you want a life of financial freedom, and the ability to create the life in your dreams, NEVER, EVER, EVER think like I did this last weekend.  Buying expensive things won’t make you bigger, smarter, or more powerful than you already are. Have you ever made purchases, or possessed luxury items that made you feel like this?  How did you break out of the cycle of feeling like you need them to be happy? STUFF WE LOVE: Personal Capital [https://fxo.co/6gtB]is a net-worth calculating tool that turns your finances into a puzzle that’s fun to solve.  It’s free and makes monitoring your money easy. Bluehost [https://www.bluehost.com/track/wealthwelldone/]is how we started this blog.  Launch yourself onto the internet.  Your friends are out there.  It’s an easy to start your blog today. Get posts to your inbox:Subscribe to our weekly newsletter and get VIP access to our hidden media page:Please enable JavaScript in your browser to complete this form.Email *NameSubmit The post Don’t Be Me Last Weekend: Build Real-Wealth. Not Fake-Wealth. [https://www.wealthwelldone.com/build-real-wealth-not-fake-wealth/] first appeared on Wealth Well Done [https://www.wealthwelldone.com].

A friend shared some unique life and money advice as we talked this week.  Our conversation struck my mind as life-altering advice long after it was over.  He said, “A human being’s most important financial asset is the quality of their supply line.” I felt inspired to write a fiction story based on the wisdom he shared to illustrate this point. Here’s the story I wrote: “The Most Important Thing I Learned in the Vietnam War.” Jay watched as his father’s eyes drifted away from him. All morning he seemed to be bouncing between reality and the memories in his mind as they drove.  He whispered cryptic things to himself like: “Life is like war in a lot of ways. You’re either going to accomplish your mission, or you’re not. There’s not a lot of valuable middle ground in life.” It was strange seeing his father act like this. He knew his father had served in the Vietnam war, but he never talked about it growing up.  Today was different. When they got to the gun range where they were sighting in their rifles for the upcoming deer hunting season, Jay took his gun out of the truck and leaned it against the picnic table. It was his 20th birthday today. He wondered if this is why his father was acting strange.  He was now the same age as his father when he went to war. His father walked up beside him with his own gun and sat down. “There are two things I learned in the Vietnam war that totally changed my life. I want you to learn them today, so you can live a successful life without living through a war to learn these things.” His father exhaled.  “Do you smell that?” His asked. Jay smelled the air. He smelled the faint scent of dead leaves in the dry autumn air. “It’s fall.” His father said. “Summer is leaving. Change is the only thing you can count to happen to you in life.  There will be so much change you will encounter.  Smart people are always ready for change to come. Be ready for change.  Embrace it.  Prepare for it the best you can. Trust me, there will be events that will surprise you, and spook you. Things will change shape on you, even if you’re certain of them. The most successful people in the world are those who know how to adapt to change. Those are the people that did the best dealing with life in, and after, the war.” The afternoon sun was getting hot. Jay pulled his rifle out of the case. He took his sweatshirt off. A warm breeze blew through the valley. The leaves were changing into the red, brown, and yellow colors of fall. His father looked off at the target in the distance.  “Now I want to tell you the second most important lesson I learned in the Vietnam war.” His father opened his gun case, and pulled out his rifle.  He set it against his chin, and hugged it into his shoulder.  He pointed the gun barrel at the target 100 yards away. “Have you ever heard of the Ho Chi Mihn Trail?” Jay shook his head. “No. Never heard of it.” “The Ho Chi Mihn Trail was the supply line that the North Vietnamese used to sneak supplies through the jungle into South Vietnam to fight the war.  The Ho Chi Mihn trail taught me that every human being needs a supply line to stay alive.  If you cut off a human being from their supply line, they’ll naturally die because they’ll run out of food, water, and medicine. But if you allow humans to have an endless line of incoming supplies, human beings can fight to infinity.” “The only reason the tiny, poor country of Vietnam was able to win a war against a giant, rich nation like America was because we were never able to completely shut their supply line. I’ve always remembered that lesson.  I want to pass that bit of wisdom onto you.” His father sighted his rifle and shot. The explosion from the gun echoed through the hills and trees around them. His father continued: “The secret to being able to support yourself, even when life changes, is to always keep your supply lines of incoming resources open. All the great leaders, who fought all the wars in history, knew the same thing: An armies most important asset is their supply line of fresh resources.  Always think in creative ways to improve it. Grow it.  Never cut yourself off from it. The quality of your supply line will dictate how your life will go, and if you’ll win your own personal wars or not. That is the most important thing I learned in the Vietnam war.” He set his gun down, and looked at his son. “Think about it. Did you ever not have food, water, and shelter growing up?” Jay shook his head. “No.  I always had everything I needed.” His father continued:  “That’s because I always had a job.  I made sure that I had a salary that acted as our supply line to bring fresh resources into our family.  I then started side-businesses to make secondary supply lines in case I lost my primary job. I didn’t retire until I trusted my retirement income streams. When your supply lines are dependable, you can do anything you want in life. But if you lose your supply lines, you will lose whatever mission you are fighting for.” Jay looked at his father as he was deep in thought, and kept talking:  “I learned all of this during my time fighting in the Vietnam war. The Vietnamese never separated themselves from the Ho Chi Minh Trail that brought them fresh food, ammunition, and soldiers.  America would bomb it, and they’d rebuild it. We’d find it, and they’d move the trail.  The scariest thing for a leader in a war, is losing their supply line.  The same rules are true as you figure out life.” His father continued:  “Once I returned home from war, and I re-adjusted to American life, I realized this philosophy of always keeping your supply lines open, works in a financial sense too. To succeed with money, focus on establishing quality supply lines.  First get a job to create your first supply line. Then work on creating new businesses for secondary supply lines.  But never, ever cut yourself off from an established supply line until you have a new one in place. The supply lines you build are the energy sources that will keep you fighting toward your dreams no matter what challenges you face.  That is my advice to you.” READ ON: MY BEST MONEY ADVICE [https://www.wealthwelldone.com/best-money-advice/] STUFF WE LOVE: Personal Capital [https://fxo.co/6gtB]is a net-worth calculating tool that turns your finances into a puzzle that’s fun to solve.  It’s free and makes monitoring your money easy. Bluehost [https://www.bluehost.com/track/wealthwelldone/]is how we started this blog.  Launch yourself onto the internet.  Your friends are out there.  It’s an easy to start your blog today. Get posts to your inbox:Subscribe to our weekly newsletter and get VIP access to our hidden media page:Please enable JavaScript in your browser to complete this form.Email *CommentSubmit The post The Most Vital Financial Asset In Life: Your Supply Line [https://www.wealthwelldone.com/most-vital-financial-asset-in-life-supply-line/] first appeared on Wealth Well Done [https://www.wealthwelldone.com].

My investment philosophy exploded like a string of firecrackers in my brain-cells recently as I was exploring the knowledge in my mind.  I realized my investment philosophy was full of thoughts I wanted to think about more.  As I dug deeper into these thoughts, I asked myself: “What does my mental portfolio look like?” As I explored the idea of what’s inside my “mental portfolio” I discovered that I prioritize philosophical ideas over financial ideas. 90% of my mental portfolio is based in philosophy, and only 10% in strategic financial concepts.  I found it fascinating that only 10% of my brain thinks about numbers, and yet, I have been able to succeed with money and build a powerful amount of wealth [https://www.wealthwelldone.com/best-investment-strategy-create-wealth/] in a short period of time even though money is mostly a numbers game. Personally, I don’t worship money.  It’s probably why I don’t think about numbers.  But I do worship philosophy. Learning and improving myself are the ideas I think about all the time.  The financial concepts I do understand are pretty basic, but I am learning that you only need to know the basics of mathematics to succeed with money.  This discovery led me to ask myself:“So if I’m not naturally great with numbers, how did I accomplish all my money goals because financial transactions are based on knowing your numbers?” What I learned is that having the right philosophy in your brain (for me at least) is more important that being brilliant with financial calculations to build wealth.  I am writing this post to give hope to those people who love philosophy, but don’t believe they have the natural number skills to be good with money.  Just because you’re not a mathematical wizard, doesn’t mean you can’t use the skills you do have, such as philosophy, to become great with your finances. Let’s do a deep dive into my mental portfolio, which I have illustrated into a creative pie-chart below.  This pie-chat shows how I categorize and structure the wisdom I retain in my brain: investment philosophy [https://www.wealthwelldone.com/wp-content/uploads/2018/03/My-Mental-Portfolio_-768x768.png] This chart shows you that you don’t need a ton of super-deep economic, mathematical, and financial knowledge to succeed with money.  If you’re using a lack of talent with numbers as an excuse as to why you can’t get ahead, I am here to tell you to stop telling these lies to yourself.  Believe that you can do it.  If becoming a math nerd that analyzes financial spreadsheets all day sounds fascinating to you, then more power to you and become that person.  Building wealth is the adventure to become whoever you want to be. But if you’re like me, and don’t really care about mathematics or the numerical side of finance, I want this chart showing my mental portfolio to inspire you.  You don’t have to be a math-pro to succeed with your money.  You just need to know a few basic economic and mathematical concepts to guide you in the right direction.  This revelation is kind of freeing to me, because it shows me that you don’t have to become someone you’re not to master money. You can be a philosophical person, and build just as much wealth, as someone who studied finance in college and crunches numbers all day. Don’t believe me?  Look at the chart again.  As you can see, 90% of the thoughts in my brain are philosophically based.  They’re basic concepts on how to be a good human being, and how to live a fulfilling life, that anyone can learn.  Only 10% of the thoughts in my brain have roots into hard financial numbers.  If I can build a net-worth of $250,000 in only five years, with only 10% of my brain devoted to mastering financial numbers, then you can too, if you adapt the right philosophies into your life. I believe self-awareness is one of my strengths, so I’ve learned how to use that strength to help me with my finances.  Personally, I am just naturally better at comprehending philosophical ideas, over mathematical ideas, so I focus my attention on finding the best philosophical ideas the world has to offer.  Then, I use these ideas to transform my life into the life I WANT to live.  Since I feel the most confident engaging in philosophical ideas (90% of my brain), I learned I really only needed 10% of my brain devoted to financial knowledge to become great at saving money, investing money, and ultimately building wealth. Let’s dive into the different categories that make up my mental portfolio, so I can share examples of the philosophies that I consider my greatest assets: The First 50% of My Mental Portfolio:  Philosophy on Being a Good Person. [https://www.wealthwelldone.com/wp-content/uploads/2018/03/Good-Human-Being-Philosophy_-768x768.png]A surprising fact about me (considering that I run a financial blog) is that 50% of my brain is based around the philosophies that will help me become a good, productive, likable, and unique human being.  For example, here are a few examples to show you what my “good human being” philosophies look like: Don’t do everything yourself.  You can’t.  Think about others.  Help others and they will help you.  Helping is the action that will lead you and others to wealth. Don’t waste time.  One day your time alive will be over, and you’ll regret every memory you have of wasting time [https://www.wealthwelldone.com/stop-wasting-your-time/]. Failure is a necessary part of growing.  If you succeeded at everything you did, you’d never learn anything, and learning is the key to unlock the doors of wealth. Failure [https://www.wealthwelldone.com/overcoming-fear-of-failure/] is the greatest education.  Become educated through trying and failing, and then use that education to succeed and create wealth. Real friends don’t expect you to be perfect. Real friends [https://www.wealthwelldone.com/best-investment-awesome-friends/] are imperfect people who want to strive toward perfection with you. Money doesn’t create your self-worth. The quality of a human’s ideas, and how they execute them, will create your sense of self-worth. Don’t live the life other people want you to live.  The only voice that can tell you what to do is God’s [https://www.wealthwelldone.com/building-relationship-god-budgeting/].  Live the life your soul craves to live. Look at the above ideas and philosophies: 50% of my mental portfolio has nothing to do with money!  But if you look into each of those philosophical examples, you’ll see that if executed correctly, these philosophies will naturally lead a person to opportunities to create wealth. For example, when you help others, you are creating value that someone may pay you for eventually.  When you focus on maximizing time, rather than wasting it, you will naturally find yourself creating things and experiences with your time that have value to others.  You can then sell those things for money to build wealth.  When you’re not afraid of failing, you can take risks that may allow you to succeed on a massive scale.  When you make real friends, you will find yourself joining an army of motivated human beings who want to help each other succeed.  Wealth is often the result of friends helping each other succeed. I truly believe it’s the art of philosophy, not mathematics, that leads human beings to wealth and fulfillment.Philosophy is an energy source in the mind that can guide, motivate, and lead any human being to the life they dream about.  The right philosophies in your mind can help you overcome any obstacle in your way.  Financial and numerical knowledge are just tools that can help you create financial margin and execute the philosophies in your brain. The second 40% of my brain is just more philosophy that I use to help make financial decisions. For example, here is how a few basic philosophical concepts help me improve my finances: [https://www.wealthwelldone.com/wp-content/uploads/2018/03/Financial-Decision-Philosophy_-768x768.png]Whoever saves more money than they spend, will have more money than they need. Be prepared for rainy days and long winters.  The sun won’t shine every day. Investing is the act of building a money printing machine. Some of the best things to experience in life don’t cost any money. You’ll sleep better at night with an emergency fund.  You’ll sleep even better when you have so much money you no longer have to think about money. Buy on credit and take out loans if you want to make other people rich with your money.  Avoid credit if you want to make yourself rich with your money. A penny saved is a penny earned, and a million dollars is just a bunch of pennies that someone earned and saved over a long period of time. It’s kind of a cool exercise to evaluate your own mental portfolio.  What are the thoughts inside your brain?  How are they structured?  What does your mental portfolio look like?  Your mental portfolio is extremely important to understand because everything you are, and everything that happens to you, begins with the thoughts in your mind. The Third, and Final 10% of my mental portfolio is based in mathematical concepts that help me analyze economic and financial opportunities. Below are some of the mathematical concepts that have helped me build wealth.  If you’re not naturally good with numbers like me, don’t worry.  You don’t have to be a numbers wizard to build wealth.  After all, numbers only make up 10% of my mental portfolio, and I’ve done just fine.  You can do the same. investment philosophy [https://www.wealthwelldone.com/wp-content/uploads/2018/03/Numerical-Concepts_-768x644.png] Compound interest, as Einstein once said, is the 7th wonder of the world.  Make sure to understand and incorporate this “wonder of the world” into your own financial life to win with money.  Here’s a riddle to show you how powerful compound interest can be:  Lilly pads on a pond double every day, and after 100 days, they will completely cover a pond.  How many days will it take to completely cover the pond with lily pads if it takes 99 days to cover the first half of the pond?  Answer:  It will only take one day to accomplish the same outcome that took the previous 99 days !  Always be thinking about ways to utilize compound interest with your finances.  This is how you double your money into massive sums over long periods of time without having to do any work yourself! Money invested in the stock market has historically doubled every 9 years.  Realize $10,000 today has the potential to be MUCH more if it’s invested in a safe and diversified way. (Index funds!) [https://www.wealthwelldone.com/best-financial-investments-millionaire/] $10,000, if invested, is really closer to $100,000 after it doubles for a few decades.  If you invest a $10,000-$20,0000 sums every year, and those sums just keep doubling every year, that’s probably a couple million dollars after a few decades!!!  A couple of million dollars in my bank account sounds way more exciting to me than a new car every few years. Real-estate is great for portfolio diversification, and awesome cash-flow opportunities.  If you’re thinking about buying real-estate, make sure you’re getting those two things.  If you’re not getting those things, you could just be buying a huge headache for yourself. If you’re able to save $1 for every $5 you make, then you can save $6 for every $10 you make.  To become wealthy, find ways to increase your income, NOT your spending.   Don’t make the mistake of raising your spending habits just because your income rises.  The only good reason to spend more money is if it’s going to make you happier, healthier, or teach you something.  Don’t just spend more because you have more. 7% returns on Investment are better than 0% returns.  But 20% returns are better than 7% returns.  Gleefully seek the biggest percentage of returns that you can find. Let’s say two opportunities to have fun present themselves to you:  One costs $20, and the other costs $100.  Do the things that cost you $20 most of the time, and only do the $100 things on special occasions.  Save and invest the rest into your wealth-building fund to become financially free. Debt interest is bad no matter what it is.  However, if you’re going to take on debt, then at least try to make money on the debt you’re taking on.  Here’s an example on how to make money on debt:  I have an investment property mortgage that makes me a 20% return per year, and I only paid 4.75% per year to borrow that money.  I get to keep that 15.25% profit using other people’s money. $5 + $5 = $10 is a good and healthy equation.  Addition signs are awesome to see in personal finance!  It’s the subtracting numbers you have to be afraid of.  When you see subtraction signs (-) stealing money from your net-worth, find ways to get those subtraction signs out of your life so you can keep that money!  The more addition (+) signs the better! In conclusion, as you can see above, it’s pretty simple to become wealthy.  It’s not rocket science.  You just have to have the right philosophies in your mental portfolio.  Load your mind up with the best philosophies, and then use a few basic numerical concepts to help you make the right financial decisions.  Finally, below is the mental portfolio that works for me:  90% philosophy, and only 10% numbers. investing philosophy [https://www.wealthwelldone.com/wp-content/uploads/2018/03/My-Mental-Portfolio_-768x768.png] So what does your mental portfolio look like? STUFF WE LOVE: Personal Capital [https://fxo.co/6gtB]is a net-worth calculating tool that turns your finances into a puzzle that’s fun to solve.  It’s free and makes monitoring your money easy. Bluehost [https://www.bluehost.com/track/wealthwelldone/]is how we started this blog.  Launch yourself onto the internet.  Your friends are out there.  It’s an easy to start your blog today. Get posts to your inbox:Subscribe to our weekly newsletter and get VIP access to our hidden media page:Please enable JavaScript in your browser to complete this form.Email *MessageSubmit The post My Mental Portfolio And Investment Philosophy [https://www.wealthwelldone.com/investment-philosophy-abundance-mindset-mental-portfolio/] first appeared on Wealth Well Done [https://www.wealthwelldone.com].