hey everyone what's up have you ever wondered why some people work hard and get rich easily While others are barely getting by struggling with bills and more bills and why is it that no one learned about money in school the answers might surprise you who remembers Mike Tyson a boxing Legend the guy was rolling in money during his career it's estimated that he earned over $300 million but in 2003 he filed for bankruptcy with a debt of $30 million the answer is simple money is not like water that you can control it's a good employee
but a terrible boss and that's exactly what we're going to learn today time to take a look at your financial life how's your relationship with money going when you get that hard-earned money how long does it stay in your account the truth is we learn to earn money and spend it all in the blink of an but the recipe for Success should be different earn invest save and only then spend wisely often when we're feeling the pressure we fall into the Trap of those who promise easy and fast money like those absurd internet schemes but
be careful those promises are as fake as a $3 bill and can lead you straight into a hole friends we need to change the way we think about money the problem is not not just the lack of financial education but also how our brains work our ideas and beliefs about money can hold us back and prevent us from achieving that much desired Financial Freedom having a soccer player's salary is useless if you spend like a king what really matters is how you relate to spending we have to break this vicious cycle of earning and spending
and learn to manage money in a healthier way like a balanced diet have you ever wondered why we spend years and years in school learning a lot of things but when it comes to money we leave there more lost than a dog on moving day the answer is more complicated than Grandma's recipe and there are a lot of factors one of them is that in the past School worked like a factory that prepared us to be employees not to be bosses or investors and there's also this idea that talking about money is rude like a
topic to only discuss in private but the truth is that understanding Finance is essential for adult life and should be taught from a young age can you imagine if from a young age we learned about family budgets Investments compound interest and other important things about money surely we would know how to manage our money much more responsibly right and this lack of financial education doesn't stop at school no it spreads through Society like gossip in a small town becoming a topic of conversation among neighbors and ending up affecting everyone many parents also didn't have the
opportunity to learn about finances and end up unintentionally passing on bad habits to their children the media also adds fuel to the fire encouraging unrestrained consumption debt and the search for Magic solutions to financial problems it's like trying to take a shortcut in a marathon but in the end the bill always comes due this lack of information and the misconceptions about money create the perfect scenario for people to make disastrous financial decisions perpetuating the cycle of debt and financial difficulties like a dance that no one can [Music] escape to have a fairer and more prosperous
Society we need to break this vicious cycle Financial education is the key to empowering people so so they can take control of their own money and build a more secure future we need to demystify this topic of finance and make it accessible to everyone it is through education that we learn to manage money intelligently to make more informed decisions and to make our dreams a reality the road to Financial Freedom Begins by Opening Our Eyes by seeking knowledge about finances we are taking the first step to towards having a healthier relationship with money and building
a more prosperous future now that we've seen how important it is to understand Finance let's talk about how we manage our money every day to begin we need to understand how money Moves In Our Lives just like a river think about all the times money has come in and out of your bank account for most people money comes in through work through their salary right and where does it go bills to pay groceries are weekend barbecue a vacation trip this Dynamic of money coming in and going out is like a relationship a lot of times
we avoid the topic of money because of fear anxiety or just plain laziness it's like the saying goes out of sight out of mind but when it comes to finances ignoring the problem only makes it worse it's like a snowball the more you ignore it the bigger it gets the first step to taking control of your money is to face your fears open your bank statements write down your expenses and figure out where your money is going facing reality can be a little scary at first but it's the only way to start changing your financial
Story one of the biggest secrets to reaching Financial Freedom is living on less than you earn this means spending less than you make and investing the difference it seems obvious but a lot of people live paycheck to paycheck spending everything and going into debt to afford a lifestyle they can't afford it's like the saying goes Beggars can't be choosers living with less doesn't mean living in misery you don't have to be a cheap skate to have a healthy Financial life it's about making smart choices about how you spend your money it's about being a good
Steward as they say it's about prioritizing what you really need and letting go of luxuries it's about separating the wheat from the the chaff when it comes to spending by controlling your spending impulses you'll have more money to invest in your future create an emergency fund and make your dreams a reality in the end who doesn't want to say goodbye to financial difficulties and achieve their [Music] dreams a lot of people are stuck in the rat race working hard to make money but they spend everything they earn and go into debt it's a vicious cycle
That Never Ends our consumer Society keeps telling us that we need to have more and more bu by by but true wealth lies in having Freedom autonomy being able to make your own choices break the cycle of rampant consumerism think carefully before you buy anything do you really need it money is a powerful tool let's dive a little deeper into our conversation about money we often think of money as something we only use to buy things like a coupon but is that all there is to it I don't think so money is much more than
that in reality money is a way of expressing value when you buy something you're exchanging money for something you believe has the same value right think about your job for example you use your time your energy your skills that is you dedicate yourself to generating value for the company or for your client in return you receive a salary which is nothing more than the representation of the value of your work understanding this relationship between money and value is key to changing the way we deal with our finances it's not just about accumulating money but about
generating value and being rewarded for it does that make sense to better understand our relationship with money let's imagine a balance scale on one side we we put everything we produce the value we generate with our work with our investments with our businesses it's like our sweat our energy transformed into something valuable on the other side of the scale we put everything we consume everything we spend to maintain our lifestyle from basic needs like rice and beans to the little luxuries we give ourselves from time to time the result of this calculation what's left over
after paying all our bills and expenses is our net worth it's our reserve for the future our financial security our true wealth it's like our little savings that we grow bit by bit if you're always spending more than you earn it's like your scale is always tip to the wrong side it's a warning sign that your relationship with money needs attention but if you seek to produce more value than you consume your net worth will grow creating a positive cycle of prosperity it's like planting a seed and watching it Bloom yielding fruits to harvest in
the future a lot of people think that life's problems boil down to just making more money ah if I only earn $10,000 a month my life would be perfect but the truth is the problem isn't just how much you earn but how you manage that money I know people who earn really well but they're always in the red living beyond their means unable to build a secure future the problem isn't money itself but our relationship with it if you don't know how to manage the money you earn today earning more won't do you any good
you'll keep making the same mistakes spending it all and drowning in debt it's like the saying goes Easy Come Easy Go real change comes when you decide to take control of your finances regardless of how much you earn you you need to have an abundance mindset focused on creating value and building a prosperous future like someone who SWS and reaps the fruits of their labor one of the hardest things to face when it comes to money is our own spending habits we live in a society that encourages us to spend without control that makes us
chase the latest thing as if it were the solution to all our problems we are bombarded with ads that make us want things we don't need as if the grass were always greener on the other side we have to be careful not to fall into that trap to not end up buying a pig in a poke ask yourself do I really need this is this going to bring me real happiness or is it just a passing whim remember happiness is in living a life with purpose in building strong relationships and in finding our own path
not in accumulating material Goods to reach true Financial Freedom we need to go beyond just consuming we need to change our mindset and start seeing ourselves as creators of value instead of just trading our time for money at a traditional job we can look for ways to bring value to the world through our talents skills and passions this can be done in many ways starting a business creating our own product or service sharing our knowledge through online courses producing great online content the possibilities are endless the important thing is to find our own way to
generate value and make a positive impact on the world around us and by doing so money becomes a natural consequence of our work and our contribution to society we've arrived at the key point of our adventure time to roll up our sleeves and put everything we've learned into action the first step to mastering your finances is to have a plan a guide in other words a budget a lot of people get scared just hearing the word budget thinking it means hardship and missing out on things but trust me a good budget is the secret to
achieving your dreams and having more freedom to enjoy life think of a budget like a map that guides you toward your dreams like using a GPS to get to a family Barbecue it helps you set priorities make smart decisions about how you spend your money and avoid debt in other words staying out of the red with a budget you stop being a ship lost at sea with your finances and take control of your money steering it towards what really matters to you like making that dream trip to the beach a reality or even buying the
house you've always wanted before we start making a budget we need to understand where your money is going right now it's like they say to get to know someone you need to start at their home how can you control something you don't even know this might seem boring at first first but it's super important to see where your money's going and find ways to save there are a bunch of tools that can help you with this you can use a money management app a spreadsheet or even a good old-fashioned notebook the important thing is to
write down all of your expenses from the smallest ones like your coffee in the morning to the biggest ones like your rent or car payment now that you know where your money is going we can start organizing your finances as simple rule that really works is the 503020 rule it's like a pie but instead of slices we divide it into money this rule divides your paycheck after paying all those boring bills into three categories 50% for what you need 30% for what you want and 20% for reaching your dreams needs 50% are those things you
can't live without paying rent buying groceries putting gas in the car going to the doctor and of course investing in education wants 30% are your nice to haves those good things in life dinner with friends that dream trip some shopping going to the movies or a concert and financial goals 20% are like saving money to make your dreams come true investing having an emergency fund paying off debt debts and securing a peaceful future now that we have a budget it's time to take a closer look at each category and see where we can cut back
to boost your finances remember every little bit helps let's start with your needs can you lower your rent or negotiate your mortgage how about saving on your electricity water or gas bill that mobile phone plan do you really use everything it offers now let's move on to your once do you really need all those streaming subscriptions how about cutting back on eating out or going to the movies and those impulse purchases can you control them the goal isn't to become a Hermit right it's about making smart decisions with your money prioritize what truly makes you
happy and cut back on the rest without Mercy with your budget set and your spending under control it's time to build a real safety net for your finances an emergency fund think of an emergency fund as insurance for those unexpected events that come out of nowhere like losing your job having a health issue or any other situation that could turn your finances upside down ideally your emergency fund should be enough to cover 3 to six months of your living expenses taking into account your basic needs with this fund you'll have much more peace of mind
to face face any problem without going into debt or compromising your long-term plans it's like having a financial cushion to give you that security in the most difficult times let's dive into the mind of a shopper why do we buy the things we buy where does this urge to shop come from the answer goes beyond just the basics the things we really need it's a mix of factors it's psychology social influence and emotions all rolled into one advertising oh it's clever it plays on our desires and insecurities you know how it is right buying something
new releases dopamine that famous feel-good hormone the one that makes us happy so think about it reflect on your spending habits be a conscious consumer imagine that hamster running on its wheel it runs and runs and runs but it doesn't get anywhere it's the honic treadmill have you ever heard of it we get more yes but the happiness is fleeting right we get used to it too quickly in a short time we already want more and more and more we need to consume more and more to have the same feeling of satisfaction it's like we're
never satisfied you know and this incessant search this desire That Never Ends can end up trapping Us in an endless cycle in today's world with social media showing us everything everything we're bombarded with pictures of perfect lives and lots of spending it's normal to compare ourselves and fall into the Trap of thinking we're falling behind this social comparison can be poisonous to our wallets in the quest to have the same lifestyle as others we go into debt and live beyond our means social media my friends only shows the tip of the iceberg true happiness is
in living an authentic life according to what truly matters to you now that we've explored the psychological aspects of consumption how can we escape this trap and build a healthier relationship with money and buying things the key is to find sources of happiness and fulfillment that go beyond owning material possessions that go beyond having that house of your own that new car start by questioning your values and priorities what is really important to you what truly makes you happy is it buying the latest cell phone or creating Unforgettable memories with those you love is it
spending time with loved ones connecting with nature pursuing a hobby contributing to society instead of looking for happiness in shopping malls look for it in meaningful experiences in genuine relationships and in activities that bring you purpose and Lasting satisfaction like those Sunday barbecues with the family remember true wealth is not about how much you own own but how you live it's not about having a lot of money in the bank but about having a life rich in experiences in love in inner peace choose to live with intention presence and gratitude valuing what truly matters in
life appreciate the simple things the special moments and the people who make you happy I hope you've learned some valuable tips to transform your relationship with money we've seen how a lack of financial education can lead us to a dead end of debt like owing money on everything you own it's a total bummer but we also discovered that knowledge is the key to escaping this and building a more prosperous and abundant future like winning the lottery you know but without needing luck throughout the video we've unveiled the mysteries of money like a detective solving a
case we learned to control our spending impulses no more buying every little thing that catches our eye to plan our budget to invest intelligently like a chess player thinking about every move and to build a wealthy mindset thinking big like a really successful business person remember money is a powerful tool that can make your dreams come true and help you reach your goals it's like having a magic wand but one you have to use carefully but for that it's necessary to take control of your finances and use this tool wisely and and responsibly because no
one wants to end up like Scrooge McDuck swimming in money but unable to spend it right the road to Financial Freedom isn't a short Sprint it's a marathon there will be bumps in the road challenges to overcome and moments of learning but trust me the reward is worth it with each step we take towards Financial awareness we become more free more independent and more capable of building the life we've always dreamed of like making the dream of owning a home a reality you know Remember You Are Not Alone on this journey seek knowledge for example
watching this video is already a great start talk to other people about their experiences support each other and celebrate every achievement along the way no matter how small the road to Financial Freedom is a path of self-discovery discipline and persistence just like a flaming Go game at the Marana but above all it is a journey of empowerment of personal fulfillment and of building a more prosperous and abundant future for you and your family and to give you a boost on this journey I've prepared a small list of some resources that have helped me a lot
and that can be useful for you too starting with books Robert kosaki George clayon T harika now speaking of tools Financial control apps like mint yrb Etc budget spreadsheets financial calculators and we can't forget about community's blogs and channels about personal finance online discussion groups courses and workshops but remember Financial education is like the Waters of a river it's always moving always be open to learning new things to seeking New Perspectives and to improving your financial management skills before we finish I want to leave you with an important message money is only one part of
life it's important yes but it's not everything don't let the pursuit of material possessions distance you from what really matters your values your relationships your health your happiness and your purpose in life use money as a tool to build the life you've always dreamed of a life rich in experiences in love in purpose and in achievements that go beyond the material remember true wealth is in living a full meaningful life and in accordance with your values money is just a means to achieve this goal you who have watched this video Until Now comment like this
money doesn't buy happiness just comment this money doesn't buy happiness when I see this comment I'll give you a little heart because I know you were persistent and stayed until the end of the video since money doesn't by happiness then give me yours and be happy bye and see you next time
