“The way you behave about money today and tomorrow determines how you’re going to live for the next 50 years.” From The Habit of Wealth by Mark Tier
Last July 29 I attended an interactive workshop for the improvement of self-wealth to attain our life’s perspectives when we reached our retirement age. The Habit of Wealth workshop is presented by Australian author Mark Tier (The Winning Investment Habits of Warren Buffet and George Soros) and teacher Raquel Narca. The 3-hour workshop gathered young professionals, moms/dads and kids aged mostly 10 years old. Tier’s concept of the habit of wealth is to cultivate one’s attitude in managing money, having a discipline the way we spend according to our present lifestyle, saving money for retirement and most of all enjoying life without having to worry what’s left in our wallets.
Money is life (…the truth about money)
Money is just a tool; some people think money is evil but the love of money is evil. Given the fact that money is essential to life survival, we practically used money to exchange whether for wages, personal expense, businesses, leisure, properties, assets, resources, financial gain and so on. That’s how everyone perceive money, so important to sustain our very existence. As realistic the way Tier comprehend money — “I’ve been rich and I’d been poor. And I can tell you that while money won’t buy you happiness, lack of money will sure get you unhappiness.”
What are the habits of wealth?
Thus, it is certain to attend the workshop proper to experience this life-changing course shared my Mark Tier.
Self-Evaluation: Your Money Personality
“Are you a spender, a keeper, or a maker?” Figure out your money personality
Tier explained The Money Flow of the Poor, it basically includes financial terms: income vs. expenditure, assets and liabilities. A typical employee with basic salary pays most of his necessities such utility bills, groceries, house rent and set aside his food and transportation allowance for the coming work weeks until his next payday. When payday comes his expenditure rises to meet income, he merely spent everything? The state of his assets and liabilities are both in ZERO category.
The Money Flow of the Middle Class
The same nature of expenditures — settle the living cost and bills incurred, the difference with this type of spender is he have liabilities to shell out. The situation of his expenditures befalls under basic living cost and his liabilities which includes: mortgage, car payments, furniture, credit cards, personal loans, etc. When payday comes, his debt rises to meet income. The state of his assets: none and liabilities: debts to pay.
The Money Flow of the Rich
Again, the same nature of expenses for living cost but other than that expenses, he set aside percentage of his income to turn into asset building. These are investment like real estate, stocks, bonds, bank accounts, businesses, etc. When payday comes, his assets rises to meet income. The state of his assets: interest-earning and liabilities: none.
TAKE-AWAY: The big lesson
A spender spends all income with no debts
A broke spends all income and borrows money to spend
A keeper spends some income, save most of income, with no investments but can be a maker in the future
A maker wisely spends income, has investments, and saves money for future income
“If you want to change your money behavior, you have to adapt the mentality of the rich about money.” How? “The rich’s mentality about money is future-oriented. They set aside part of their income which goes to building assets.” A two-way process: “Assets produce income; income produces more assets.”
The rule of the thumb I personally learned from these workshop is the part about Li Ka-shing’s habit. (Li Ka-shing is Hong Kong’s richest man). He recommends to divide your income into 5 parts:
30% for living expenses
20% to make friends
15% to learn
10% to reward yourself
25% to invest
Full details are disclosed, attending the next Habit of Wealth may work for you as well.
Henry Sy, Warren Buffet, and Li Ka-shing all started with nothing and they did start thinking how to be rich at a very young age Sy was 12 years old, Buffet was 6 and Ka-shing was 15. If you’re a parent like me, we need to educate our sons and daughters (while they are young) how to achieve financial freedom, only then they will come to realization that “being WEALTHY is inevitable.” Start by saving up. Be committed. Invest a certain amount every month. If you want to learn tips about retirement savings or personal savings that will work both for you and your children patterned under The Habit of Wealth, just email me. I’m currently working on my family’s 5% Habit of Wealth, a separate kick-start financial plan for me and my kid. I started it lust last July 2017 though we already have an existing “Pay myself first” scheme but with the learnings I derived from the habit of wealth I’m personally fixated to complete the “10% to reward yourself” affirmation. I am visualizing the effect of this long-term goal; I must say is doable for us (even to you if you really want to have that positive cashflow.)
There are elaborate ways to achieve financial freedom, and there also many things that could hinder you from practicing the habit of wealth. One is the emotional hang-ups, resist the money drains that are keeping you poor (without offending anyone important in your life).
3 Mini-habits to Adopt in Building your Own Foundation of Wealth
1. Set limits – set a limit when you give something, set aside money as gifts or for charities. Set aside money as assistance that will not ruined your budget
2. Learn to say NO to people who borrow money from you
3. Do not brag – you have to be humble, don’t brag even to your parents, remember you need to save 10% to build your state
To know how these habits works and full details of it, I suggest you invest in Learnium Events’ The Habit of Wealth workshop.
DeiVille.com, created by Green Dei (Daryll Villena)
Write us at darylldial(@)gmail(dot)com for tips on entrepreneurship, consumerism, parenting, digital branding, women talk, health talk, Pinoy travels and Manila lifestyle.
If you find this post helpful, informative or entertaining, feel free to SHARE it.
Get instant updates from deiville.com on: Facebook | Twitter | Instagram | Google + | Pinterest
I’d love to know what you think about this post. Feel free to leave your comment.
I do reply to each of your messages or questions so please come back if you’ve left one.
Disclosure: This is a sponsored post for Learnium Events and DeiVille is in any way compensated for review and sharing this post. Regardless, all opinions are my own; may or may not differ from yours. I only recommend, discuss or introduce my reader to products/services/businesses I would or do use myself.
A social media practitioner and digital branding specialist with an alter ego of “Green Dei” in the digital arena, she curates page for entrepreneurship, creatives and community. Daryll Villena is the Chief Editor and creator of DeiVille, Foodamn Philippines, Public Toilet Philippines, and Storytelling Philippines. Connect with her on Instagram via @greendei and on Twitter @greendei for useful tips on digital branding, entrepreneurship, consumerism, parenting, health talk, women talk, Pinoy travels and Manila lifestyle. For collaborations and proposals email her at deiville.com(@)gmail(dot)com