Money Isn't A One Trick PonysteemCreated with Sketch.

in money •  last month 

Hey Jessinvestors

When we speak about global finance, one topic always comes up, and that's the 1%. I've talked about how the 1% have rigged the system in their favour to keep getting more productive, but they are also free to do so as there is very little resistance from the 99%. We have become complacent and let them move the goalposts without saying anything, and we accept that we cannot make changes, but we can, through financial education.

One of the reasons that there is a 1% and 99% is because 99% of us treat money like a one-trick pony and only use it for one method and that is spending. We spend money as soon as it gets into our accounts, we slave all month and think nothing of throwing a month's wages away and giving it to various service providers without a moments notice.

This endless pursuit for things is in the 1% favour not in your favour. So if you act like the 99% how can you expect to transition into the 1%?

Image source: - quotehd.com

Money is a tool

And you're not using it for all the features it provides. Firstly time is money, if your capable of trading your time for money you should have a steady stream of income, this is a great place to get started. As you trade your time for income, you need to ensure your time costs more as you continue to trade it for income.

As your skills improve and value generation improves, you need to be commanding more for your time. If you cannot do that in your career, then its time to augment it by spending your time generating a side income however you choose to do so is up to you, the sky is the limit.

Investing

In a world of fiat money, you are continually losing purchasing power; capital depreciates over time just like your car, which is why it is best to safeguard what you earn in a basket of assets. You should be looking at bonds, stocks, cryptocurrency, precious metals, pension funds and foreign currency to spread your risk and create various small income streams.

I own a few stocks in local companies; I've got several pension schemes and bonds as well as crypto and holding on to a basket of foreign fiat since my local fiat is pretty rubbish.

Arbitrage

Next thing you should look at is arbitrage if you can find a cheaper way of doing something opt for it. If you can trade something, you have for more than you paid for it do it. As you continue to purchase various assets, you now have more purchasing power in the market and can take advantage of multiple swings to earn more over time.

Saving

Pay yourself first; I can't stress this one enough. If you work for your money pay yourself first put it into a savings instrument that gives you a steady income above so-called inflation and rewards yourself that way instead of rewarding yourself by giving your money to someone else.

Opportunity costs

Saving money brings with it opportunity costs, having a significant bit of liquid capital laying around can be of great help when deals fall into your lap. Someone might pass away or divorce, and you can pick up their home or car for a low price to resell for example, but you wouldn't have the confidence to do that if you didn't have capital. Saving capital helps you take advantage of these various opportunity costs and build a sound financial future.

Have your say

What do you good people of steem think? Do you have any extra tips on how to use money other than spend it? How do you use your money?

Holla at me in the comments! All my commenters I will now refer to as Jessie. Jessie is a good friend of mine, but Jessies got a girl, and I want to make her mine.

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

If you liked this post sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler
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Awesome post, my friend... I really enjoyed reading it!
Keep them coming!



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Thanks for stopping by and glad you enjoyed my little rant

You are welcome... It was a great post!

You're very right in some way but he problem with the 99% goes way beyond just spending. There's also a mindset issue.
Poor people are usually cornered by their lifestyle and choices; for example, a broke ass guy producing a bunch of kids he can't even cater for properly. There's no way in hell that guy will invest shit. That's just one scenario.

The other aspect is like you said, the game is lopsided to favour the 1%. Getting into that circle means that principled people(read as self righteous prick) have to do shit that that they don't want to or feel they shouldn't. Like I always wonder if money is enough to compromise my morals etc. Getting into THAT 1% almost always involves getting your hands dirty, at least I like to think so.

Then there's also the fact that the "cost of money" is high and most poor people, even with their strategic investment and willingness to get down and dirty can't afford. Most of the 1% had a strong backing and NOTHING TO LOSE, because let's face it, they were mostly from rich families, bar one or two exemptions.

After all is said and done, I'd like to close by saying if you have all the money in the world and your penis,are you really rich?

You’re absolutely right in what you’re saying I don’t doubt that for a second but of all the things in our control spending is the one and if we as consumers didn’t spend like drunken sailors thinking Gucci flip flops make you late the 1% would be a little less rich and the club would be a little bigger

While their are indeed barriers against moving up I feel them personally I do think that normal every day people can have enough to live a fulfilling life if they stopped spending and strategically using their money

Remember if all those people are saving prices drop as less money chasing goods! It means more money for constructive use of capital and has a series of knock on effects

Love the part about wearing Gucci flip flops. I'm prioritising saving but at the same time bro, I'd like to buy some nice shit in case I die.

  ·  last month (edited)

ooops

Lol what is nice? Once you realize most things are a bunch of shit and not worth buying it helps a little bit! All I want is enough so that I don’t feel like walking into the ocean with a concreate block around my neck is a better option than going on

A recommendation going around in Canadian banks is having a Reserve cash for 6 months worth of expenses for emergencies, who can save that kind of cash now a days. Only the wealthy. Sounds like the banks need cash? It's tough enough to stay out of Consumer debt and maintaining a 2 month liquid reserves.

Posted via Steemleo

I think the recommendation is fair but as you say its easier said than done and only a select few can pull it off, sure we can see banks are struggling for liquidity or the repo market wouldn't have to be propped up by a fed put. All Italian banks are basically insolvent, Deutsche bank is struggling and HSBC so why would Canadian banks fair any better?

The issue is no saving means they have to keep printing which means more inflation which means higher prices which means harder to save. I gave it a long hard thought and I can't think of any easy way out at the point where are in now, its a runaway economy I don't know how it can keep going but clearly somehow we are, I just can't make any sense of it

Posted via Steemleo

Yes I have savings I can use to pick up a bargain when they come along👍

Posted using Partiko Android

It’s a good feeling isn’t it? I know people who troll online classified sites for bargains and flip them within a week to make a few extra bucks or if it’s Cars it can take a while longer just a quick maintainence and replace small things and ready for resale

Having the liquid cash at a moments notice is something I've not been great at but that's mainly because I set up DD to pay myself via savings first and foremost. Then what's left over is usually plunged into crypto, music or travelling plans.

Best thing to do? Make a spreadsheet so you can see all your outgoings and income and find out how much money you really have each month

The spreadsheet is super helpful but also super depressing I prefer not to look at it at times!

It's even more depressing when your credit rating is shot to shit because you can't pay back more than what you borrow because you don't know how much your spending/borrowing in the first place. Particularly if you want to get any mortgage or finance plan for car, Internet service etc

Do you have to bring real talk? You know your honestly is depressing right? Especially when morale is at an all time low here. You can't even comment on someone's post anymore and they'll be like "thanks for the comment, fuck tron". I need a safe space man!

I swear they make this system so hard so you either kill yourself trying or kill yourself with opioids or some other drug that we don't police but can fuck you up and profit some other company in the process

Haha, no point in pulling wool over the eyes because you just set yourself up to feel worse when life throws a curveball. If the base is "expect the worst" then the good times feel epic. And even if the worst does hit, you'll have some preparation for it. There's an excel club community which I suggest you join to improve your excel skills.

As for steem Tron, whatever is going on, content creators will keep creating content so don't let it get to you.

Lol you saying understanding offers more chance of bliss than ignorance? If that's your logic then I don't get why so many people support Spurs happily lol

lol @paulag just wants to take you down the excel rabbit hole and once you go in you don't come out! I don't think i'm ready to face the truth, keep me plugged into the matrix

I wouldn't be so quick to jibe Spurs given our last few seasons 😬

Haha, just call her Trinity! I've made some pretty balling Excel/Google spreadsheets, especially with the @yourtop3 dream team. If you need me, you know where to find me.

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