11 Rules of How to Deal With Money and Stay On Top Of the Financial Wave
By Dmitriy (aka Life Script Doctor)
Money is something that you need in order to enjoy life in society. In order to find your financial independence it is essential to know how to deal with the energy of money. The rules that you will find in this article are not just simple tips to help you improve the way to deal with money or avoid financial mistakes. If you want to upgrade the quality of your financial energy flow, these rules need to be remembered, mentally digested, tested through your own experience and used in practice.
Money is not the root of all the evil as some people would claim. Money is just a symbol representing the return on your investment of time, emotions and qualified potential (or simply energy) into the lives of others or society. As you probably already know, everything is energy. Thus, money is just the energy of a certain frequency. Lack of it shows that you need to change the way you deal with money, so you can bring your energy flow into balance.
There are many people who strive to earn a lot of money, however, there are just a few who actually become wealthy and are able to maintain as well as enjoy their state of abundance. There are many courses that will teach you how to effectively attract money, but it is also highly critical to know the rules on how to handle the energy of money, so you can reach and stay on top of the financial wave. If you are still struggling with finding your own wave of wealth you might want to look deeper into what ignites your creative essence, motivates your decisions and how you invest your potential.
1. Invest your cash only in things that you know.
It is always a good idea to know as much as you can about the kind of products or services you are paying for in your everyday life. This rule is also exceedingly vital when you plan to purchase something of substantial value or invest your cash to make a profit. Following this rule could have saved at least a quarter of all financial failures. Many people who invest have no clue about the field they are investing in – they often invest in the illusion of a business that someone else has created and they don’t have their own experience to break that illusion (e.g. do you know someone who wanted to get into bar, club or restaurant business without much experience in the field?).
When people have money to invest, they often spend it on projects they know nothing about motivated by the desire for high profits.
If you want to invest in a new business, first, do your research and learn everything you can about the field. When you feel like you know enough regarding the investment you are about to make, then by all means do.
2. Never spend money under pressure.
This rule is very simple. When someone is pushing too hard for you to give them your money, just tell them – “I need some time to think about it”. There are really not that many life-and-death “buy this now or you will lose the chance” situations. If you have done your research and can confidently confirm that you do need this product or service, then buy it. Just make sure it will improve the quality of your life and definitely do not buy something just because you want to stop the pressure. If someone is pressuring you too hard to spend your money – it is usually a sign of a trap. Learn how to say “no”. It is a good skill in life and it is useful not only in dealing with money. Remember that human free will is sacred until it interferes with the free will of another person. When it comes to money, a lot more people are good in the art of offense than in defense. Just make it your habit to “sleep on it” – there are always more opportunities to spend money than to earn it. Blindly following what others are doing or making you do, will have its negative consequences sooner or later. Be true to yourself, take responsibility for what you have and courage to protect your own money when you are “under attack”. When someone tells you “It is now or never” it is a smart thing to say “never” – let it be your decision to spend money, not someone else forcing you to make that decision.
3. Venture on assets not on mere ideas.
Everyone in business has their own agenda and striving to achieve their own goals. Remember about supply and demand. If you have something of value (goods or service), you should be able to sell it at least for a fair price. Lowering the value you bring is never good, pricing your value too high will also have its consequences in the long run. Even though ideas have values they should be at least backed up by actions.
Don’t invest in mere ideas that have no ground behind them. If you venture into something, it has to be more of an asset than an idea. If you have a great idea, first, make it into a tangible action plan based on your research. In today’s world of informational paradigm many ideas do have value and asset like properties, but they only truly become an asset when they are put on paper, carried out through action and are tested in practice against the real world.
4. Spend money on something that you can re-sell.
If you don’t want to waste or lose your money, don’t buy something solely guided by the reason that you like it. Many people do this mistake by purchasing things based on their whim. After they buy it they can’t do anything with it – they are the only ones who can appreciate the purchase. When you are buying something very expensive (e.g. real estate) you should keep these four things in mind: 1) you might change your mind about the purchase with time; 2) the price of sale is defined by demand, not by the value; 3) you can’t spend money to just satisfy your whims, unless of course, you have enough money that you can afford to throwit into the air; 4) the more unique the product or service is, the harder it is to find a client that would want to buy it. The great value of money is that everyone needs it. Thus, when you spend your money, the liquidity of the things you buy is extremely important. During the current hectic time of informational paradigm, it is almost suicidal to freeze the majority of your assets in extravagant things that are very hard to sell (unless of course, it is related to your business or you know a lot of rich people who like to waste money).
5. When it comes to money – profit is more important than the process.
Life is short, future is unpredictable, never lose an opportunity that you are given today. You might get too carried away in the process of making things perfect and forget about the profit. When you get emotionally attached to the things you do, you start disregarding the fact that your actions should bring profit and thus money. The fact still remains that human life does not go on forever and during the human lifespan, you only have about 20-30 years (the time when you are in your prime state: physically, mentally and hopefully creatively) to gather enough wealth to ensure pleasant life in the later years. There is a need to choose the most effective ways to earn money and at the same time enjoy the process while being creatively passionate in what you do. To make money you need to learn how to make effective decisions, act quickly and don’t miss the opportunity to make a profit. There is a story about a dull fisherman who caught a fish one meter long and let it go back to the river with words: “It will be better for me if I catch you next year”. Every little thing that can result in profit makes you wealthier – be keen on getting the profit when an opportunity arises.
6. Never buy when there are more buyers than sellers, never sell when there are more sellers than buyers.
When there are more buyers than sellers you most likely will be paying more than you have to, when there are more sellers than buyers you will earn pennies or even lose money if you sell. Almost everyone buys and sells just as the crowd does. When you follow the crowd you can’t expect to make more money than the guy next to you in the crowd. Following the crowd is often huge reason behind many financial failures or inability to secure financial independence. The instinct of the herd exists and it makes people do things in the easiest and the most convenient way possible. If you are afraid to take responsibility for your true potential, especially if you think that it will make you look strange or arrogant in the eyes of others, then why do you want to become wealthy in the first place? When you allow others (relatives, neighbors, media) to control you in decisions on how to spend money, you lose your connection with the energy of money. When it comes to money, crowd always loses. If you want to win, you should follow the prices not the crowd (price fluctuates in cycles, few people know this and keep it to themselves). In politics, if you unite with majority, you will win in most cases. In dealing with money, it is the other way around. Buy when selling is in trend, and sell when buying is in trend. Buy your sunglasses in winter and winter gear (snowboard or skies) during summer. People in the crowd don’t care about fluctuation of price. They often buy when it is expensive and sell when it is cheap. They live just for today, without analyzing the past in order to know what to expect in the future. The one who wants to make money should be a pessimist during economic boom and an optimist during a financial crisis.
7. Money needs to flow.
Movement of financial assets has much bigger value than their size. What is the turnover rate of your cash assets? A year? A month? A week? One of the main reasons people (as well as businesses) fail to earn money is the fact that a lot of their assets is stale and not moving. The same goes with your talents and potential – if you have wanted to do something creative (painting, pottery, writing a poem, etc) for a long time but have never done it – you basically have a big chunk of energy that is stuck and wants to be released. Creative work does not have to be necessarily related to whatever is bringing you income. Creative work gives you an energy boost and if that energy (as well as emotions) is efficiently invested – it will bring profitable results. Many people have a lot of creative desires that are just lying in the “back of the mind-shelves”. Do you want to know why people who are very good in business are called sharks? Shark’s gills need a constant flow of water, that is why sharks can never stop and they always need to move in water. Money needs to be in the constant flow and working for you. Whatever is not being used in Nature begins to decay and dies. The value of your potential is in how effectively you can produce something or provide a service, it has nothing to do with the price tag you put on it. It is better to have a small kitten size engine that works than an elephant size engine that doesn’t work. Keep your money and energy in the flow.
8. Don’t be afraid to borrow when you need the money to produce something.
You should gather your courage and ask for money if you need it to produce something. Many people have great fears when it comes to debt or asking for a loan. They rely only on the cash they have when doing business. They are entering the ocean of business on a very small boat and trying to keep very close to the shore. With time they will realize that there are a lot more rocks by the shore and there is a much bigger chance to hit the bottom than in the deep sea. If you really want to earn money, you just can’t avoid risk. Without risk, you can probably save the assets accumulated by your ancestors, but you will never be able to build up wealth yourself. If you want money in your life, you should have the courage and when taking a risk you should feel good about it. If you totally lose your sleep just because of the idea that you might be owing money to someone then you shouldn’t go into business or even try to be wealthy. Almost any wealthy person will tell you that they became wealthy due to the money they initially borrowed from someone else in order to implement an action plan based on a great feasible idea. Money itself is worthless – the only way to get profit is by actually using the equipment, selling goods and/or services and being an empathic leader. Money + Brain is the combination that truly creates profit. So if you have a brain with an idea and the action plan to produce something, your next step should be getting the money. If you need money to start producing, then don’t be afraid to borrow. You should have some of your own money to invest of course – if you need to borrow 100% of what you need, it just means that perhaps you are not ready to start that business yet.
9. Don’t borrow money to show off.
Many people (as well as businesses) find themselves in financial crisis because they have broken this rule. They didn’t know the difference between money to grow and money for showing off. To grow means increasing your capacity to do something, while on the other hand, showing off is just embellishing your ability to really do something. Money should be spent to find new opportunities for growth especially when you have the capacity to handle the demand. Showing off is just attracting attention without the ability to really do anything with it. Everything evolves in life, you can’t be a toddler forever. When you grow up to be an adult, you need a bigger “playground” to realize your full potential. Showing off is just creating an illusion that you have reached the next level, but in reality, you are still a child. There are people who use their first real profit to buy luxury sports cars and organize parties instead of reinvesting most of their profits in their business. Everyone who got wealthy was making their top priority to realize their potential in business and not having a nice luxurious life (wealthy life comes as a side-effect or a bonus when you are creative and efficient in investing your energy). Most of the “wealthy” celebrities that you see on TV today are fake, they are just pawns in someone’s money-making machine. It might seem that they are wealthy now, but will they be wealthy in the future and what price will they have to pay in order to keep on bragging about their “wealth”? It is much easier to get to the top than to stay on it. If you are borrowing money to gain profit it is fine, if you are borrowing money to indulge your pride, you are in trouble.
10. If you can avoid it – Don’t loan money.
Following this rule might sound like it will make you a heartless person, but here is what really happens when you loan money to your family or friends. The fact is that as soon as you start having some money, you run into challenges, you now begin to attract all kinds of “parasites”. There is an everlasting war in the world between creators and beggars. Creators should protect themselves from beggars and that is the main idea behind this rule. When you have money in your bank account, it doesn’t mean that you should put your heart into safety deposit box too. You once again need to learn how to say “No”. Leave the business of loaning money to those who know more about it then you do – to the bankers. Remember that it is always better to invest than to loan. If your friend is asking for a loan for his or her business it is always better to buy the shares in the company than to simply loan the money. Exchange your money for an opportunity to produce more, don’t just loan it to someone. When you simply loan to your friends or family you mix your emotions with business and that is never good. You might have heard the saying – “if you want to lose a friend – loan him some money”. If you can’t avoid loaning money to someone – you should loan not more than 20% of your freely available cash assets. And when you have given a loan you can surely put it in your books as money that you have given as a gift. That way if you never get your money back, you were ready for it and if you actually do get your money back it will be a positive surprise.
11. Always put your emotional state above money.
There is an old saying: “If a problem can be solved with money, it is not a problem – it is an expense”. Your ability to be emotionally stable and free from anxiety will give you a much bigger chance to come up with new ideas to earn money in the time of crisis. However, don’t mix emotional stability with not caring about the money. Money, as any energy, needs emotional appreciation and attention. It is important to invest your potential with passion in order to get back the money you deserve for the goods produced or services provided.
If you encounter certain challenges, just remember that it is ok to fall, but it is not ok to stay on the ground for too long mourning your failure. It is important to be flexible and be able to adapt to the changes in the surrounding environment. A tree that is rigid during the storm has much less chance of survival than the one that is flexible and can bend in different directions (but when the storm is gone don’t forget to get back to the vertical position with your “green leaves directed towards the sun”). Every storm will pass sooner or later. It will all depend on how well you can direct the energy of your emotions to deal with the turbulence. It is true in what they say: “Money can’t buy happiness” but knowing how to correctly interact with the energy of money and keeping your energy flow intact can be a very enjoyable process and open many opportunities realize your full potential.
(Most of these rules are based on the work by Herbert N. Cassen. His books survived the test of time (he lived at the beginning of the 20th century), the knowledge from the books is still vital today and considered to be unique as well as a very effective tool for “chosen ones” (those who are actually brave enough to apply the rules in the way they deal with money and do business). A lot of work of today’s “money gurus” are based on materials from Herbert N. Cassen books.)
To learn more about the energy of money, how to find your own wave of financial independence and keep your energy flow in balance, so you can live a fulfilling life of purpose and abundance you are more than welcome to browse Life Script Doctor website for free materials.