The Right Way to Grow Your Stack (of money, of course)

UsMenTalkBy UsMenTalkMarch 9, 20205 Minutes

I used to believe that money represented my value as a person to the world. The more I made, the more I was worth. I know today that this is not true, but for a big part of my life, ages 15–50, this was a “fact” in my head. Every time I earned $1, I would spend a $1.50. Sound familiar to anyone?

Each purchase was for something that would make me look better to the world, and feel better about myself. I applied for every credit card available. Any card you could imagine, I had it in my wallet. I even got a Home Depot card — just because I could. (And to be honest, I didn’t know the difference between a screwdriver and a hammer.)

You see, I couldn’t get enough of the finer things in life. I couldn’t satiate my appetite for more. Money was my drug of choice. And as you already guessed it, you just can’t buy enough things to make you feel better about yourself inside.

During this time, I had no respect for the value of a dollar. I didn’t think about the consequences of my actions. I didn’t think about my financial future either. I always thought the money would just keep pouring in. I let my ego make all of my financial decisions.

Fortunately, through my experiences, I learned some valuable lessons. Here’s my quick guide to how you might want to approach your view of money plus some ideas for better ways of handling it:

1. Give money the respect it deserves. Treat it properly, care for it, think about its welfare, and help it grow up to be a productive member of your family. (Sounds like how you might treat your children, right?)

2. Make NO money decisions based on your ego. This usually results in the disintegration of money.

3. Set your living expenses and spending limits based on the money left over AFTER you first have set aside a percentage to be invested. This can be done on a weekly basis if needed.

4. DO NOT compare yourself financially to other people. This only makes you spend money to buy things that give a false impression to others. YOU ARE NOT competing with anyone. Besides, the financial road is lifelong. And remember, money doesn’t buy self-worth.

5. Diversify and keep a balanced portfolio. Do not bet everything on one big homerun investment like I did. Even if you win, you’re likely to do it again and again …. and eventually, you will lose. I lost it all on my first big bet and now I’m paying the price.

6. Always remember that in the race between the tortoise and the hare, the tortoise won. SLOW and STEADY is the mindset. You can speed things up if you want by putting more of your earnings away.

7. Get the opinions of those who have a proven track record of handling their money successfully before you make some of your final money decisions.

Okay guys, whaddaya think?

Have you had a similar experience? Can you relate? Share your thoughts, your stories, your questions and advice so we can all learn from one another and make better decisions. Plus, you’ll get some huge karma points for doing so.

Have a great day and a great life.

Larry Bryan
A regular guy, another opinion.