Financial Mindset

- Financial Mindset -

Here are some basic concepts I have gathered together about a financial mindset:

- Your Net worth (wealth) is how much money you own. 

Net Worth: How much you have minus how much you spend/owe (or spend as an investment).

- How those subscriptions suck out your wealth - ↓↓↓

The snowball effect, ----> or expense over time, can be an insidious exponential expense over time that can build significantly

(Think, would you rather forget having Netflix $10/mo. for 10 months for $100 total or put that money in bulk towards paying off a necessity, i.e. new pair of glasses, car maintenance, clothes, etc..?)

+Imagine you and your family's money rolling up 💸 until it rolls down a hill into the trash! 🗑️ That is the snowball effect+

* The snowball effect falls into the same category as Interest fees on all types of loans *

- Pay more now, spend less later technique -

Equivalent to "Quality over Quantity" 

The idea that spending more now, such as wholesale bulk - buying method, and investing more now will result in having more value over time and therefore less expense and more wealth! 

Example: pay more now for an electrician to fix the A/C instead of continually overpaying because of a broken A/C system, which will end up costing a lot more over time.

-" wait a little get a lot vs. immediate gratification and receive less"-

So as the the saying goes "Easy come, easy go"... Many times our investments don't show immediate results, many times we have to wait, sort of the same way you would wait to see a plant grow, continuously caring for the plant until you see the "fruit of your efforts"

Another concept - exponential growth/decline, very similar to the snowball effect, every action you take even the smallest ones will and eventually build up to the point that they begin to affect a person's finances if not maintained properly.

So, there you have it - I know there are a lot more financial concepts out there, but these are just a few to ponder on. I hope you liked reading my article!

Have a wonderful day/night!