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The boring part of finance

Hey everyone! I hope you all are doing well where ever you are. How’s the current situation treating you? Stay safe, stay healthy #2021. I really don’t know what kind of post this’ll be, but it’ll surely be about finance and investing haha. Enjoy.

Preface

Look, I know that making money is exciting. Learning about passive income, what platform gives the best yield / return on your money. BUT something’s more important than making money:

β€œIt’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”

Robert T. Kiyosaki

Getting started

I’m not financially independent yet but I’m getting closer everyday. I’ve learned so much over the past couple of years by keeping an eye on people like Warren Buffet, Charlie Munger, Bill Ackman, Jack Bogle, Naval, Ray Dalio, Robert Kiyosaki. If you don’t know there people, I highly suggest you look them up and listen to their interviews. You’ll begin to understand how they think, react, act the way they do and why they’re so successful.

This video was my first taste of Finance and Investing by Bill Ackman. I was and I still am mindblown why we don’t learn about money early on. Are we supposed to learn about it ourselves? Most of us grow up in an environment where talking about money is a taboo. STOP IT!

I fell in the rabbit hole after watching these video, started to learn about what balance sheets, income statements are, why they’re needed and who uses them. I started to use them in my personal life too, such as generating a profit and loss statement and a balance sheet at then end of each month. Now I can analyse and optimize based on the data I generate.

Principles

You may ask me how and where I learned all of these topics. The answer is: patience, time, excitement, enthusiasm and a LOT of YouTube. I think everyone’s goal is to become financially independence, but this is different for everyone. You all have different lifestyles, food tastes, etc. We are unique human beings, this is what most of us don’t understand. Being financially independent goes beyond money, you also need to be happy and grateful with what you have. If you’re greedy and you always want more than what you currently have then you’ll never achieve independence.

This is a video from Ray Dalio, he’ll be explaining the principles of succes. You’ll see how he dealt with tricky situations in his life.

This is Naval, he has his own podcast where he explains how the human psychology works in general. Mindset is key, you need to shape and find yourself first.

These videos will be your starting point of your investing journey. Watch them, rewatch them and repeat. I also rewatch these videos from time to time as a refreshment.

Conclusion

I wrote a piece on how to control your cashflow back in early 2019 and I’m currently still following the same principle and rules I described in the post. Discipline & patience is key! I did make some tiny tweaks, because I already have a emergency fund setup so the extra is flowing into other pots.

I hope you guys enjoyed reading this post, I just wanted to share a piece of my journey with you. Live below your means, be humble, be grateful, help people and have fun doing all of this. Never stop learning guys, keep the fire burning! Stay AbNormal πŸ”₯!

1 thought on “The boring part of finance”

  1. Pingback: Crypto 101 | Where do I start? » AboveNormal

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