Habits are our masters, good or bad. They can lift us up or get us down. A habit is a force to recon with it. One apparently insignificant habit, to put some money every day in a piggy bank, and invest it every month, or week, managed to boost my savings with more than 20%. And on top of that, the satisfaction is there, bigger than any other completely automatic setup or investment pathway. It is about 10 pounds, invested every week in some P2P or bitcoin or property crowdfunding, but it is addictive. And in this case addiction is good, because every week will bring me closer to my early retirement.
As a side discussion, we should always try to implement a good habit every 3-6 months or so, ideally this being opposite to some bad habit that it is ruining our financial performance. Doing this, the goal of financial independence in 10 or less years is not a possibility, but a fact.
Good luck my fellows FI fighters!
G.
Showing posts with label creating habits. Show all posts
Showing posts with label creating habits. Show all posts
Sunday, 13 March 2016
Monday, 18 January 2016
The science behind the cycles
They say that our life is ruled by cycles. Cycle or cellular regeneration, day-night cycle, lunar cycle. There are so many of them. I will talk today about one of them. The cycle of change. How many days we need to create a new habit (or to get rid of an old one, if is bad for us). We will often try to create new healthy financial habits. We need to do that. Some said it will take 28 days, a lucky synchronicity with the Lunar phases. Some said 100 days (as we regenerate 1% daily at a cellular level, hence 100 days for 100% regeneration, because you cannot make an old cell, ugh, wanted to say an old dog, to learn new tricks). Based on a personal observation, i would say that the number that work well for me is 90 days.
Did you ever think about it? How many days do you need to create a new habit?
Thursday, 17 December 2015
Useful habits on your way to early retirement
Yesterday i was talking about mistakes. Today i will take that discussion even further, talking about useful habits i created or i want to create in order to avoid the previously mentioned mistakes.
1. Do not lose money
A lot of people focus on making money, but as well is very important to not lose them after you make it. Warren Buffer No.1 rule is "Never lose money!".
2. Take small risk for big rewards.
As we said, a good 5-10% of your investment should be allocated for risky, highly rewarding projects. Finding ways to make a lot investing only what you can afford to lose.
3. It is what you save, not what you earn that matter.
Again, we talk about this yesterday. If you save 50% on average wages, you will be there much faster than saving 0.01% on a highly paid job. Right?
4. Diversify to reduce risks and maximize returns.
But clever diversification not random selection of shares and bonds. Low fee index fund ring a bell?
5. Stop mindless and useless spending.
Tony Robbins use to say: "spend on things that dramatically enhance your quality of life and stop spending that doesn't add any value to your life.". You get the idea. But it is only up to you to find what to cross from the list.
6. Focus on results or themes instead of to-do lists.
Relevant research find that using to-do lists is counterproductive on long term. Worth a try, i would say!
7. Knowledge is not power, execution of what you know is.
It is not enough to learn, you need to put it into practice. Just make a little bit of progress every day, every week, and before you know it, your financial independence is achieved. Somebody told me a story, about a person who choose to put some money daily in a financial freedom account. And at the end of every month to invest all the money. Imagine that, 12 years later, financially free. Just doing that. Every day, for 12 years in a row. Now that's perseverance.( I am on day 42 right now.)
8. Notice what is working and what is not.
If something work, do not change it. If something is not working, look for a different approach. But do not forget: No problem can be solved from the same level of consciousness that created it. (Einstein)
9. Do not sabotage you own success.
Sometime in order to become financially independent you need to change your core beliefs. You cannot be free with the same mindset that made you poor. It will help to see some of the video of T.H.Eker related to being rich mindset.
1. Do not lose money
A lot of people focus on making money, but as well is very important to not lose them after you make it. Warren Buffer No.1 rule is "Never lose money!".
2. Take small risk for big rewards.
As we said, a good 5-10% of your investment should be allocated for risky, highly rewarding projects. Finding ways to make a lot investing only what you can afford to lose.
3. It is what you save, not what you earn that matter.
Again, we talk about this yesterday. If you save 50% on average wages, you will be there much faster than saving 0.01% on a highly paid job. Right?
4. Diversify to reduce risks and maximize returns.
But clever diversification not random selection of shares and bonds. Low fee index fund ring a bell?
5. Stop mindless and useless spending.
Tony Robbins use to say: "spend on things that dramatically enhance your quality of life and stop spending that doesn't add any value to your life.". You get the idea. But it is only up to you to find what to cross from the list.
6. Focus on results or themes instead of to-do lists.
Relevant research find that using to-do lists is counterproductive on long term. Worth a try, i would say!
7. Knowledge is not power, execution of what you know is.
It is not enough to learn, you need to put it into practice. Just make a little bit of progress every day, every week, and before you know it, your financial independence is achieved. Somebody told me a story, about a person who choose to put some money daily in a financial freedom account. And at the end of every month to invest all the money. Imagine that, 12 years later, financially free. Just doing that. Every day, for 12 years in a row. Now that's perseverance.( I am on day 42 right now.)
8. Notice what is working and what is not.
If something work, do not change it. If something is not working, look for a different approach. But do not forget: No problem can be solved from the same level of consciousness that created it. (Einstein)
9. Do not sabotage you own success.
Sometime in order to become financially independent you need to change your core beliefs. You cannot be free with the same mindset that made you poor. It will help to see some of the video of T.H.Eker related to being rich mindset.
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