Is it possible to profit from passion

Is it possible to profit from passion?

by with No Comment BusinessMoney Management

Drawing, gardening, home-based baking. These are some of the emerging trends where passion meets profit. To most people, this could be a dream come true. A dream where you are paid for things you enjoy doing. You could even supplement your wealth management journey through your passion.

You might have received an invitation to a limited time entrepreneur webinar or click through a Facebook advertisement asking you to “BE YOUR OWN BOSS”. In any case, I believe that it is definitely possible to profit from your passion.

In my journey to talk to my readers on their experience profiting from passion, I noticed some key trends that emerged. I realised that most people fail because they did not ask themselves these 3 important questions early on. To help you save your time and effort, I have dedicated time to write this so that you will not fail in this journey on profiting from passion. I have also interviewed a few entrepreneurs who are willing to share their valuable experiences at the end of the article.

Is it possible to profit from passion
Is it possible to profit from passion

Identify Your Passion

For most people, this comes intuitively. For others, it may take time.

Personally, it took some time for me to “identify” my passion. Reading good financial articles (like this one.. haha) and sharing about financial knowledge has been a great pleasure for me. Initially, I do it very sub-consciously. I started off sharing about the best credit cards, simple wealth management tips and also the lessons I learnt from books. It was just something that I enjoyed doing. Though, I did not profit from any of them. I enjoyed the process.

This was “invisible” to me until one of my friends pointed it out to me. He asked me why not look for a career in the financial services space where you can make full use of your passion. It took me 4 years just to “identify” my passion. While it certainly took a long time, I enjoy every moment of my career now.

Coming back to the original topic, one of the most popular question that I hear from my readers is this: “How can I profit from my passion?”

After spending some time to discuss with them, I realised most of them cannot identify or admit truthfully that they have a certain passion. Most of the time, it is because the “passion” appears to be profitable. Their minds were thinking about profitability rather than passion. I think this is very normal. We do have real priorities like improving our standard of living, saving for retirement etc.

In the midst of finding our passion, we lost our way.

I believe the first step is to identify your passion. This will take time. I believe that passion are met to be a net positive in life. Even if it is not profitable or not yet profitable, it has to give you an intangible benefit like happiness.

For Vivian from Platter With Love, she “accidentally” discovered her passion. One faithful evening, she designed a platter (out of pure fun) and brought it home. She witnessed how her family was amazed and delighted at the beauty of the platter arrangement, the food, and also the taste. That was the start of her venturing into the platter business.

Step #1: What is your passion?

 

Does Time Permits?

You will need time. It is very frustrating if your passion now becomes a time burden to indulge in along with the other responsibilities you have in life. I asked a passionate hobbyist Plantssg his biggest challenge. This is what he mentioned.

“One of the biggest challenge is to make sure your assets don’t die. It must grow well and thrive”.

While he did not mention about the amount of time he spend in his garden, I personally believe he would have spend a lot of time there.

Before I scare any of you away, I would like to add another dimension to this. I believe that Time is about Consistency. It is okay not to make any money it your passion yet. It is okay to spend time on it. The most important is to consistently schedule it and commit to your passion. For now, forget about the profit and just doing it consistently will make you better and better. You will hit gold sooner or later.

Even for Liling from Ola.bakess, she had to schedule time outside of her full time job to plan for her business. Her weekends were spend baking while weekday nights were spent in business planning.

Step #2: Schedule your passion

 

Be Honest

Do you really need this passion to be profitable? Sometimes, your passion will turn to become a frustration. Just imagine while preparing your bread for your next customer, you receive a ridiculous bad review. This will definitely put a damper on your mood for the rest of your day.

Is it possible to profit from passion bad reviews
Is it possible to profit from passion ridiculous bad reviews

Honestly ask yourself if this passion needs to be profitable for it to bring happiness to the lives of yourself and others? I would rather you love the process. Not all passion has to be profitable although it can.

Step #3: Are you mentally prepared?

 

Final Thoughts

I believe that it is definitely possible to profit from passion. It is a journey of exploring, having fun consistently and if it makes you happy, profit from it! If you have a story when you tried to profit from passion, I would love to connect with you. Do email me or text me. I look forward to some of your stories.

Continue scrolling to read the interviews with fellow entrepreneurs. Wishing you the best in your passion =)

Alternative, find out more on some of the best ways to earn extra income in Singapore.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

 

Special Interviews

Disclaimer: I’m a great supporter of these businesses. I do not collect any forms of remuneration by featuring them.

Vivien (Platter With Love)

  1. What made u decide to venture into selling platter with love ?
    The business is very much an extension of me as a person; my love for gastronomical fare, my love for quality time spent with family and friends, my love for variety and options, and my belief in contributing back to the community. I have worked as a school teacher before this. Despite years of teaching in schools; in primary schools, secondary schools and junior colleges, I still feel inadequate. I was missing life lessons. Though I am still a teacher at heart, I had wished to be better myself as a person before heading back to the classroom (possibly in my retirement years). One evening, I designed a platter, out of pure fun and enjoyment, and brought it back to my maiden home. I witnessed how delighted my family was as they marveled at the beauty of the platter arrangement, like that of a piece of valuable art work. After digging in, the platter sparked many conversations, my family was curious as it was not a conventional fare. They enjoyed the liberty to try out different food combinations. Not only that, the platter provided something for the whole family, from my niece who was one to my grandmother who was 91 years old. Everyone huddled around the platter and delighted in the meal, it was a precious sight. That was when I resolved to turn it into a business.
  2. Before you started selling your products, how long have you been practicing making platter with love?
    Platters are a relatively new concept, especially in the Singapore market. The concept started in 2016, in Australia/New Zealand, when it was done as a grazing table at a wedding reception. The grazing table offers a variety of food options, primarily cheeses, charcuterie, fruits, and just about anything else you like. Unlike conventional buffet lines where you queue for your food, the concept allows for a freestyle selection, according to your preference. When Covid-19 hit last year, I read about many who have lost their jobs. The job market did not look promising. Instead of viewing that as a crisis, I started to do extensive research and reading up on my passion: gastronomy. I have always enjoyed experimenting and cooking. It was after months of experimentation and research, rounds of feedback from family and close friends, that we arrive at the menu we have today. At the same time, I underwent officially training as a private chef and went for food hygiene certification. I have run this business for over a year now.
  3. How much time a week do you put into running this business?
    I do not stipulate hours when it comes to running Platter With Love. As an entrepreneur, I learnt that we not only possess the ability to dream, but we need to be willing to put in the hours to set our dream into motion. Apart from customer service, fulfilling customers’ order, hours need to be put aside into creation of content for the website, maintaining customer relations, inventory checks/replenishment, licensing, etc. At the end of the day, the raving reviews from my customers are an acknowledge of my efforts. It gives my great satisfaction to know that I have done my best in ensuring happiness and bliss, (apart from a delectable food platter) are safety delivered to my customers. More importantly, the true reward comes in how this business is serving as a vehicle to donate meals to the needy in Singapore, and that makes everything is worthwhile.
Profit from passion Platter With Love
Profit from passion Platter With Love

 

Liling (Ola.Bakess)

  1. What made u decide to venture into selling Ola.Bakess?
    I just like to bake and eat macarons (Hahaha)! Macarons are very delicate almond cookies and require a lot of attention. The recipes are very challenging but I get a sense of excitement and happiness especially when it becomes perfect. It is my dream to make perfect macarons
  2. Before you started selling your products, how long have you been practicing making Macarons?
    It took me almost 1 year for my macarons to be at the level of my satisfaction. I took various courses such as macarons class to have a deeper understanding on the basic foundation. There were also a lot of try and error practice to be satisfied with the recipe.
  3. How much time a week did you put into running this business?
    This is difficult to quantify. I have a full time job. I usually do business planning during weekday evenings. My weekends are reserved for baking.
Profit From Passion Ola Bakess
Profit From Passion Ola Bakess
How To Identify Bullshit Investors Say

How To Identify Bullshit Investors Say

by with 2 Comments General EconomyInvestment AccumulationMoney ManagementMoney MindsetSpeculation

This might be an uncomfortable read for some. If you might take umbrage at what you are going to read, I suggest heading to other friendlier parts of my website such as “what’s holding us back in our wealth management journey”.

The market don’t really make sense on a day to day basis. Benjamin Graham, father of value investing famously said this. “In the short run, the market is a voting machine. In the long run, the market is a weighing machine.” Personally, I agree with this and that you should really invest in the companies you want to see grow in the long run.

Alas, in real life we have plenty of distraction coming from our friends, “Gurus“, Gamestop, Bitcoin, Elon Musk (just to name a few).

On the ground, here is a story of bullshit that I hear one investor says and here’s how to identify them.

How To Identify Bullshit Investors Say
How To Identify Bullshit Investors Say: Hulk Says BULLSHIT!

 

There are 4 stages of Bullshit that you get to hear. It follows very closely to the market cycle.

4 Stages Of Market Cycle
4 Stages Of Market Cycle

The most noise happens typically at stage 3. One recent example would be the market crash of March/April 2020. Let’s start here.

Stage 3: This time is different. Wait for confirmation.

As Sir John Templeton puts it, this time is different is the 4 most dangerous words in investing. During March/April 2020, the stock market crashed. People were pulling money out of the market because they felt that COVID19 was going to have a significant impact of the economy.

During a crash, the best thing to do is to keep calm and learn how to endure the correction. As easy as it may sound, it is not easy to do. I know of people who are pulling out or adopting the stay at the side saying “this time is different”. The crash will be longer than usual and this is the first time (not really) that a virus has made it’s way worldwide. Every sensible country is in a lockdown. The entire economy is in a standstill. This situation will drag on. It is better to keep some in cash.

Most people don’t do anything (if they have the capital) or they may take losses to protect their capital because “this time is different”. This is bullshit because this is the best time to invest in companies you always wanted to.

Stage 4: Some leverage is good debt. Let’s 10X our capital.

Things are recovering right now. People are starting to enter the market. At this stage, most people would be making money from the stock market easily. If you know someone who have invested from May 2020 to Dec 2020, they will be bragging how they can be financially free in no time. They are looking into leverage instruments because they are looking to 10X their capital!!

This is the time to go long because economies are recovering. Some sectors have benefited and it is obvious (in hindsight) that they are benefiting (WFH stocks like zoom). You are a little late but there is still some time to enter. People all around somehow are making money and you don’t want to left out.

More bullshit because greed is now fueling the stock market. This is the easiest time to make money no doubt. Talk is cheap, people are showing off their results on Facebook. Almost everyone is making money here.

Stage 1: Value Investing is Dead. You got to pay more for quality.

This the most scary part of the cycle (in my opinion). The market is over-heated and valuation are rich. The narration here is “you got to pay more for quality”. As more and more people starts to pay more, the price of the stocks starts to go higher and higher. Cathie Woods starts taking central stage here in 2020 with her ARK funds outperforming all major indices. People starts to buy into the idea and invest with higher prices.

The ultimate bullshit because prices are going to the moon now. No one is concern about fundamentals. Everyone is waiting for the stock to gap up and celebrate until…

Stage 2: You need to have diamond hands. Valuation is everything.

For some reason, earning beats don’t increase the stock price anymore. Although the results are fantastic, stock prices are dropping. Stock prices drops and people start to think that there is a “sector rotation”. Here, you will need to have diamond hands as you have bought the stocks are “good prices” already.

However, stock prices continue to drop. Warren Buffett takes central stage again. Gurus are saying valuation is everything. Prices continue to go down and people gets worried. People begin to sell in companies that they have less conviction in.

Bullshit because it is too late to notice that valuation was too rich before.

 

Final Thoughts By Wealthdojo

The cycle continues on. I heard this bullshit in the last one year all from the same investor. I cannot imagine how inconsistent his/her investment strategy is and how many people have lost money because of him/her.

To put things into context, the above advice are good advices except that it is adapted conveniently to sound smart in the market. Investment is not all rosy and sunshine. It comes with rains and storms. We need to learn when is the best time to plan the seeds, when is the best time to wait and when is the best time to celebrate. A far sighted plan is needed to prepare oneself in their investment journey. Average investors learn from their own mistakes over time. The best ones learn from other people’s mistake using their time and experience. Investment is not complicated. You just need to learn from the best and apply it.

All the best to everyone enduring this correction.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

2021 New Year Revolution

Start a Financial Revolution Not Resolution in 2021

by with No Comment Behaviour EconomicsMoney ManagementMoney Mindset

It is 2021. I find it annoying that there are still tons of articles out there will tell you to write down New Year Resolutions such as paying off debts, spend less than you earn, set a budget, drink less Starbucks etc. It is 2021. You already know that. In the new era, it is not about finding information. It is also not just about finding the right information (6 Steps Wealth Karate). In the new era, it is making use of the right information easily.

Some of readers have shared with me they fall short of their 2020 financial resolution because they have the lack of clarity or strategy. I wish to take this one step deeper. It is not that you did not know what to do. It is also not that you did not know how to do. However, psychologically it is not easy.

In this article, I will be writing how to start a financial revolution so that you can create the right environment to win psychologically.

Now, all this can only be done after done this: You can only start 2021 properly after doing these 3 things. Start here first.

 

2021 New Year Revolution

2021 New Year Revolution
2021 New Year Revolution. Photo from Huffpost.

To put yourself in the right environment, you need to first understand yourself. I summarized this by a quote that I frequently used.

There are three things extremely hard: steel, a diamond, and to know one’s self. ~ Benjamin Franklin

After understanding yourself, then you can create the right environment for success. You want to create a system that is psychologically easy to win. Here are 4 ways to put things in your favor psychologically. I bet you will not be able to find this easily elsewhere.

 

#1: Set Weekly Budgets Instead of Monthly Budgets

Ever wonder how we could save so much when we were students but not now? The trick is that most of the students are given a weekly allowance instead of a monthly one. When students then track their budget on a frequent basis, this creates a saliency effect. The more we noticed something, the more we are aware about it, the more we will review it.

For majority of us, we are now following a monthly budget. We don’t review it as often and so become surprised when we overspend during the 3rd or 4th week of the month. If budgeting is an issue for you (psychologically), set weekly budgets.

If you are planning for big ticket items, you can consider using this to help you. If you have spending issues, do read our Ultimate 4 Quadrants Shopping Guide.

 

#2: Audit Your Finances

Just like teachers marking the examinations paper for students, or MAS checking the quality of consultant’s advice, we feel a certain pressure and would want to make sure that our work is correct. It is the same for finances. It has came to my attention that most people don’t audit their finances at all. This means we will not know if we are on the right track when it comes to finances.

Auditing your finances is very simple. Just like a teacher marking each question, ask yourself if an expenditure is reasonable. Notice that I mentioned reasonable rather than “correct”.

For example, one of my friend have been subscribing to Spotify for $9.99 a month. He initially subscribed to Spotify because he wanted to listen to ads-free music on the way to work (I think that’s pretty reasonable). However, in March 2020 he has started to worked from home and he realised he has forgotten about it and is continuing to pay for Spotify but have not been using the service for the past 7 to 8 months. He has now stopped the payment but will be taking it up again when he needs to travel to work again.

I recommend you to audit your finances once every half a year. Spot those that are “unreasonable”. They could help you save a lot in the long run.

Financial Revolution 2021 Audit
Financial Revolution 2021 Audit: Source: CIA

 

#3: Allocate More

Do this only after you have already prepared your emergency funds. After that, yes. Allocate more.

It is very natural to feel happy when you see your bank account increasing. However, you will only realised the effects of inflation after many years. I strongly recommend you to allocate more when you have the opportunity. Whether it is an insurance policy, an endowment policy, an investment policy or buying into stocks or property, I encourage you to add more when the time is right.

To psychologically help you, you can employ certain tools such as regular saving plans to deduct a similar amount every month. This automation will help you allocate more and yes be on your journey to financial freedom.

 

#4: Sell Things That Are New That You Don’t Want

Look around your house right now, I believe that there will be some items that have been there sitting in the cupboard for a while. Be it a gift from a friend or a book that have not been touched or a lucky draw that you have won, there will be some item that has been around but have not been used.

Take this opportunity to do some spring cleaning and make some money. Put it on carousel. You will be surprised at how much money you can make out of your own room.

Before selling them, ask yourself 3 questions.

  1. Have you used it for the last 3 months?
  2. Will you use it for the next 3 months?
  3. Does it have sentimental value?

If those answers are no, those items will not be missed. This is where I personally sell my own items. Check out my Carousell items to give yourself an idea.

 

Final Thoughts By Wealthdojo

Don’t start a resolution, start a revolution! If you haven’t been successful in your financial journey, just pick one of the above and commit to it for the next 3 months. I assure you that you will look back at 2021 and be proud of yourself.

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

 

The 4 Quadrants of Spending

The Ultimate 4 Quadrants Shopping Guide Especially If You Are 28 and Older

by with One Comment Money ManagementMoney Mindset

It is getting easier to buy things now. With Shopee, Lazada, Taobao working their magic with their 9.9, 10.10, 11.11, 12.12 sales, consumers like you and me are finding it hard to resist buying. You are not alone in this. Shopee, Lazada, Taobao’s amazing algorithm makes sure that they show us things that are of interest to us and will keep reminding us until we press “add to cart” to achieve our happiness (or end our misery). It is only at the end of the month that we log into our Ibanking account to see that we have already spend over hundreds or thousands of dollars shopping.

 

First thing first

This is not a post to advocate not spending. I believe expenditures are important and necessary to our productive and creative self. It will be quite lame to live a life saving every single cent and not enjoying the joys of the world. Thousand of blogs out there are advocating on “saving money on the Starbucks” or “stop buying the avocado toast”. While it certainly makes financial sense, it is also certain that it will be a miserable life. Let me give you a real life example.

When I was 24, just graduated from University. I was poor and was determined to save every single cent. In the months to come, I only ate at the mixed vegetable rice stall at hawker centers. It costed me $2.90 when I bought a combination of 2 vegetables and 1 meat. I also refused to buy coffee/tea. This saved me a lot of money but I assured you that I was not looking forward for my meals at all. Financially, it make sense. Psychologically, it took a toll. I change a lot after that and you can read more here.

My suggestion in this ultimate shopping guide aims to help you find a balance financially and psychologically. That being said, saving money and investing them is the cheapest way to become financially free.

 

The 4 Quadrants of Spending

After sharing about personal finance for over 8 years, I realised 99% of what you buy will fall into the 4 Quadrants. I will sharing real examples and also for those of you who needs rule of thumbs, I will be glad to provide that for you.

The 4 Quadrants of Spending
The 4 Quadrants of Spending

 

The Cheap and Useful

The cheap and useful is the most straight forward of all. Just buy it. This is because it is going to help you with your pursuit of growth and it is also affordable. An example of cheap and useful will be like a book. A book increases your knowledge in the subject matter. You may get more insights after reading a book. You can even read it again and still get insights for it. I buy books almost on a monthly basis and I can feel myself growing in knowledge. (Sidenote: I’m in the process of getting a affiliate program with bookdepository. I strongly believe in daily learning and hope you can do the same too). In this quadrant, it is your cheapest opportunity to succeed. Previously, I wrote about 3 books to read during COVID-19. I’m probably going to update that soon.

 

The Expensive and Useful

There will be times when the product or services is expensive. However, my advice is invest and buy it. This is because these product or services will probably allow you to be more productive and more effective. Some examples of the expensive and useful are an IPad, a good handphone, a good powered laptop (especially if you are doing video editing) or standing desk. These will increase your productivity on a daily basis. The last thing we want is to create a bad experience when you hustle. Some other products or services includes a gym membership, a coaching or investment class.

4 years back in an feeble attempt to save money. I settled on a Xiaomi 3 phone. The specs were okay and I got it because it was cheap. The phone started to lag after 6 months. It was such a pain finding information on a phone. On one fateful day, my hands slipped and the Xiaomi 3 came crashing down on the floor. When I picked it up, the phone screen was already died. The phone refused to reboot and I spend the next day and a half buying a new phone and transferring all my data to the next phone. I probably missed out a day of text. As a self employed helping clients, the worse thing that can happen is to suddenly become uncontactable. I bought Huawei’s flagship P10 Plus after that and never looked back.

Invest when you need to.

 

The Not Useful (Be it cheap or expensive)

The expensive and the not useful will usually fall into the luxury market space. I once knew a lady who spend $800+ on a pair of slippers. She has worn it once before and she stopped wearing it because she’s afraid the slippers will be exposed to the rain. For those of you who are curious, this is the slipper.

The Ultimate 4 Quadrants Shopping Guide Especially If You Are 28 and Older Expensive and Not Useful
The Ultimate 4 Quadrants Shopping Guide Especially If You Are 28 and Older Expensive and Not Useful

On the other side of the quadrants are the cheap and the not useful. While it seems harmless due to the same quantum, the accumulation of these products will add up. Examples of these are like a low quality shirt (you know you can feel it).

I once when to taobao to buy a pair of jeans. The jeans cost only $5 and I felt that it was “useful” for me. When it arrived, the cutting was terrible and there was this weird smell on it. After wearing it for one time, it went even more out of shape and my pocket had a hole in them. I threw it away and swear by Uniqlo now.

A very general rule for those in the not useful quadrant is to not buy it.

However, like all things in life, you can be flexible. If the part of Hermes Slippers is essential for your happiness (or for whatever reason logical or not), consider buying a second hand one. The second hand market is a big one. You probably will save lots just buying on a second hand market. The best part is that no one will ever know that you got it second handed! Hang on for another tip coming below.

 

Disclaimer: Useful or Not

One of the most common question my client ask me is “How do we know if this is useful?”

The fact remains that the usefulness of the item is subjective and highly dependent of oneself. For example, the gym membership is expensive and “useful” ONLY if you go to the gym and workout at the gym. Otherwise, it is not useful at all. To help you further if you are unsure if the product or services is useful or not, I have created this rule of thumb for you to consider.

If you are NOT SURE that the item is useful, and it cost > 15% of your monthly income, then don’t buy it.

If you are KNOW that the item is NOT USEFUL BUT you know you will feel happy, and if it is > 5% of your monthly income, then don’t buy it. If you still want to buy it, consider a 2nd hand version.

 

Final Thoughts By Wealthdojo

Hopefully, this guide can help you make better decision in your next shopping session. Be it Cyber Monday, Single’s Day, Boxing Day, you will be prepared. Wishing the best in your financial journey.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

3 Money Beliefs That Will Destroy Your Life Sharpen Your Axe

3 Money Beliefs That Will Destroy Your Life

by with One Comment Guest WriterMoney ManagementMoney Mindset

3 Money Beliefs That Will Destroy Your Life Worried

3 Money Beliefs That Will Destroy Your Life Worried: Image source

Much of our lives revolve around money. In a sense, money does make the world go round. We rely on money to get things done and fulfil our basic needs each day. 

As a result, money can be the source of a lot of our worries and problems. A lack of money can cause a high level of stress and lead to negative thoughts. 

The set of beliefs that we have about money can either make things better or worse.  When we have disempowering beliefs, it’s difficult to see opportunities and possibilities since we’re so focused on the negative. E.g. I can’t, I don’t, I’m never going to, It’s hard. 

These negative thoughts lead to negative feelings, which then go on to impact every other aspect of our lives. 

I believe that having the right mindset can change the way that we perceive and experience life. Here are three money beliefs that can hold you back from living a fulfilled life, and ways that you can shift your perspective on them.  

 

Belief #1: If you work harder, you’ll be able to earn more 

This might’ve been true back in the day. But nowadays, with the possibilities that the internet affords, more and more people are finding ways to work less and earn more. Your income no longer needs to be tied to the amount of hours you put in. 

Instead of working harder, you can work smarter. It’s like the difference between trying to chop down trees with a dull vs. sharpened axe. Spend some time sharpening your axe (upfront effort), and you’ll be able to get the job done much faster. 

3 Money Beliefs That Will Destroy Your Life Sharpen Your Axe
3 Money Beliefs That Will Destroy Your Life Sharpen Your Axe Image source

Internet entrepreneurs who sell a product that doesn’t require a huge ongoing time commitment can work fewer hours and might eventually even earn more than salaried employees. The internet enables you to reach customers at scale from all over the world and earn money while you sleep. 

One way to start selling something online without needing to spend much money upfront is teaching something that you know. 

For example, you can use platforms like Skillshare or Udemy to create an online course. You create it once, and each time someone enrols, you get paid!  

Of course, this will require some time and effort upfront, but once it’s done, the money will keep coming in without you having to lift a finger. And this is just ONE potential business idea. A quick Google will enable you to find many, many more. 

3 Money Beliefs That Will Destroy Your Life New Skills
3 Money Beliefs That Will Destroy Your Life New Skills: Image source

Nevertheless, if you think that the internet entrepreneur thing is not for you, there are still ways that you can increase your income potential without working harder. 

You can learn some new skills online through the very same platforms that I just mentioned (+ many more) and increase your value to an employer. If you’re a Singaporean over the age of 25, you can also make use of your SkillsFuture credit. 

Instead of waiting and hoping for a promotion, you can make the leap to a new field with skills that are in demand, e.g. digital marketing, AI/machine learning, data analytics. 

Of course, don’t learn something for the sake of learning it — ideally, you’d actually have some interest in it! Otherwise, it’ll be very painful and it won’t be a career that you’ll enjoy. 

 

Belief #2: It’s not possible to become wealthy without a good family background 

It’s true that being from a well-off family provides you with many opportunities that might not be available to others. You can move in the right social circles, get access to a good education and have more financial resources at your disposal. 

But there are many examples of people who became wealthy despite not growing up with a valuable network, getting a prestigious education or having money readily available. 

You shouldn’t let your upbringing or circumstances hold you back, nor complain about all the entitled people who seem to have an easy life because they got handed a silver spoon. 

Daymond John from Shark Tank was raised by a single mom in a rough neighbourhood and is dyslexic. He’s now got an estimated net worth of $300 million. 

3 Money Beliefs That Will Destroy Your Life Daymond John
3 Money Beliefs That Will Destroy Your Life Daymond John: Image source

He didn’t win the lottery or have it easy. He started a business called FUBU from the ground up, and their “office” was his mother’s house. He even closed the business three times from 1989-1992 because he ran out of capital. 

You might think, “oh sure, he’s probably one of those rare lucky people,” but there are also quite a few (largely unfamiliar) examples of Asian entrepreneurs going from rags to riches. 

Just because these people are not famous in mainstream media and their stories are not well-known, it doesn’t mean that they don’t exist. There are probably many more people out there who haven’t had a story written about them. You could become one of them. 

 

Belief #3: Money can buy happiness 

Money can buy a lot of things. And it can definitely help you solve a lot of problems. But it can’t buy happiness, because that’s something that can only be achieved internally. 

Our minds are programmed to keep wanting something new, something better, something different. We build up a sense of excitement and believe that getting X thing will bring us long-lasting happiness. 

We may be really happy for a moment, but the feeling will soon pass and we’ll be back to wanting something else to experience the same high. 

Having a good meal — that’s great in the moment, but forgotten in a few hours. 

Getting a nice bag/car/house/[insert other material thing here] — that’s great for a while, and then you get used to it. What’s next? 

3 Money Beliefs That Will Destroy Your Life Shopping
3 Money Beliefs That Will Destroy Your Life Shopping: Image source

And for the people who want the money not for the high of consumption, but for the high you get by showing off your status, when will it ever be enough? 

The truth is, we don’t end up happier after fulfilling our wants. 

We just end up wanting more. 

It’s funny, though, because our happiness actually comes from the absence of wanting. When we’ve gotten that new [insert material thing here], for a moment we don’t want anything else. But once our mind gets bored, it looks for something else to focus on… 

To find more lasting happiness and fulfilment, we should work towards things that also benefit others, or things that have a sense of profound importance to us (e.g. things we want to do before we die).  

Having a daily gratitude practice is also beneficial to remind us of everything that we already have and lessen our urge to have more.

 

Change your beliefs, change your life

We always act in accordance with our beliefs. That’s why a simple mindset shift can do wonders. I believe that we should seek to learn about different perspectives and find role models who have achieved what we might’ve once thought was impossible. 

Have you had any of these beliefs? If so, will you take steps to overcome them? 

This is a guest post by Rachel from Hey, it’s Rachel. She writes about mindset, personal finance, and all things personal development. She’s on a mission to empower millions of people around the world to live their best lives through education on mindset and growth.

 

Final thoughts by Wealthdojo

These are my favorite quotes from Rachel. Thanks for the beautiful article.

  1. Money can buy a lot of things. And it can definitely help you solve a lot of problems. But it can’t buy happiness, because that’s something that can only be achieved internally. 
  2. It’s funny, though, because our happiness actually comes from the absence of wanting. When we’ve gotten that new [insert material thing here], for a moment we don’t want anything else.
  3. Instead of working harder, you can work smarter.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

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The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.