When you feel down, Look Up! | Alexandre Perotto

My Finances are Always in the Reds!

“Well, money goes out every month. I don’t know where to! There’s always something going on!

Being a team leader has its perks — you get to help your colleagues with their problems. Believe it or not, this in turn helps me to improve.

“Tweety, tell me… how are your finances coming along?”

How crazy this was as I am just barely scrapping through my daily life. Still scrambling through the internet and bookshops trying to read all I can about James Altucher, Gary Vaynerchuk and almost everyone’s life lessons.

“I haven’t really thought much about my finances”, she says.

“I mean are they in the reds?”

”Well since my brother is sponsoring my car. It’s not negative at the moment.”

“Do you Donate?”

“Well, money goes out every month. I don’t know where to. There’s always something going on! Don’t talk about donation — I’m even struggling with savings.”

I thought to myself — what’s the difference here? I started at a level lower than that. It is the mindset — “YOLO, being what if tomorrow I am gone. I wouldn’t be able to enjoy that party!” Then, it struck me that sounds very close to Stevie J’s advice — “If you live each day as it was your last, someday you’ll most certainly be right”.

“Tweety, it is true that… Yes, today maybe your last but from the looks of it it’s not.”

But! Don’t worry, you can still have your parties, here’s how…

I learnt this concept from T. Harv Eker and tweaked it to my way of the game. Imagine yourself as a container. This container is split up into few compartments — Necessities (daily expenses), Savings (future plans/ investments), Play, Study and Gift.

As of now, thank god for to your single income source — your salary, you’ve built an Inlet Pipe.

Like Tweety, most people (traditionally) say that:

Yea… I’ll save/donate/study when I have the money.

They end up paying for everything, from food to clothes to birthday parties to OMG-that-shirt-is-so-cute-for-my-doggie! Then, by mid of the month they’ll go:

“Oh Crraapppppp… Got to start saving already!”.

Now, assuming you don’t have any liabilities, T. Harv explained that it’s better to control our spending desire by spending on us first. Throw 15–20% of your salary to the best Fixed Deposit rate in town (if you don’t know what to do) then allocate the balance to (1) Daily expenses, (2) Entertainment, (3) Self-improvement and (4) Community service. If you do have liabilities — credit card debts, personal loans and etc., you’ll need to take an extra step to work out its pros and cons!

Plus, it’d be double awesome to keep track of your spending through a notebook with you at all times. Oh wait! Smartphones can help you with that now.

That’s it! Reds no more! Plus, if you manage to improve your inlet pipes, you’d be able to go to more parties than ever.

But, my friend there is always The Catch and it’s DISCIPLINE

Can you resist not going to those elusive parties (that doesn’t add value to you. Surprisingly parties are value adding for some, like DJs)? Can you live within your means? Can you resist that Buy 1 Free 1,000 today only promotion for that Prada? And work on the compartments you like?

Then, there’s the CATCH to The Catch:

If you know this and embed this into your daily habits

If and only if, you do that consistently

The same could be applied to your time and future business. Without knowing it, you will not only change yourself but the world because that’s how John D Rockefeller did it.

That beautiful photo up top was by: Alexandre Perotto

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