Financial martial art to exercise your income
Many people are seemingly overwhelmed by the idea of making more money. That is a good game.
Impressive income as a salary, dividends or commission — just various sources to diversify the money stream. Many would talk about the intake when the actual way is a clever management.
It is hard to find the genuine author but this seemed ancient to me:
The money supplied for wages is income while the money you do not spend is earning. And so contrary to popular belief, spending less means earning more.
It is clear that money says goodbye during expenditures. If you reduce expenditures without losing the quality of life — it equals earning.
Now,
You obviously noticed two approaches to personal finances. To make financial health better, you need to treat it as your physical health. For good money management, balance is positive.
You need to maintain a good ratio to be rational.
Physical health or financial health — close and far. Income is like food intake. You know that excessive food requires a special stomach to be competitive to digest food. This analogy is a modest attempt to keep things practical and relatable.
To be healthy, people eat quality food in right proportions. Too much food may lead to unwanted physical limitations:
To be financially healthy, the analogy applies there as well. Being driven, hungry and chasing money is the game. Entrepreneurs, capitalists and businessmen love it. This play rewards those who take risks.
There is obviously less risky attempt to generate earnings. Financial martial arts sounded like a good name to bring a novel approach.
So,
Making more money and managing money efficiently are two acts for the same goal.
Your work and decisions exchanges time to money and nothing extra to be added. However, if you add another layer it makes the whole difference. It is not enough to earn money to be rich, it is also about spending habits.
Wealth experts say that income of $75 000 per year is the peak for happiness. Time magazine says the same. When this threshold is accomplished, there is no need to focus on increasing income if the goal is happiness. Average household income in the US is around $60 000.
So if income is 25% higher than the national average, one is most likely to reach the peak of happiness.
You do not need to become a millionaire or by any means rich. It is enough to generate a certain income and afterwards take smart decisions to increase the amount of happiness. An increase of income brings happiness until a certain point. Even if earnings are lower, smart way to manage money brings more power.
The way you organise your spending habits makes the whole impact on your financial health. Money needs to survive the spending spree. To manage money 25% more efficiently and making 25% more money go for the same thing. However,
Income stream is quantitative, income management is qualitative.
It is about your ability to see more opportunities in economy. Not everybody wants to be rich but many may strive for that because they would see no other option.
Extreme riches is the game of large numbers when money make exceedingly more money.
Then
What to do with the money? You know it better. At least it will reduce the general amount of complaining in the world of inadequate financial health. Sort of exercise where the money unspent could be invested in startups, public markets or real estate with the hope of return. Investments are coming back in one form or another.
You always can earn money, but rarely buy time. Time is a scarce resource. But you may save time by focusing less on money making and more on money management
Which is just a smart habit.
In this way, you buy yourself time to do things which are more important for you.
Financial martial art is a framework you can act upon. The exercise makes less to act like more. Instead of being rich, you can be happy. Or both. Your smarts will do the work on your behalf.
For the majority of people would be clever by not making more money but to designing better financial decisions. It will make you happier more confident and independent. It is good for economy.
This article is for informational purposes only not all information will be accurate. This should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.