Saturday, October 11, 2008

How to control your money?

Today I am going to talk a little about how NOT to spend your money… or more importantly, how to prioritise where you spend it.

For those of you who have been following my buzz marketing advice for a while, the money should now be coming in, and whether it be an extra $100 per month or an extra $10,000 you are going to have many options on where and how to spend that extra cash.

So here is my advice to you in a nutshell: Comfort Comes Before Image

Unfortunately, due to billion dollar ad campaigns, society works the other way around… for example, I recently bought a 50″ plasma tv at over $2,500 in cost, not one of my friends, family or neighbours said anything about this… however, when I let them know that I have a cleaner who comes and irons and cleans my appartment twice per week, they suddenly raise their eyebrows in shock and disbelief at such extravagance.

But for the cost of the TV, I can hire the cleaner for almost a year and a half.

Which of the two is going to have the greater effect on my life?

The Cleaner!!!

One of these expenses will enrich my life, free up my time, improve my living conditions, and therefore my mental state, and generally save me a lot of time, energy and hassle…

The other, is going to waste my time, and negatively affect my fitness and mental condition.

Yet it is the cleaner that gets the raised eyebrows.

I also recently hired a personal assistant to come in once per week and help with my accounts, paperwork, bills, receipts etc… again, this brought a shocked response from my friends, yet they haven’t said a word about my home cinema sound system… despite the fact that I live in an appartment now, and can’t use even 10% of it’s power.

It reminds me of a story from my buddy Woody Maxim, who was mocked by his friends because he bought a $7,300 matress. The same friends who bought sports cars and had no issue justifying that to themselves.

Woody’s point was that he is likely to spend more time on that matress than any other place on the planet, and out of every possession he owns (other than his home), it is what he will get the most use out of.

So if you do have a little extra cash this month, don’t waste it on the crap that the ad companies want you to spend it on, instead, invest in your own comfort, and focus on making your life easier.

Once you have your comfort and state of mind sorted, THEN you can go and buy a Porsche.

PS: a wise man once told me that it is your state of mind that will determine your prosperity level.


No comments: