Why Focusing On Saving Money Doesn’t Work – And What Your Intention Should Be
As I browse various websites on financial freedom, it strikes me that so much focus is put on ways to save money.
In fact, there’s more focus on saving money than there is on earning more money.
I personally think that’s a wrong approach for two reasons:
1. If you think about saving money, then you’ll definitely see yourself lacking money at some point in the future. You assume that you need to save money now so that you will have it when problems arise.
You’re already creating problems in your mind, which creates issues in the future, AND that puts you in a state of stress all the time – anticipating something negative to happen at some point.
When people do this in sports (tennis, basketball, skiing, you name it), that mental stress causes loss of focus and actually affects the body, which now is in even greater tension.
The athlete now creates mistakes because he is in a negative state (mind and body are not working at their peak level of performance).
My belief is that the same thing happens in life, except slower. A tennis player in a negative state will most likely miss the ball (or hit it very poorly) in the next second and the cause (fear, stress) and effect (mistake) will have an obvious connection.
In life it takes longer and we often miss the cause of the negative results we encounter – because the cause and effect may be months apart.
But THERE IS a connection and there is a cause for your negative result – and it comes from a negative mindset and wrong actions you took.
So how is it good and useful to be thinking about saving money in the long term?
Consider this hypothetical question: if you were guaranteed to receive $10,000 every month for the rest of your life, would you save money systematically?
Most of you will say yes because you can’t really visualize a guaranteed income of 10k for the rest of your life. But try really hard to visualize that and how your life will be – if you never again have financial stress.
Would you systematically save money?
Systematically meaning that you would save some money for the future when you’d need it more – like in a special bank account or by buying real estate or by investing in stocks and so on.
I assume that your answer would be no. “No, I wouldn’t systematically save money – if I’m guaranteed 10k per month forever.”
You would definitely save some money anyway because you wouldn’t spend 10k in a month and there would always be money left (if you have a reasonable person’s spending habits).
If you agree that you wouldn’t systematically save money, then you must realize that your current plans to save money come from not believing that you will earn enough money every month. (so that there’s no need for extra savings)
And if you don’t believe that you’ll earn enough money, then you really won’t. You’ll self sabotage yourself along the way – so that reality will conform to your beliefs.
So obviously this is not the right mindset to have. But there’s another aspect to keep in mind: I personally don’t like worry. It makes me feel apprehensive.
So why would I perpetuate something (thinking about saving money) that makes me feel bad, causes me long term stress and doesn’t bring positive results?
2. The other approach is about earning more money. It’s about earning enough money through various ways of income that will guarantee $10,000 and more every month for the rest of your life.
If you’re not there, you should strive for that.
That should be your main intention – and NOT saving money.
Now imagine (if you’re not there yet) earning $10,000 (and gradually more) every single month for the rest of your life. Keep that image in your mind for a minute and see how you feel.
You are now entering a positive state – you have a clear goal and your body feels energized.
You feel: “Yes, that’s fantastic! It’s liberating!”
Your performance – whatever you do – in this state is at the peak of your mental and physical abilities. You feel good and you are focused and very productive.
Isn’t this much better than feeling stressed and worried? Aren’t you going to reach your goals much faster than in the first instance?
I am quite positive that you will.
When it comes to a home based business where you create website(s) with quality content and help people solve their problems (improve their tennis technique or choose the right vacuum for their home), you can progress fairly quickly in terms of income – as long as you put in focused and disciplined efforts in a longer period of time.
The start of the journey is not that motivating, since it typically takes at least 6 months to start earning over $100 per month, but that earning curve starts to go up faster and faster, up to a certain point.
Earning $2000 per month in passive income is a very realistic goal after 18 to 24 months of working on an online home business.
Based on my numbers, you can double that income every year. Which means that after 4 or 5 years of focused work on your home based business, will easily earn you $10,000 per month.
The key here is that the $10,000 per month will keep coming into your accounts whether you choose to work extensively on your sites (in which case the income will grow even more) or whether you choose to spend 3 months in South East Asia on holidays.
That’s the magic of the Internet.
Let me be a little blunt here – but this is how I say it to my friends: “If you are so damn lucky to be born in the Internet age – as opposed to any other age in the history of mankind – and you do not take advantage of the earning potential and the possibility to free yourself from the rat race and slavery, then this is the stupidest thing in your life that you’ll ever do (or actually not do).”
In closing, consider this: if you would spend all the time that you use for calculating how much to save, where to save and everything related to saving money – and rather focus on brainstorming how to earn more (and where to actually invest money), what do you think long term results would be?