On this inaugural article of Smart Money, I’d like to talk about something that I’ve been consistently asked on, which is how to manage expenses. Should you curb them? Should you save more? Should you invest it? Today I’ll let you know on my take on that. On this article you’ll also understand returns and how I categorize them. If you liked this article too please comment below so I can put more of them or share your thoughts.
On the top of the 247 AM echelon, we like to call ourselves “Smart Money” for many reasons. We firmly believe that being successful in anything (like social success) should overlap in your other areas of life. If it does not, then you have a congruency and consistency problem. Myself and many of my closest mentees are set financially (at a pretty young age) and I am making this knowledge available to everyone. Here we go!
Just like in 247 AM, I think about trimming and cutting the fat first. For the average person, expenses are a daily part of their lives. Knowing where your money goes is important. My take on it? It goes everywhere, so its important to categorize where that money goes, and try to assess if where it goes is “worth it.” In this regard I consider myself a manager of resources.
Most guys usually have set backs in this regard. Many men act on money based solely on ego, and need to get the biggest, baddest, “whatever”… and then when they realize that these things give them almost no returns (except a small fleeting moment of being awesome), they realize the investment has been worthless. A lot of my beer and football-induced buddies here in America live this way and I’m not afraid to say it.
Fiscal responsibility is part of being a 247 Attractive Man. We don’t follow what the middle class do (the 90%) which is save, save, save either. That brings you ZERO returns and a measly 0.001 percentage while your currency sits there being devalued. Acknowledge that you WILL spend anyways. The question is, whether that money you spend grows into something or not. Here’s how I classify them:
1) Expenses that lead to Invisible Returns - that could be something that improves your image, improves your lifestyle, brings you more people, and not necessarily a monetary return. That could be throwing a party for prospective clients and quality friends. It could be investing in people. That could also mean taking courses to get better (like with us), buying books to enhance your life, etc. Our Lifestyle Retreat is possibly one of the best “Invisible Return” courses I can recommend because its a 2-week immersion course with other 247 Attractive Men in what I call, “the incubator.”
2) Expenses that lead to Visible Returns – that could be a percentage return, a stock ticker that goes up, or value of an item that goes up due to demand like artwork or numismatic coins. That could be investing your money in different asset classes like real estate, precious metals, stocks, etc. That could also be creating a business. I have an extensive rare book collection that I am working on right now among my other collections as well as hard assets and liquid ones.
3) Expenses that lead to NO Returns – those are expenses that bring back absolutely nothing but maybe a fleeting moment of happiness, like an expensive meal out or going to a casino to gamble. That could also be liabilities you cannot afford like bigger loans, car loans, etc. Alcohol and Tobacco are two huge expenses that kill mens’ balance sheets. Not only does it not give you any returns, but it kills your health in the process. I generally avoid these expenses because they are ego-based.
I am pretty sure that the average guy’s expenses fall on the third one. Expenses that lead to NO returns. If this is you I suggest looking into the two things we spend our money on, expenses that lead to invisible AND visible returns, or a combination of the two. Move away from expenses that don’t give you anything in return. That’s what generic people do (out of their 24/7 misery usually), and restructure your life in where these two are the ONLY things you’ll put your money on.
Take note our Smart Money Coaching Program will start in 2012. If you would like to get ahead of the pack put your email below and you’ll be the FIRST to get notified about updates on the program. We will be getting our inaugural group of clients on this amazingly fresh program in which we have ZERO competitors and the early bird list will get a surprise package from me when that happens. I will be doing a one-on-one analysis of where you’re at and will be making suggestions as to where you should put your hard earned money on coming into 2012. We will also integrate Champions of Choice to have Smart Money releases per month for members. Welcome to Smart Money.