Chapter 1 Understanding Spending Habits

Managing your finances requires a willingness to learn and adapt.

Have you ever tuned into Grant Cardone's insights? He recently shared a video addressing the very issue of spending wisely. Regardless of your income, poor spending habits can lead to financial ruin. For instance, it's alarming that 78% of professional athletes end up bankrupt due to failing to adhere to sound financial principles.

Consider this scenario: a boxer wins a staggering $400 million. If they then spend $401 million, they will inevitably find themselves in financial trouble. Inflation, primarily driven by government actions of printing money, compounds this issue. If, for example, you have $1,400 and you splurge on a pair of Jordans that you can't really afford, you're only exacerbating your financial situation.

In the freelance world, this often translates to overspending on unnecessary advertisements or purchasing followers instead of cultivating genuine engagement. So, how does this relate to freelancing? When you start earning a significant income, lacking the right financial habits will lead to hardship and constant pressure.

To summarize, if you're interested in a more comprehensive exploration of this topic, I highly suggest checking out that video. You might wonder, “How can someone flaunting their wealth offer me advice?” However, Grant stands apart from the typical online "gurus." His strategies are effective, and he practices what he preaches. In truth, I wouldn't classify him as a guru at all—consider researching him if you're skeptical.

If you missed the video, here's a brief overview of its key points. Keep an open mind as you read this:

Section 1.1 Evaluating Your Expenses

1. Must Have: Essential items
2. Necessary: Items you need
3. Desirable: Things you want
4. Unnecessary: Items you don’t really need
5. Wasteful: Poor spending choices

Subsection 1.1.1 Managing Impulse Purchases

What should you do when you're tempted to make extravagant purchases, like a luxurious house or a flashy car? Initially, I found this concept confusing, but after several viewings, it became clearer.

Here are steps to consider before making a big purchase:

• Verify if you can afford to pay for it in cash.
• Assess whether you could purchase two of them outright.
• Ensure the expense is covered by passive income.
• Avoid items that can't be written off on your taxes.
• Acknowledge that the purchase might be unnecessary.

If any of this remains unclear, I highly encourage you to watch the video. It delves deeper into these concepts, and my aim here is to share its valuable lessons on financial management.

Here's to a successful 2024! Wishing everyone joyous holidays.

Stay safe, stay healthy, and remember that the power to shape your future lies in your hands.

Chapter 2 Key Takeaways from Grant Cardone's Video

The first video titled "How to NEVER HAVE A SPENDING PROBLEM" offers practical advice on managing expenses effectively, emphasizing the importance of financial discipline.

In the second video, "How to Stop Spending Money," viewers are guided through strategies to curb unnecessary expenses and achieve financial stability.