I know that ‘money’ can sometimes seem like a dirty word. It’s a topic that some people hate talking about – but it’s so important! That’s why I’m hoping I can offer some good takeaways that make it a little easier for you to understand. Unfortunately, we simply don’t get taught about money unless we take it upon ourselves to get educated. We spend so much time trying to optimise our lives (how we can be the most productive, get more Instagram followers, etc.), so why shouldn’t we optimise our relationship with money as well? I wanted this episode to help you do just that, so you can actually have your money work for you.

HOW I LEARNED ABOUT MONEY

Everyone learns about financial issues in a different way. For me, I’ve had to sort of learn through experience. I grew up in a very low-income household in a poor socioeconomic neighbourhood. I know what it’s like to not have money, which has allowed me to have the mindset that I only have something to gain and nothing to lose. Growing up in poverty has also let me use my creative superpowers to brainstorm more unconventional ways to make money. When I was about 25, I was making a lot of money but I couldn’t figure out why I couldn’t afford certain things. So, I decided to read every book about money that I could find and hired a financial adviser and an accountant. Bottom line: I learned how to use this advice along with basic common sense to build wealth.

 

WHY WE SHOULD EDUCATE OURSELVES ABOUT WEALTH

My favourite phrase is, “Build wealth for your future self.” This means that all of the choices you make today can affect your future self, which means that the time to take control of your finances is right now. The present is also a good time to get started because we’re currently experiencing the biggest transfer of wealth in history (more billionaires than ever, boomers are giving way to millennials, wealth is being unlocked). Education can help you tap into that transfer and allow you to create wealth for yourself and for future generations to come.

WHAT’S HOLDING YOU BACK FROM MAKING MORE MONEY?

You might have some money hang-ups that are holding you back from building your wealth. You might be self-sabotaging by thinking there’s some sort of honour in poverty or by having the mindset that money changes you in some way. That means you’re operating in a scarcity mindset, often ruled by resentment or fear. However, I’m a firm believer that you are actually selfish if you’re not trying to make money. The single biggest impact you can make on the world is to make money – to create jobs and opportunities for the people that work for you and for your family. Making money means you also have the power to make decisions on where your money goes (such as into ethical business decisions that might improve society or the planet). Once you have enough to spare, you can put your money into things that you truly believe in. 

 

SWITCHING TO AN ABUNDANCE MINDSET

By focusing on what you have and what you want, you can create an abundance mindset (instead of a scarcity mindset). This means you believe there’s enough money to go around, which then leads to the power of attraction. You can ask the universe for what you want because it’s what you know you deserve. If you look around, every single thing you look at is a reflection of someone making money or generating income. This unlocks the idea that there’s always money to be made and opportunities out there for you to take advantage of – the possibilities of which are endless. 

 

HOW TO PUT YOUR MONEY TO WORK

Once you’re in an abundance mindset, you can put your money to work. I put away 40% of everything I earn, I have no credit cards, and I have no backup plan. That means I have to constantly put my money to work. If I invest my money in a low-interest savings account, I’ll barely get any return on my money over time (especially accounting for inflation). However, if I invest in the stock market, I can take advantage of the power of compounding. Keep in mind: investing is all about having foresight; you can’t stress yourself about short-term gains. Look at the broader picture to see what will have value in the future. On the same note, evaluate opportunity costs and what return you’ll get. For example, when I started out as a wedding photographer, I was shooting with lenses that didn’t really work because I couldn’t afford the equipment. Instead of spending $500 on new lenses, I signed up for a workshop that cost me $2,000. While I spent more money initially, this workshop ended up making me tens of thousands of dollars over the next few years, so the opportunity cost was well worth it.

 

KNOW YOUR WORTH

One key point I’d like to make is that you should always tip your scales so that your income is heavier than your expenses. People have a tendency to keep spending money as they’re earning it. We grow with how much money we make. However, this can become toxic. I recommend putting your profits first, then focusing on sales, and then expenses. Be sure that you’re making sales and you’re making enough money to pay off or lower your expenses. Within the sales arena, don’t sell yourself short. Always price your services according to what people are actually prepared to pay. By offering unnecessary discounts, you could end up creating a less than perfect experience for your client and getting underpaid in the process. I’d also like to note that knowing your worth doesn’t mean that you should feel bad about taking on other jobs or projects. There’s no shame in getting a second job, a side hustle, upselling your services or taking on more revenue streams. All of this generated income can go into growing your business and building your wealth.

 

Making direct changes with my money means that I’m generating an income that serves my clients and myself. I’m using my money to create opportunities and build a better world. If you have questions or thoughts about this topic, DM me for a chat on @jailong.co. Hopefully, this has made money a little more approachable for you!

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Jai’s 5 favourite books on finances. Click to download

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