As an investing coach, people are always asking for tips to grow their money.
And the tips I give them usually aren’t what they’re expecting.
Before I tell you what my #1 hack is, here’s why it is.
I’m an entrepreneur.
I’ve worked for myself since 2000 and am a success by anyone’s definition.
And while I did all the right things to grow my businesses and make money, I did a lot of wrong things that prevented me from keeping a lot of that money.
Back in 2014, after my best year in business ever, instead of saving and investing my profits, I decided to crack open the wallet and start living large.
We took amazing first class trips to Hawaii, Iceland, and Ireland.
We built a brand new million dollar home complete with a media room and gym.
We spent the summer on Cape Cod one year.
I figured that I’d worked hard so I deserved these things.
This is a phenomenon known as Lifestyle Inflation.
My income was way high so suddenly I was a baller.
Then it all started to crumble.
I got bored with my business and closed it suddenly to start a new one.
And revenue nosedived.
And for the first time I began to feel some anxiety around money – specifically realizing that I barely had anything saved for retirement.
Certainly not enough to afford my lifestyle.
I dug deep to try to figure out what I needed to do to get back on track and pump up the jam on my savings and investments.
And that process uncovered the #1 financial tip that I now live my life by.
What is it?
It’s not make more or invest more or even join my Academy (which helps you do both).
The #1 financial hack is…
Control your ego.
I was, too.
I discovered that my savings is the GAP between my income and my ego.
(You should read that again and let it sink it because it’s powerful.)
When my ego is big, like it was in 2014, my savings is small.
And when my ego is in check, like it is now, my savings is big.
And so are the investment returns that savings produces.
Keeping your spending below your income level so you can save and invest requires controlling your ego.
So, to sum up, here’s the winning formula…
- Control your ego to avoid Lifestyle Inflation and spend less than you earn.
- Save and invest the difference.
If you need help creating an investment plan, let me know.
Life is good.