Just the Facts, Ma’am

I recently read an amazing book entitled “Ten Global Trends Every Smart Person Should Know” and I was instantly drawn into their argument. In this amazing book, which I heard about through the Jordan B Peterson podcast, I learned that, despite what we may believe or have been told, the world is actually improving in a great many ways. We tend to focus on the negative as a survival instinct but the data paints a very clear picture: life is better than than is has ever been in human history. 

The book delves into many different aspects of life on earth:

Economics - How many people are living in poverty today vs. A few decades ago.

Population - How an educated and free populace will naturally control the birth rate

Health - How access to clean water and health care is more ubiquitous than ever

Well-being - How people are generally happier and more well adjusted these days

In most areas of life, the data clearly shows that things are improving at a staggering pace. We are led to believe that the world is always in a state of crisis because we watch the news and buy into their “if it bleeds, it leads” mindset. Negative news captures our attention due to our propensity to focus on survival, so we think that the only things going on in the world are bad. This book gives us hope and a perspective that is hard to refute. If we look at the facts and disregard our emotional bias we can see things as they are or could be. 

The Rules of Money

This mindset applies to money management too. If we make a plan and follow it, despite our emotional spending triggers, we can accomplish great things. We can achieve financial freedom in our lifetime if we look at the facts and let math do the thinking. We are too emotional to always make the right decisions with money. We need to create a plan with a sober outlook, using mathematics and boring concepts to make our financial aspirations a reality. 

If we learn some basic money concepts, like budgeting, investing and some creative side-hustle ideas, we have all the tools we need to create a future of freedom and abundance. But we get in our own way. We make rash decisions about our spending and what is necessary in our lives.

I equate this to someone with an addiction. An addict needs to live by a strict set of rules concerning their addiction. They must follow the rules no matter what. How they “feel” about the rules at any given moment is irrelevant. They can only succeed if they follow the rules that were agreed upon when they made the decision to get better. Money management is no different. You must define a set of rules about your money and live by them. Every. Day.

If you are feeling blue and want to indulge in some retail therapy - you don’t.

Because your rules don’t allow it. 

Your friends are going out to the bar and you want to spend a ton of money on drinks and entertainment outside of your budgeted amount - you don’t.

Because your rules don’t allow it. 

If you have rules, you are saving yourself from yourself. This is the key to financial freedom. 

We need to remove the decision making process from our daily money behaviours. If we have hard and fast rules, we don’t have to constantly make decisions about whether we should or shouldn’t spend money on things in the moment. By having firm rules, we prevent decision fatigue and emotional spending. If I know myself, I tend to make BAD decisions if I leave it up to how I feel in any given moment. I need rules that override my emotions.

How we perceive the world, and our financial situation is actually not helpful. We need to see the world and our journey to financial freedom from a factual and unemotional perspective. 

New Perspectives

I highly recommend you read the book “Ten Global Trends Every Smart Person Should Know” as it will make you realize how much of a negative bias you may have. When you realize how you feel about things isn’t necessarily how things actually are, you can then make the connection to other aspects of your life where you may be making decisions based on feelings rather than facts.

Since this website is focused on money and personal freedom, I am suggesting that you take the lessons from this amazing book and realize that you need to face facts when it comes to your personal wealth. When you do that, you can create a plan. Then you must stick to it. No matter how you feel on any particular day.

There are a ton of great wealth creation strategies out there, and I recommend you find one that fits your life. My books and courses are nice, easy, paint-by-numbers strategies for wealth creation and I would be thrilled of you gave them a try. I also am happy to suggest other people’s work as I have learned a great deal from people smarter than me. My Top 5 Personal Finance Books are a great place to start. If you really want to get schooled, read Unscripted by MJ DeMarco. It will punch you in the face with the truth. Awesome. 

As of this writing, I have finished my new book and it is being edited as we speak. It delves into the world of macro-economics and how we have been living under a system that has been defined by a very biased mindset, focused on domination and competition. I explore how the world is changing due to the great work put forth by amazing thinkers like Riane Eisler and others. I offer a new perspective on capitalism and suggest how we can all prosper while still embracing the undeniable benefits of a free market and an inclusive economic system. 

This new book, and others, are joining the inevitable march towards a better planet, happier people, and prosperity for all who want it. I can’t wait for you to read it.

In the meantime, thanks for your support and happy investing!