The 80/20 Rule for Winning with Money

It is easy to over complicate things when it comes to managing money. This over complication of the situation brings doubt, fear, anxiety, and can down right make individuals shy away from taking action and controlling their money. This one action can take over and completely leave peoples’ money up in the air for chance which is no way to deal with your money and your financial future.

Dave Ramsey States “winning with money is 80% behavior and 20% head knowledge.”

20% Head Knowledge

Knowledge is important when it comes to you money. How to manage it. How to work with it. How to make it work for you. How to invest. Where and when to save and knowing when to spend are all things individuals should learn.

Knowing the most impactful strategies when it comes to your money is an important aspect. These principles are the basics of finances and will impact how you manage finances effectively. They will teach you how to build wealth and they will also allow you to achieve financial security.

However, as with any good education, it doesn’t mean crap unless you put it to use and stick with it over time.

80% Behavior

This is where the rubber meets the road. What will you do with the knowledge? Unlike graduating college but before you do, you pass a class called Differential Equations and Linear Algebra. What will you do with that? NOTHING!

Finances are different. All the knowledge is out there. Techniques may change, but the principles remain the same. Spend less than you make. Invest toward the future. Stay out of debt. Enjoy life to the fullest.

The question is… Will you do it?

Will you set goals? Will you track your spending and practice mindful spending? Will you build and emergency fund and manage the debt you are already in? How much will you save? How will you plan for the future? How will you manage risk?

And then… How long are you willing to do it for? Because the real key here is to be consistent and do it for the long haul. One month is not going to cut it here. These actions need to take place for the rest of your life even when things do not seem to be going the way you want or as fast as you want them to.

This is gut check time. When society and your friends drive you to do things you know don’t fit in your budget. What side are you going to take? Are you going to cave and do them, or are you going to stick to your goals and keep moving in the direction you planned for.

My Experience

80% are the actions you take when no one is looking. 80% is when you have to say NO even when you don’t want to. Sometimes it sucks. Believe me, I know from personal experience.

I feel broke. I see people driving and leasing new cars. I see the big houses and wonder how people pay for them. The suits, the watches, my dream boats, AirBnBs…..everything. It always seems like everyone else is doing better. The question is…. Are they???

This I will never know. All I know is that I have to stick to my guns and do what I can to improve my my families future to the best of my knowledge. I stay away from get rich quick schemes. When I don’t have the money to get in on an opportunity, I don’t do it. I stick to tracking my spending, staying out of debt, and practice mindful saving and investing all in hopes that it works out in the end. It is all I can do, and I hope your behaviors are the same.

If you want to work on your financial behaviors and put yourself in a better position…

Hit me up and I will get you on the right track. Helping people is where my heart lights up every single time.

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