In today’s video I wanted to give you the best trick you can use to improve your finances. This idea is so powerful, and it is something I never hear anyone talk about. So if you want more money, keep watching. WATCH NOW
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VIDEO SUMMARY
This is something I have learned over the years, and I have found it to be very useful. Never rush a financial decision. This sounds simple, but there are some important reasons why this works. When it comes to decisions about your money you should take time to be thoughtful, do thorough analysis, and negotiate good deals. So few people do this and instead, make hasty decisions, make mistakes, get scammed, and usually waste a lot of money.
What I tell people is to try to notice if you are ever feeling rushed or stressed or under pressure when you are making a money decision. That feeling should be a warning flag, telling you to save your money and walk away from whatever you are about to do. Just walk away. There will be another deal that will come along later where you will have the time to think through your decision. Whenever you rush things, you are usually losing money.
The worst situation that happens to people a lot, is when people see an opportunity that they do not quite have enough money to make it happen. Because it is a great opportunity people try to stretch their money to make it work. But those situations almost always end up badly. Honestly, that is exactly how a lot of people go bankrupt. You can always walk away, continue to save, and then later on you will have the money and time to make a good decision.
Let us talk through a few examples.
- Investing. If you are feeling rushed about buying into a stock before the price appreciates, that is a huge red flag. You want investments that will continue to go up in price for the next five to ten years. An extra week or month should not matter over the course of the next five years. So take your time to do your homework before investing your money. You should not feel like you are missing out if you do not buy right away.
- Home purchase. If you are making large purchases like a car or a house, take your time. If it feels like you are going to miss the purchase if you do not pay quickly, you should probably walk away. Maybe you should wait a year for the market to calm down. If you do not have the time to think about your purchase calmly, it means it is a seller’s market and you are probably not getting a good price.
- Business deals. If you are feeling pressured in a business deal, you should probably walk away. If you do not have the time to work through a negotiation, it means you do not have leverage, and you are probably getting a bad deal. Instead, focus on business deals where you have time to communicate with your partners and work out arrangements that meet everyone’s needs.
Those are three examples, but you will find in any situation that this is a good business rule to live by. Never rush a financial decision.
The reason why this works is it taps into the basic fundamentals of finance. Many of you have heard the phrase “buy low, sell high.” This is an investing concept meaning you want to buy investments when they are well priced, and then sell them later for a profit. This is what you want to do in life. You only want to buy when you are getting a good price for something. Well, when you are feeling rushed, that is a sign that the market is hot and prices are high. These are times when you should not buy. It is almost like your body has a secret sense that tells you when to buy low and sell high. When you are feeling rushed, that means prices are high, it is a seller’s market, you should not be buying, and you should walk away. If you feel rushed, that is a sign you are getting a bad deal.
I am making this sound so much easier than it actually is. It is so easy to get caught up in financial opportunities. It is natural to not want to miss out. You have energetic sales people who are getting you hyped. You have to practice patience, self-control, and delayed gratification which are all incredibly difficult. But if you make it a habit to be thoughtful and slow when making financial decisions, over time it will pay off.
This advice I am giving you today is the opposite of a lot of a lot of business guru’s will tell you. A lot of business people champion the idea of taking massive action. They will tell you to go out into the world, do not waste time, and make things happen. What I am saying is a little more complex. I encourage people to take move fast with taking massive action, but at the same time move slow when it comes to your money. It is possible to do both at the same time. For instance, you will see entrepreneurs take massive action and start businesses, but what you may not realize is they are often starting those businesses with other people’s money, while being conservative and protecting their own money. It is still possible to go chase your dreams, without spending any of your money.
The message I am sharing today is to make financial decisions slowly. Be thoughtful and careful with your money. One example I use a lot is the last car I purchased. I knew the type of car I wanted. I saved up for years so I could pay for it in cash. When I was ready, I studied the car market for six months. I tracked every time that type of car was listed for sale in my area. At the end of six months, I found a car that I knew was a good opportunity and a good price. I negotiated with the sales person and I am confident and happy in my purchase. That is an example of what it means to take your time when making a purchase.
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Neither Zach De Gregorio or Wolves and Finance shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.