198 | How to Master Money

By acknowledging that our interaction with money, no matter the level of financial wealth or season of life, is a relationship to be refined. Not a game to win, a puzzle to solve, or a journey to complete.

Zooming out tells a story that details obscure.

Simplicity clarifies in a way that complexity disregards.

Reflecting on "why" establishes purpose that tactics overlook.

Trade-offs encourage action that perfection tends to paralyze.

Transparency disarms the fear of taboo.

And financial resilience allows us to face the inevitable uncertainty of tomorrow.

Resilience looks like…

Generating income using our natural gifts and skills sets for a long time (maybe even forever!). All while managing burnout and spending time doing things with the people that matter to us. Income that is a pleasure to generate is even better than it sounds.

Spending in a way that brings lasting contentment. All while knowing that every dollar spent builds an expectation of the future. The ability to adjust when there is uncertainty and a respect for the sneakiness of envy are the only shortcuts to contentment. Ironically, generosity often increases contentment, while debt often decreases it. And spending on relationships with others is an investment, not an expense.

Saving, or - on average - spending less than you make, is the most powerful financial skill. Because it governs expectations and jump starts the pursuit of "enough". Filling the right buckets so they are accessible when you need them is more art than science. And cash on hand provides flexibility for today and endurance for tomorrow.

Investing with some clue about what you’re doing and a genuine belief that it will work. Knowing there are only two guarantees - 1. someone will always have better returns than you, and 2. the way you behave, especially when it’s uncomfortable, will determine your lifetime returns. Being an owner offers the most potential reward. Spreading your eggs across many baskets makes the uncomfortable times less painful. The longer you’re invested, the better chance that it works as expected. And a little more patience than the next person is the only shortcut. And investments will almost always be a distraction in your relationship with money.

Predictably, as our relationship improves, it becomes clearer that "more" does not magically lead to "better".