Inflation and Purchasing Power - You need to know why!

We need to know what the inflation rate is because it affects all of us. The inflation rate represents the increasing cost of living for example. Inflation rate reflect the loss of purchasing power we hold with our money. The higher the inflation the less our money (currency) can buy in the future.

The only way to ensure our money will grow is to invest our money in something that gives us a higher return than inflation. One guaranteed way to loose money is by storing it ourselves, because with time the less we can buy with that money, another way to loose money (but not as fast) is to keep our money in a bank. The bank will pay you interest lower than the current inflation rate but they can lend much more money because of the fractional reserve banking laws at much higher rates. We will cover that topic later. Thanks for checking out my finance matters blog! 

Spending Diary the first step toward you goals

When you start your journey to becoming rich or well off or even just being able to stop worrying about your financial situation, it is very wise to start by defining what you spend your money on. Is it necessary og is it unnecessary!

Once you start to log your spending like that then you start to change your spending habits. Once you see that bottle opener or automatic vacuum-cleaner you will stop and think about what to write in your diary and hence you will stop yourself before you buy it because you know it is not necessary.

When you have done the diary for about 2-3 months then you will have changed your spending into 80-95% necessary things and you can start to increase your current cash flow or your future cash flow, which ever you choose to do.

What did I buy? Where? How much? Necessary or Unnecessary? 
Example:
Groceries - Walmart - $150 - Necessary
Fast food - Wendy's - $35 - Unnecessary

Get started today!

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Dream Board and a Future Diary

The two things I use the most to succeed in anything I do is:

1. Dream board. This is a motivational place where you place visual indicators (pictures or words) of what your dreams are and will become. I placed my dream board next to my bed so I look at it when I wake up and when I go to sleep. This drives my on and keeps me on the right path every day.

2. Future diary. This is a regular diary but the only difference is that you don't write about the past, but instead you write about the future. The more details you put in your diary the more likely it will turn out exactly like you wrote it. Try it out for a week or so and write what you want to happen at the job interview or what you want to happen on the date or anything you are not sure about but want to turn out a certain way.

Here is me, explaining this and introducing my past experience in business:


Thanks for watching, leave a comment if you have any opinion or questions on the matter.

Motivation drives us!

When we decide to change our fate, we have to have really good motivation to drive us!

If you decide that you can't be where you want to be, you are right and if you decide to change our fate today then you are right as well. We are very capable of creating what we want. Some people think they only way to change their fate is to follow a "get rich quick" scheme or guides but only a few can actually do it that way. I am going to tell you how everyone can do it by pacing yourself and do it gradually. We are going for the long run and that varies what the long run means for individuals, it could be 5 years and it could be 30 years, all depends on you. There is no right way for everyone, so do it at your pace.