titanium life podcast episode 51 - the american dream is a lie
TRANSCRIPT
The
AmericanDream is
A LIE
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The American Dream is to achieve financial freedom. This itself is not the lie. The lie is how we were taught to achieve this dream.
Where do we Learn the American Dream?
For most of us, it's our parents.
Our parents teach us the path to financial freedom is going to school, graduating with good grades, and working as hard as possible to move up the corporate ladder.
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Humans Learn Through Mimickry
Like most mammals, humans learn behaviors at a young age by mimicking their parents.
If your parents have bad financial habits, then you will have bad financial habits.
Let's talk about how to unlearn these bad habits.
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The Four Steps of Changing Your Financial Mindset
Many think making as much money as possible is the first step to financial freedom. The reality is it comes third in the financial order of operations. Here are the four steps:
1. Cut Your Expenses2. Invest Your Savings3. Make as Much Money as Possible4. Keep Score with Key Performance
Indicators
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Cut Your Expenses
Make a list of all your current expenses. Put a star next to the expenses that are absolutely necessary. These are expenses like food and shelter. Any other expenses can be cut.
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Invest Your Savings
Saving is boring, but investing is addictive. Invest the money you free up from cutting your expenses into assets like stocks or real estate.
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Make as Much Money as Possible
Once you have mastered the first two steps, you are then ready to make as much money as possible. Make a list of things you can start doing at work to earn a raise.
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Keep Score With Key Performance Indicators
Key Performance Indicators (KPIs) are how businesses measure their financial success. You should also track your finances with KPIs. Two simple KPIs to start with are:
1. The percentage of each paycheck you're able to save
2. The amount you spend each pay period
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