“Would you rather life like a king for a year, or a prince for a lifetime?”
Affiliate marketing is probably the only industry where someone can say they made a million dollars their first year, and no one bats an eye.
The problem is young men and money don’t get along well together. A fool and his money are soon departed so they say.
I had tons of millionaire affiliate friends back in 2009 due to the diet boom. Some of them were able to leverage their money and skills into bigger and better businesses.
Most of them? They blew their money away living the “baller” lifestyle. Whatever was left Uncle Sam would take.
After that they would disappear back into the corporate world.
I can’t blame them. They don’t teach personal finance in school. And on top of that, we’re in the social media generation. There’s this pressure to show off in front of the world.
By the way I’m not picking on affiliates. This mindset’s common with athletes, rappers, etc.
I’m going to share with you some of my view points on money. This is not meant for average joe with debt since there are countless blogs and books for them. This article is for the affiliate marketers who are starting to make some cash.
What’s the End Goal of Money?
I view money as a source of power. Money exists for me to make money. There actually is an end goal.
There’s a big confusion between “rich” and “wealthy.” Rich means you have a lot of income. Wealthy means you have a lot of assets that can generate income.
If you have $1,000,000 then you can withdraw 4% a year (Safe Withdrawal Rate). Yea yea I know, $40,000 doesn’t seem like a lot right?
Well lets just say I’ve seen affiliates reach $1,000,000…blow all the money away….and go back to jobs paying $40,000 a year.
$40,000 a year for the rest of your life doing nothing sounds pretty good. $40,000 goes a long way in places like Eastern Europe, South America, and Southeast Asia.
Money’s never the end goal – it’s just a tool to get to where you want.
Here’s my favorite ways to spend money
- Assets that make money: stocks and bonds. Compound interest is the 8th wonder of the world. I’d love to get into real estate in the future.
- I use money to buy back my time. How? Maids, employees, executive assistant, meal delivery services, having a home in a prime location, etc. Now with all this extra time I can use it to make more money. Or relax.
- I use money to invest in myself and my knowledge. I have mentors. I attend seminars. I have an unlimited budget for books and courses.Life’s too short. I don’t have time to make all the mistakes in the world. If someone touches a hot stove and burns himself, do I need to make the same mistake?
- I use money to to give myself experiences.
Here are the STUPIDEST ways to spend money
- The stupid tax. Paying high expense ratios on stocks. Paying high interest on debt.
- Keeping up with the Joneses.
Hopefully you’ve heard of the rat race before. It’s what most middle class Americans do. They’re trapped in this endless cycle of upgrading their lifestyles.
What I noticed is how easy it is to escape the rat race, and then enter another one. You can’t win.
I remember a friend of mine bought a Lambo for $200,000. Some people commented, “Well if he was rich he would’ve bought a Murciélago.” You can’t win with the haters so don’t waste any effort trying to impress them.
I want you to know two concepts.
Am I saying it’s wrong to enjoy luxury? Hell no! I am Asian – it’s in my blood to love Louis Vuitton. You gotta enjoy what you earn.
What I’m saying is to get your priorities straight.
I want you to sit back and think about what’s your end goal. Think about what really matters.
In 2008 I was making $10,000 profit a month before I quit my job. A month after I quit my job all my campaigns died. For those two months I was paralyzed by fear.
I couldn’t handle the thought of going back to a 9 to 5 job. I wouldn’t able to handle the embarrassment.
Once I started making money again I told myself that my #1 priority was to never, ever go back to a job.
It’s easy to think you’re invincible when you have a hot campaign. But shit happens. The offer goes down. The traffic source bans you. The competition gets too fierce.
If you have money in the bank then you can “weather the storm.” You can handle the emotions better.
So How Do You Actually Start Saving Money?
I’m all about keeping it simple.
I have all my finances automated. I draw a salary each month and pay myself first. My retirement gets funded, savings, and bills automatically get paid. Whatever’s leftover is mine to spend.
I also make myself wait a few days before I purchase anything. It’s to prevent impulse purchases.
I’m into minimalism. Less but better.
Master The Psychology of Money
I’m not on social media anymore. I don’t have Instagram or Facebook. It makes a huge difference. Now I don’t care about impressing people I barely know.
One more thing that really helped me is to do visualizations. I visualize a future where I’m broke because I didn’t have the discipline to control my spending.
I also visualize another future. I have 6 figures a month coming in from passive income sources. My families are taken care of. I never have to stress about money coming in again.
That’s true freedom.