The First Thing I Did When I Made Money
Summary
When I started making money, the first thing I did was pay off my debt. This helped me focus more on making additional money, as I didn't have the burden of debt distracting me.
I created an "oh fund," which is a backup plan where I put most of my money. I don't touch this money unless everything goes wrong, ensuring I have enough to start over if needed.
It’s important to know yourself. Think about whether having your personal money tied up in decisions will lead to better or worse outcomes for you.
- In my experience, knowing that my business decisions affected my personal finances made me more cautious. It wasn’t until I had my backup fund that I felt comfortable taking risks because I knew I had a safety net if things didn't work out.
Video
How To Take Action
I would suggest implementing a strategy to pay off any existing debt as soon as you start earning more money. This will help you focus better because it removes the stress and distraction of being in debt. Once that’s done, create a financial safety net that I like to call the "oh fund." This is your backup money for emergencies. Remember, don't touch this fund unless everything goes wrong. It's your safety net, allowing you to take risks without fear.
A good way of doing this is to put aside a fixed percentage of your earnings regularly. Think of it as paying yourself for future peace of mind. This step ensures you have a fresh start if needed and gives you the confidence to make bold business decisions.
Take time to know yourself. Ask if tying your personal finances to business decisions makes you cautious or fearful. It’s vital because understanding this can help you adjust your approach. If having a safety net makes you feel more comfortable taking risks, then focus on building that fund early.
These steps are low in cost and time but high in value. They give you clarity and security, essential for personal and business growth. By paying off debt, building an emergency fund, and understanding your decision-making patterns, you’ll set a solid foundation for making courageous and well-thought-out decisions.
Full Transcript
first thing that I did when I started making money I did not feel good having debt and so I paid it off immediately that gave me attention back and I could take that attention and put it on to making more money but I want to feel like I have like a backup plan I put most of that money into what I call an oh fund never touching this money again but if everything goes to then I still will have enough money to start over you have to know yourself and understand am I going to make better or worse decisions if I feel like my entire personal money is tied up in these decisions knowing that decisions I were making in the business would also affect my personal status and income made me make worse decisions I took less risks and I probably played it too safe until I had that oh fund established where I was like all right I know that if everything else goes to zero I've got this
