12-3-24 Financial Freedom Affirmations and Visualization – Intuition vs Proven Money Making Stretegies
It’s time for our 12-3-24 Financial Freedom Affirmations and Visualization – Intuition vs Proven Money Making Stretegies.
I wanted to discuss the idea of intuition in making money related decision and how proven money making strategies that have worked for me often go against my intuition.
Intuition
Do you use your intuition when making money decisions? I use my intuition a lot and have learned that it’s almost always wrong when it comes to money.
Making intuitive purchase decisions usually doesn’t work
I’ve noticed that impulse buying is not good for me. I buy stuff I don’t need and I feel bad about wasting my money.
Intuition doesn’t work for me in stock picking
For example, when investing in stocks I find that I tend to invest in stocks that do not increase in value (I lose money lol) so I’ve actually completely quit day trading. I never succeeded and after referring to books written by prominent investors, it’s easy to see why. Lot’s of investing is automated today and it’s very challenging for an individual to make sense of it all in a profitable way.
Intuition doesn’t work for me in buying property
I have found properties for sale and my intuition says this is a good deal! However, when I analyze the deal on paper I realize the return is 3% to 6% at best with a lot of headache. Then sometimes I realize I did “optimistic” math. The last deal I forgot to put in the cost of the interest we would have to pay and that obviously is a huge factor in calculating ROI. I wanted the deal so I was fudging the numbers and doing sloppy math.
Proven Money Making Strategies
So if intuition doesn’t work what are some proven money making strategies? I’ll share the ones I use and maybe they will help you too!
Don’t Lose Money / Get Organized With Your Money
It’s important to keep track of your money. I input my spending and earnings into a spreadsheet so I can see what is happening every month. I also track our Net Worth as well. If something happens that is taking money out of our accounts I can find it fast.
This helps me become more aware of my spending and income, and I make better spending decisions overall.
Being organized with money has been a long and sometimes fun and sometimes arduous process, but it has made our wealth grow and it is a proven money making strategy.
Invest with a Balance Portfolio
A proven strategy that even won the Nobel Prize is creating balance portfolios for you investing. That means if you’re going to invest 50% long bonds and 50% stocks, you stick to that percentage like a robot. You can actually have robots do it for you which might be a good idea!
I find it painful sometimes to balance, but I do it just like a good robot. And it works. Why would you sell winners to buy losers. It’s really hard to do, but that’s what balancing a portfolio makes you do.
Figure out how you want your portfolio and stick to it. I use All Seasons.
Triple Check ROI Before Buying Property
Do your ROI on a potential investment property purchase. Make sure you factor in interest you will have to pay, unexpected expenses, insurance, maintenance fees, taxes, and all the nuances. Just because you have one investment property doesn’t mean you need to buy another one. Factor in property appreciation but be smart.
Get 2 more opinions, especially from your spouse and if you have an unbiased realtor or financial advisor.
Conclusion
I’m not telling you to not trust your intuition all the time. I would just recommend you follow these proven money making strategies first, and then put a little money on the side for you to test your intuition.
Find out for yourself how good your intuition is in making money.
For me, money education has taught me to follow proven methods first.