Change is the only constant

“He who knows not, and knows not that he knows not, is a fool – shun him. He who knows not, and knows that he knows not, is a student – teach him. He who knows, and knows not that he knows, is asleep – wake him. He who knows, and knows that he knows is wise – follow him.” Different level of consciousness of your financial situation will help to make wiser financial decision which will propel you to your financial end goal of attaining true financial freedom.

By being aware of what you really need to know is empowering, the level of awareness are key to move from foolishness to mastery. Understand the financial rules is the beginning but if you stop learning, you will be vulnerable to foolish financial decisions which can be expensive later on.

“If you think education is expensive, try ignorance.”

Recently, I have experience ignorance on my part due to greed and fear, by clicking to invest in a company results in greater losses, by not cutting losses, I have even greater losses. This is why ignorance can be very expensive.

We are living in a world of constant changes. We are experiencing disruption in traditional industries, job losses, political changes, medicine, environmental changes and education. All these changes will affect our financial. For instance, with advances in medical healthcare, longevity poses the threat of people outliving their money, will they have enough money to see them through their final phase in life? E-commerce and internet have disrupted the way we buy and sell things. Constant state of change will affect our financial well-being, including attitudes, health, government, relationship, income, debt, laws, goals, marriages, environment, desires and emotions. Life’s constant is change.

Changes bring about uncertainties and risk in our lives. When there are changes, we need to adapt and needs to understand how it will affect present situation.  For example, you have bought a new house, you are taking on new debt, and your spending will increase due to monthly mortgages and maintenance fees. You have introduced new changes in your life by bringing unknown factors into your new financial situation which has certain risk level you need to handle. Change will force us to take risks during the period of adjustment between the known, the comfortable past and the new uncertain future. Therefore, you need to understand how to manage the risk and the downside of the financial games you are currently playing. Manage your downside and upside will take care of itself.

Investing in mutual funds, equities and financial instruments have risk. If the stock market is in a down trend over a few years and you need to withdraw money for emergency purpose, you will lose your principal. Likewise, if the market is in an up trend and you sell your equities, you will have capital gain. This reinforces our earlier post on control spending, setting up emergency fund, reduce your debt to maximize your free cash flow to help you cope with changes.

Sometimes people try to invest their way out of debt by taking higher risk for higher return. Fortunes are lost when risks are not understood. If you are deeply in debt or not equipped with the financial knowledge, I will recommend that you take a more prudent approach in investment. Always remember that bad investment can create negative emotions and stresses in your relationship with loved ones. Proper use of money will safeguard your family relationship and keep your emotional life strong and healthy.

Sometimes you may feel out of control with all the changes in your life. It is natural in today’s world. You don’t need to know everything  but you need to know something that is important. Make a commitment to learn a few things and continue to evolve your learning from there. It will be good to start with your insurance policies, credit card bill and bank statement.

Many people always complain about lack of time or they are too busy with their work and do not have time to cater to their financial situation. It takes certain amount of time and effort to keep up with financial rules. People spend more time worrying over their finances than taking the effort to be learned and stay learned. Break away from this cycle of helplessness, take decisions for better and learn about money matters.

How to stay abreast of financial rules?

  1. Accept changes
  2. Set aside time to learn about changes
  3. Commit to learning
  4. Seek professional help here
  5. Develop a master plan

Take massive actions to understand financial rules and accept their constant changes. Take the path to create your own financial happiness!

The Magic of Rebirth – Wisdom of the Eagles

“Things do not change, we change.” – Henry David Thoreau (1817 – 1862)

Throughout human history and many cultures, the Eagle has been seen as a symbol of strength, higher vision and endurance.

“Nothing endures but change.” – Heraclitus (540 BC – 480 BC)

Eagles have long been associated with highest pursuit. Eagles are the master of skies.  Eagle teaches us that we have the ability to soar to great heights if only we will find the courage to do so. There is an old folktale about the Bald Eagle arising from its long lifespan. The eagle has an average lifespan of 70 years old. When the eagle reaches 40 years old, the eagle has two alternatives: either to accept a certain death or face a painful process of rebirth.

Its talons have grown so long it is difficult to grab its prey. Its long beak has grown curved, making it difficult to feed.  It suffers from the weight of its old feathers – what was once a flight of grace and beauty has become clumsy. If the eagle decides to live, it has to find the strength to fly to the top of a mountain to build a nest: a place of refuge for the trials to come. The Eagle’s next challenge will be to break its beak against a rock, in order to give the opportunity to grow a new one.

When the beak has regrown, the Eagle’s next task will be the agonizing process of ripping away the old talons that make it impossible to hunt. Finally, the Eagle must pluck out the old, greasy feathers that hinder its flight.

What follows is a period of dormancy and quietude as the Eagle transitions.

“The universe is change; our life is what our thoughts make it.” – Marcus Aurelius Antoninus (121 AD – 180 AD)

After this period of renewal and rebirth, the Eagle will fly once more, Eagle can once more soar. Ready to face and live the second part of its existence.

The tales regarding Eagles and Humans are very similar, both have tough choices to make during their lifetimes.  Many times in our own lives, we also have to face hard decisions that lead us to the need of a rebirth process. To embrace challenges and changes is never an easy assignment. The transition from one state to another is rarely effortless. Sometimes, it is very painful. But without this change, we would not grow and become who we are meant to be.

“Freedom is a conquered state of mind.”

“There came a time when the risk to remain tight in the bud was more painful than the risk it took to blossom.” – Anais Nin

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