“It’s not the daily increase but daily decrease. Hack away at the unessential.”
– Bruce Lee
Want the quickest and simplest ways to create wealth and abundance? Of course you do! We love “money hacks” that keep us avoid wealth-building obstacles and mistakes, and here are some of our favorites.
We’ve organized some of our favorite shortcuts according to our 7 Principles of Prosperity™, because our 7 Principles are also a way to “hack” a quicker pathway up the Prosperity Mountain!
Prosperity Principle: THINK from a Prosperous Mindset
The quickest and best way to hack your money is to hack your mindset for success! If you want to become a wealthier person, you have to think like a wealthy person. Three ways to hack your mindset:
1. Go on a news diet.
Shut the TV off and just say no to the “CNN” network – Constant Negative News! Rather than letting external forces such advertisers or the corporate media determine your mind, focus on constructive learning instead.
2. Live a complaint-free life.
Perhaps you’ve seen the purple “complaint-free world” bracelets that people wear to remind themselves to stop complaining. When we eliminate complaints, we can focus our minds on the positive.
3. Practice proactive gratitude.
Gratitude is the best and fastest way to put yourself in an abundant mindset. Whether everything is going as you desire or not, practice gratitude for the good stuff already happening while giving thanks proactively for the good that you want to happen!
Prosperity Principle: SEE the Big Picture
We make the best financial decisions when we can see the big picture of our finances clearly, rather than treating different aspects of our finances (savings, insurance, mortgage, investments) as if they are unrelated. But how do we get that 30,000 foot view?
4. Put ALL of your key financial information in one place.
Examine your income, assets, liabilities, cash flow, mortgages and insurance all on one page or spreadsheet. You’ll have a better understanding of how the different pieces of your personal economy fit together, and you’ll make better financial decisions!
We developed a tool we call The Prosperity Profile, and we use this with our Prosperity Pathway™ clients who hire us for fee-based financial advice using our trademarked five-step Prosperity Pathway™ process. We help our clients see opportunities by looking at the big picture of what their money is doing.
(We’ll probably do a webinar to share the profile with all of our clients who are interested… stay tuned and make sure you are subscribed to our ezine and other gifts and you’ll be on our list to be notified.)
5. Get away for a new view.
It’s difficult to get a 30,000 foot view of anything when you’re looking at a computer screen or commuting to a cubicle! It’s valuable to make the time and space to consider where you are, where you’d like to be, and how to reach your goals. I do this several times a year with Strategic Coach. You may prefer a private goal-setting retreat, working with a mentor, or joining a mastermind.
6. Stick with your strengths.
You also want to understand YOUR “big picture.” What makes you tick? Where are you most effective? We make prosperity harder than it has to be when we operate outside of our natural ability.
Tools such as the Kolbe profile and Strengths Finder 2.0 are valuable resources to help us use our talents. We use the Kolbe profile so we can be sure each of our team members are working with, not against, their natural strengths. I also highly recommend Instinctive Life, my sister Tammi’s company, to help you understand the big picture of “YOU”!
Prosperity Principle: MEASURE opportunity costs
Opportunity costs are “the loss of potential gain from other alternatives when one alternative is chosen.” Measuring them to discover the profit you’re giving up when you use money in inefficient ways.
When you follow this principle, what you DON’T do with your money is at least as important as what you DO. Two ways to hack lost opportunity costs:
7. Don’t prepay your mortgage.
Many home mortgages these days are in the 3-4% range, and a large part of your payment is likely tax-deductible. Therefore, by paying the least amount you can on your mortgage and investing the difference elsewhere, you can earn much more than by accelerating your mortgage payment. Get a 30-year mortgage rather than a 15-year mortgage and invest the difference. You’ll be ahead by thousands of dollars, with more freedom and control over your cash.
8. Don’t pay cash for that car.
Same principle here… if you can get a car loan for 1.9 or 2.9%, you’re better off saving and investing on the side with what could have been your car money. When the car loan is paid off, you’ll have two assets, not just a used car!
9. Avoid saving in a typical bank.
Most banks pay you nothing, or even charge you monthly fees to let them use your money! For short term savings, try an internet bank. Ally Bank pays 1.05% on your savings, with no minimums, no fees. a free checking account and top-rated customer service. For long-term savings, high cash value whole life insurance is currently earning about 3-5% after the initial cost of insurance, depending on age and health.
Prosperity Principle: Focus on cash FLOW.
Typical financial planning has focused on net worth. Focus on cash flow instead to build financial independence!
The best cash flow hack? Become a private lender. Do what the banks do – lend money to people who want to borrow it, and earn interest for doing so! Here are some options:
10. Get into the mortgage business.
Have $25k or more you can commit to cash flow? Being a private lender on well-vetted commercial bridge loans can have you earning 7% annually or more (low double digits for accredited investors) in steady monthly checks.
(Tip: Ask questions and make sure the safety of your principle is a priority! Look carefully at companies that offer lending opportunities, and “lender beware” if you want to find your own deals… there is a learning curve. For more about bridge loans and private lending, see “Bridge Loans and Hard Money: An Investment Opportunity?”)“
11. Start a peer lending portfolio.
Have very little to lend? Try peer lending with websites such as Prosper and Lending Club. These websites cut out the middleman – the banks – and connect willing buyers and lenders. With only $250, you could make the minimum investment of $25 in ten different loans and start to build a “portfolio.”
Returns average about 6-7%, and active investors can do better. Find out more about peer lending, or P2P (peer-to-peer lending) in our article, “How Investors are Earning Double-Digit Return Helping Strangers!”
12. Be your own bank.
If you’ve been saving in a whole life policy, you’ve got cash value you can borrow against. Increase your cash flow by using a policy loan to refinance high interest credit card debt or to avoid expensive equipment leases.
(Tip: Hack your own “bank” even further by borrowing against your policy from a bank, where current rates are around 4%. Try the resources here if your own bank doesn’t make such loans.)
Next week: We’ve got three more principles and many more of our favorite financial hacks are coming your way! ==> Click here for Part 2.
Find out more about Prosperity Economics and the 7 Principles of Prosperity™ through our complimentary Prosperity Accelerator Pack, available only through this website.
And you can always reach out to us at Partners for Prosperity to accelerate your prosperity. We’re happy to help you
- explore becoming a private lender,
- start saving in a cash value account, or
- walk you through the Prosperity Pathway with your own Prosperity Profile!