Hello, readers! First off, a tip of the hat for coming back for more. If you found the introductory Blog Post intriguing, you are in for a treat as we dive into the “Let’s talk about” series of conversations covering a range of subjects from finances, psychology to everyday life. These are a longer form content, but we hope that this is an insightful read and not a waste of your time—because let us face it, time is money. Speaking of which, that is precisely our topic today: Money.
A Love-Hate Relationship
Ah, money—the source of much pleasure and pain. While it may not be everything, it is unquestionably a catalyst for many things in life. On one side, it can facilitate opportunities, stability, and choices. Yet, it can also be a conduit for stress, inequality, and sometimes, regrettably, our worst behaviors. Just as with my experience in the tumultuous world of investing—from the rollercoaster of Crypto to the high stakes of NASDAQ Growth investments—I have felt both the rush of financial highs and the gut-punch of lows.
The Basics will do!
Now, you may wonder why we are starting with money. Shouldn't we jump straight into investing or saving? Well, to echo my earlier sentiments, smart investments (both personal and financial) are about understanding fundamentals. If you cannot get a grip on your relationship with money itself, all the budgeting and saving tips in the world won't help you. This brings us to the first pillar in our upcoming series of blog posts. Before we talk about budgets, savings, or even pensions, we need to address our foundational understanding of money.
Let us start with the Florin—a gold coin that served as the linchpin for commerce across medieval Europe. It was not just a shiny piece of metal; it was a universally accepted, durable, and stable form of value. Its efficacy was rooted in trust: trust between merchants, nations, and even empires.
Zoom ahead a few centuries, and the British Pound became the gold standard, literally and metaphorically, reflecting the economic and naval strength of the British Empire. Then, the baton passed to the U.S. dollar in the 20th century, symbolizing not just economic power, but also a global trust in American governance and institutional stability. Enter the 21st century—a digital age where Bitcoin and other cryptocurrencies are making their mark. Just like the Florin, Pound, and Dollar before it, Bitcoin seeks to be universally accepted, durable, and stable. But it adds a twist: decentralization. In a world growing ever more connected yet paradoxically distrustful of centralized systems, cryptocurrencies propose a new form of trust—trust in algorithms, coding, and mutual consensus among its network of users.
From the Florin to Bitcoin, the evolution of currency mirrors our changing society, reminding us that our complex relationship with money is as timeless as it is ever-changing
While money itself is a tangible entity, our relationship with it is intricately psychological, impacting everything from our day-to-day behaviors to our long-term well-being. While I was initially going to delve into five major psychological factors that influence our financial decisions in this Blog Post, I've decided to dedicate an entire post to this critical topic next in the series. Trust me, the depth of insight will make the wait worthwhile. So stay tuned for the next installment in our blog series, where we'll unpack the complexities of our psychological relationship with money. You will not want to miss it!
From Survival to Financial Freedom
In my professional life, I oversee multi skilled engineering projects and the importance of a solid foundation is critical, the same should apply to our financial life. Money should go from being something you are always chasing, something that feels like it’s slipping through your fingers, to being a tool you can use effectively to build a fulfilling life. It's a journey from financial survival to financial freedom, reiterating how compounded, small investments in our personal lives can yield substantial long-term benefits.
What's Coming Next?
Over the next few months, we will be embarking on a financial voyage through assorted topics—psychology, budgets, savings, emergency funds, debts, you name it. And trust me, each posts intent is to be more than just advice. Think of them as building blocks, or better yet, small, strategic investments that compound over time into a well-rounded education.
Transparency & Community
As we explore these themes, I am also keen to hear from you.
Remember, this is not a monologue; it is a dialogue.
I learned a lot from the school of hard knocks and I am still learning every day. I want this community to be a space where we can all share, learn, and grow together. Your wins are our wins; your losses are lessons for us all.
Signing Off
So, as we set sail into the world of money management, consider this your formal invitation to step aboard. Whether you are a fledgling investor, a seasoned veteran, a young professional, or a new parent, this journey is for you. And remember, the most powerful outcomes of any compounding process are delayed. Patience is the key.
Let’s talk soon!
Matt, The Compound Coach
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