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Welcome to Masterful Minds -

Are you obsessed with getting better? If the answer is yes, you’re in the right place. Masterful Minds is a community of lifelong learners, action takers and winners. We want to be mindful in life, health, relationships…

…and mindful in money.

Situation

When we think about becoming wealthy, most never think about saving money.

It’s usually about making more money, not spending less.

Morgan Housel’s book “The Psychology of Money” is a must read, chapter 10 “Save Money” is a nugget.

It describes three types of people:

1. The ones who save

2. The ones who don’t think they can save

3. And the ones who don’t think they need to save

Let’s talk about the last two.

If you invest money, you might get a 10% return on average. But there is no guarantee.

Who knows what the future brings?

As a society we always want to make more, but what if we spent less?

You cannot predict a 10% investment return consistently. But you can save 10% of your money consistently. It’s a predictable habit.

And if you do that, your return will be future freedom.

The freedom to take a break after you lose your job. The freedom to say no to good opportunities to pursue a great one.

Idea

1. Open a new checking account, but not with the bank you’re already working with.

2. Once you opened the new account, you will receive a debit card.

3. Destroy it. Throw it away.

4. Every time you make money, pay your future self first, here’s how:

   Transfer an amount you feel comfortable with to your new bank account.

5. Do this in the web browser, not on an app and don’t do autopay (Dopamine will hit every single time!)

6. Delete or never install the app

7. Forget about the bank account.

8. Take a minute and thank yourself for having bought a piece of future freedom.

Why does this work?

There is a German saying:

“Aus den Augen, aus dem Sinn” (translation: Out of sight, out of mind).

That’s the reason why a separate bank account is so powerful, the reason why destroying the debit card & deleting the app on your phone will work.

You will not think about spending that money.

And if you do, it will be tedious to access it, so you won’t bother.

See you next week,

Gereon

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P.S.S.: This newsletter is inspired by Jade Bonacolta’s “The Quiet Rich”. If you want wonderful tips for high performers, broken down so everybody understands them…

…you should check it out (https://thequietrich.beehiiv.com/subscribe).