As human beings, we have a limited amount of time, energy, health, sanity and money. Learning to discern what people, places or things are worth investing our limited resources into is a skill that often comes as a result of a lot of trial and error and after learning a lot of tough (and often painful) lessons.
Discernment is the ability to judge well.
If you've ever taken an 'L' (loss) in life, love or business, you know that it can take a substantial amount of time and effort to bounce back. Some losses turn out to be just minor inconveniences while others can feel completely catastrophic. Regardless of where on the spectrum your loss of resources might have fallen into, learning to see a loss as a lesson can help minimize your risk of finding yourself in similar situations in the future.
Learn to see a loss of resources as a lesson by asking yourself, "What did I learn from that experience?"
In the ideal world, we wouldn't have to take any losses in life. Yet, it is often from those losses that we can grow the most. As someone who loves to travel to new places, experience new things, and is inherently a free-spirited person, I have put myself in situations that have both resulted in some incredibly memorable experiences as well as put myself in situations where I've thought to myself, "Wow, that wasn't such a great idea." Similarly, as someone who initially always gives everyone the benefit of the doubt, I have created relationships and entanglements in the past with people who have turned out to be true blessings from the Divine as well as people who have truly done me dirty. While many of those people and situations resulted in painful lessons and loss of resources, when all was said and done, what those experiences really taught me was to become better at trusting my own judgment and developing a greater sense of discernment for the future.
I've traveled quite a bit, put myself through enough sh*t and been put through enough sh*t to know who is who and what is what.
When it comes to knowing what types for people to invest in, I've come to realize that I am my best Self when I invest myself and my resources into people who believe in the principles of gratitude and reciprocity. Reciprocity means an equal give and take. Gratitude means having the ability to be thankful and express appreciation. For me, reciprocity doesn't always mean giving the same thing that you are given. Some people might be able to contribute tangible resources such as money and materials while others are able to contribute intangible resources such as time and attention. Both are equally as valuable. Likewise, when it comes to discerning who to invest in, I make it a point to steer clear of people who habitually complain. In my experience, people who chronically complain are usually not very grateful for the blessings they do already have which ultimately means that no matter how many more blessings they are given, it still won't be enough to keep them satisfied.
Good investment: People who know how to reciprocate and know the value of being grateful.
Bad investment: People who only want to take without giving in return who always find something to complain about.
Now, when it comes to knowing what types of things to invest in, I've come to realize that I am my best Self when I invest myself and my resources into cash-producing assets.
Investing your money into things that will make you more money is the true definition of making your money work for you.
There is only so much time you can exchange for income so it makes total sense to aim for investing in assets that can produce income without you having to actively shed blood, sweat and tears for it. First work for your money, then have your money work for you.
What is an income-producing asset though?
Simply put, an income-producing asset is an asset that you pay money for with the expectation that it will generate income for you in the future. Some of the most popular assets are things such as rental property and businesses. A concept that completely changed the money game for me was the concept of assets versus liabilities. Essentially, an asset puts money IN your pocket, while a liability takes money OUT of your pocket.
Wealthy people spend their money on things that generate more wealth.
Good investment: People, places and things that replenish you of your mental, physical, emotional, spiritual and financial resources
Bad investment: People, places and things that deplete you of your mental, physical, emotional, spiritual and financial resources.
If the majority of your dollars are spent on things that make you money (assets), then you're on the path to building wealth. If most of your bucks go towards consumer goods or things that burn up your money (liabilities), then we gotta go back to the drawing board, beauty!
Check out some of my favorite types of assets:
👛Cash and currencies
👛 Real estate and land
👛 House and cars
👛 Equipment, machinery, office supplies
👛 Artwork and collectibles
👛 Precious metals and coins
While this list is an oversimplified list of tangible assets, let’s not forget the intangible assets that can also be worth the big bucks:
👛 Patents and copyrights
👛 Trademarks and trade names
👛 Franchise or lease agreements
👛 Intellectual property
👛 Accounts receivable
Whichever you opt to invest in, make sure you always do your homework to make sure that you’re getting the best deal so that your asset will indeed still be an asset in the future and not turn into a liability that will cost you more money than it’s worth to maintain.
Lastly, don't forget that YOU will first and foremost be forever your own best investment.
You ARE the money, beloved 💵 You are everything and MORE. Work mindfully on increasing and raising the price of the stock of YOU and be vigilant of protecting it fiercely✊🏼Love yourself and take care of yourself because you’re worth your weight in GOLD.
In the moments when you feel weak and not sure if you can continue the fight, look at yourself in the mirror and give yourself a little kiss for all that you’ve overcome and all that you have yet to live for. And if you can’t muster up that strength within you, just come over here and I’ll give you a lil’ kissie 💋 I got chu. We’ll figure it out together. We were made from the warrior spirit. Don’t 👏🏼give 👏🏼up 👏🏼NOW! 👏🏼
The journey back to your authentic self is a life-long journey. Be gentle with yourself and with others. We're all a work in progress! Above all, never stop investing in yourself and investing in those who invest in YOU. Your life and your pocketbook will thank you for it.
Here is to your new start in life and in finances! Stay fabulous, fierce + financially savvy bellas.
Nothing great was ever accomplished alone so be patient with yourself as you call in the people, places + things that can support you in getting to that next level in your life and in your finances. Stop by Latina Money's Dinero School to meet the Dinero Team. Click the image below to check out our masterclasses.