The Federal Reserve is driving the economy into a recession as it tries to fight inflation.

The Federal Reserve raised its benchmark overnight interest rate by three-quarters of a percentage point in an effort to cool the most intense breakout of inflation since the 1980s. And, there are further increases’ in borrowing costs still ahead despite evidence of a slowing economy in an effort.

Inflation has been raging in the U.S. while economic growth measured by GDP is slowing. The U.S. Commerce Department recently reported a second straight quarter of negative economic growth.

Generally, a central bank tightens money by raising interest rates when the economy is healthy or over heated in order to head off inflation. By making money more expensive to borrow, the Fed’s rate moves work relatively quickly to temper demand. As buying a house or a car or expanding a business becomes pricier, people pull back from doing those things. With fewer consumers and companies competing for the available supply of goods and services, price gains are able to moderate.

Larry Summers, the former Treasury Secretary, argued that the Federal Reserve needed to take “strong action” to control inflation and that allowing inflation to gallop out of control would be the “bigger mistake” than causing a recession. Summers blames inflation on the spending boom of 2020/2021 that spurred excess demand.

Summers believes to tame inflation the Fed must crush demand. But, slowing the economy down could trigger a recession, leaving workers unemployed and families with lower incomes.

Fed officials themselves acknowledge that their tools are blunt, that they cannot fix broken supply chains and that it will be difficult to slow the economy enough without causing an economic downturn.

References:

1. https://www.nytimes.com/2022/07/27/business/economy/interest-rate-inflation-impact.html
2. https://www.reuters.com/markets/us/fed-unveil-another-big-rate-hike-signs-economic-slowdown-grow-2022-07-27/

“Train your mind to see the good in every situation.” —Unknown

Words set the direction and destination for your life. You can’t speak defeat and expect victory! That’s why you need to pay attention to what you’re saying.

It is not possible to walk in prosperity and talk poverty. It is not possible to walk in health and talk sickness. It is not possible to be love and forgiveness ruled and at the same time talk bitterness and anger.

Change the words you speak will change the direction of your life.  Words are the rudders that steer your life.

Ship captains know the importance of a strong rudder. Without it, they can never reach their destination. Your tongue is like a rudder on a ship. Whatever controls your tongue, controls your direction and destiny.

Your tongue and your words are the rudder of your life. Joel Osteen

What we say with our words and think in our minds will eventually become what we believe and what fruits our lives will bear. You will eat the fruit of your words. Thus, everything you say should be good and encouraging. Since “your tongue and your words are the rudder of your life.”

“I know for sure that what we dwell on is what we become.” — Oprah Winfrey

This is why it is important that you start saying and focusing on positive things about yourself. You set the direction with your words. Over the long-term, you’re going to become what you’re continuing saying.

Thankfulness is the language of faith! And with faith, you have to speak it before you see it.

“My friends, love is better than anger. Hope is better than fear. Optimism is better than despair. So let us be loving, hopeful and optimistic. And we’ll change the world.” —Jack Layton

Your words set the direction and destination in your life. You will never rise above them, your words. You will become in your tomorrows what you believe and speak in your todays.

You can change the course of your life by changing the words you speak. Start taking notice of the direction your words are steering your life. Words have directions an destinations. Change your words, change your destination.

References:

1. https://www.yourlifeyourvoice.org/pages/tip-101-positive-things-to-say-to-myself.aspx
2. https://www.jonasclark.com/changing-the-words-you-speak-change-the-direction-of-your-life/

Money is not the most important thing in life. But, there are some things in life that are more valuable than money.

There are many aspects of life that are more important and valuable than money. The ancient proverb that “health (and time) is more important than wealth” is absolutely true.

There are things and experiences that are more valuable than financial capital (or money), things that can lead straight to your success and happiness:

Physical Health

Health is something in life that is more valuable than money. The fact is that money can’t improve your health if you eat unhealthy refined sugar and saturated fat laden foods, smoke, get inadequate sleep, and live a sedentary lifestyle.

The money you earn can equip you to sustain your health with a sound healthcare system. But what is the use of all the money if you have no time to take care of your health.

Perhaps money will buy you the best of healthcare intervention. But you have already spent the entire life running after money; it might be just too late to enjoy the wealth you have made.

If you are unhealthy to travel, to see new places, to eat all kinds of food, you can’t enjoy just being with the money you’ve earned. Hence being healthy and taking care of yourself is more important than money.

Thus, it’s more important to get adequate sleep. Sleep is your body’s method of resetting and replenishing itself—including (and especially) the brain. And, get healthy and exercise.

Mental Health

Depression, anxiety, and stress cannot be cured just by having a lot of money around you. Why are even the most successful and wealthiest people committing suicide or even sometimes giving up everything for a simple life. It is because they want mental peace and wellbeing more than anything.

So before its too late, focus on your mental health and wellbeing, as it is more important than having money.

Integrity And Respect

The most important thing that you would want in your life is earning the respect of your family and friends. You must have the integrity to carry on with your work. Being wealthy implies that you are well respected, but the respect displayed for being wealthy is for the money you have and not for the person making it.

Your good deeds and giving back to others will earn you respect. How well behaved and respectful you are, how honestly you carry out your work, that will earn you respect. 

Relationships: Loving Family and True Friends

Many people believe that it is quite lonely at the top. In the rat race to earn the most money and to achieve the highest status, we forget to make room for the ones we love – our family, friends, and people who genuinely care for you.

If you are running behind money, you are going far from your near and dear ones. At your difficult times, it will not be money that would give you relief but the presence of your family and friends near you will. These relationships will take you further than money. Family and friends are the foundation that holds the structure up.  From our mother’s unconditional love to our spouse’s constant emotional support, many of us usually take it for granted.

We need to constantly tell our loved ones how much we appreciate them and let them know that we care about them.  We should also go out of our way to help them, because doing so will allow the family bond to stay strong.

To have real friends who will stand for you, no matter what is actual bliss. On top of that, there a few types of toxic people who can even pull you dow. So money can only buy people who would be fake around you.

Making genuine friends and having them for a lifetime is more important than money.

Happiness and Joy

Some of us feel that money equates to happiness but many Americans take it to the extreme and miss the point.  What ends up happening is that without really thinking about it, many people sacrifice their health and family for potential wealth building opportunities. 

When you work too hard, you are giving up precious family time and also your health as you spend less hours relaxing and resting trying to get ahead.

The real fun is not to own a lot of things that make you happy momentarily but to be content inside out and through experiences.

You can be rooted in visiting your hometown; you do not need a lot of money for that, but merely a will to go back and enjoy. Are all the poor unhappy? Well, not! Some find their happiness in spending time with their loved ones and doing simple things in life. 

In the end, it’s all the small things and experiences in life that make a person feel content and happy within.

Gratitude

Gratitude is a feeling that money cannot buy at any cost. Certain things make a person. They are core values, experiences, your attitude, and above all, the feeling of gratitude for all that you have in life.

If you do not have gratitude, you would not even evolve as a better person. So showing appreciation is much more important than money in your life.

Time

Time is a treasure—the time you set aside not to be wasted, not to be given away. The time you set aside to be invested in something that brings value to your life and to others.

Time is the biggest asset in this world. You can never buy time with money or any other valuable things. 

Those who have time want money, and those who have money want time

You know the funny thing is that most people want what they can’t have and this is usually true across both ends of the time/money spectrum.

Those who are unemployed or have low incomes will strive for more hours or a better paid job while those who are on six figure salaries often moan that they have no time to spend with their friends and family.

Neither of these is desirable and both will ultimately cause unhappiness in your life so the trick is to find a happy medium which leads me to my next point.

A healthier balance leads to a healthier life. You can have all this free time but no actual money to do anything worthwhile or you can have all this money but no free time to do the things you want. The challenge is to find a balance and earn enough money without sacrificing all of your free time.

Greed

Greed can be good and useful when you are greedy for and focused on the right thing.

• Being greedy to spend time with loved ones:  The greed and strong desire to spend more time with friends and family.
• The greed for a hobby: Have the desire to do things that you like the most.
• Being greedy to learn and grow in life and succeed: To be able to learn new skills and upgrade yourself and invest in yourself, rather than your belongings.

Purpose

Having a purpose in your life is the most important thing than anything else. You might have all that you want including, loved ones, money, and fame. But if your life is purposeless, if you don’t hold a cause, eventually you might even question your own existence. So ask what is your ‘why’ and keep reminding it to you. Remember your ‘why’, no matter where you reach or what you achieve in your life. It will always guide you on the right path.

Faith

Faith is an investment that cannot be matched. Money can’t touch it. What if you had a million dollars and no faith? You’d be poor. You wouldn’t be wealthy.

Faith is a mindset and is self-motivation and is understanding imperfection. Faith is free and is what unites people for a better tomorrow.

When life gets tough, it is faith that reassures you that things will get better. When life is going well, it is upholding your faith in positivity that creates happiness.

“Believe in yourself; have faith in your ability.”

Concluding Thoughts

If you put your time and energy into the things and experiences more important than money, the money will follow anyway. All you need is to prioritize and reorganize your time and goals. Rethink what is more important and ask what is your ‘why’.

Money is one side, and all the above are on another. Earning money can help you in a long way, but drawing a line is the solution.

Life is for living and experiencing all things and not just chasing money. Live and love life, be grateful for what you have, and strive to be better every single day, anyway money will follow you.

References:

1. https://alignthoughts.com/life-is-for-living-and-not-just-earning-money-heres-what-is-more-important-than-money/
2. https://www.psycholocrazy.com/5-reasons-why-time
3. https://nsucurrent.nova.edu/2016/02/23/why-having-faith-is-more-important-than-religion/

To live a life with purpose means to live with intent, direction and destiny.

“Living with purpose” means doing what truly matters to you in strict alignment with your values, beliefs and goals. Anthony L. Burrow, associate professor of Human Development at Cornell University says, “Purpose is a forward-looking directionality, an intention to do something in the world.”

When you’re in alignment with your purpose, life feels right. Things seem easy and right, and everything just seem work. You feel alive, passionate, and lit up from within. You aren’t concerned with how to get where you’re going; you’re sure of yourself, even if you’re uncertain at the same time.

The unknown is scary. We feel safe and comfortable with how things have always been. Uncertainty and fear are part of us and will always be there, but they can’t rule you unless you let them; so take action toward your purpose and goals anyway.

A purposeful and happy life consists of moving towards goals that synchronize with your values

To live with purpose, you must awake every morning with gratitude and focus intently on your overall goals, dreams and desires. It’s the ultimate key to success and personal achievement.

Do you have amazing, audacious goals and dreams for your life?

Finding purpose is about being be authentic. It is about finding what motivates you. And pushing and planning to be successful in that endeavor. And then follow that.

Maybe you live with the sole purpose of finding your one true passion, or to help others to learn and grow, or to seek out new adventures and travel the world. Whatever you’re looking for in life or what you’re passionate about is usually your purpose.

“The person who’s willing to give the most wins. The person who’s the most extreme wins. The person who refuses to lose wins.” Andre Norman

Determine the three to five things you live by now, for example:

• I am a NYTimes best selling author,
• I am a civic and community leader
• I became a billionaire, and
• I traveled and experienced the world.

Always remember, important keys to success and personal achievement are a definite of purpose and a burning desire.

Additionally, confidence and belief in yourself are key. Consciously decide that you know what’s best for you. Put your hand on your heart and tell yourself, “I trust my ability to make the best decisions for me.” Do this for every area of life that’s important to you.

It means that you become the golden eagle that soars and it means that you’re allowed to fly and spread your wings. Being a golden eagle means soaring and not settling.

Bottomline, “There is nothing that can’t be done if God is with you.”

A purposeful and happy life consist of moving towards goals that align with your values, beliefs and purpose.

“Every person has a longing to be significant; to make a contribution; to be a part of something noble and purposeful.” ~ John Maxwell

References:

1. https://chopra.com/articles/first-steps-to-creating-a-life-of-purposehttps://chopra.com/articles/first-steps-to-creating-a-life-of-purpose
2. https://www.entrepreneur.com/article/336600
3. https://www.lifeadvancer.com/purpose-driven-life/
4. https://crisp.co/podcast/episode-98-andre-norman/
5. https://www.desire-and-belief.com/napoleon-hills-“six-ways-to-turn-desires-into-gold”/

Accumulating wealth has little to do with an individual’s level of income.

Most of the truly wealthy in America don’t live in Beverly Hills or on New York City’s Park Avenue, instead, they live next door to you and the typical American.

In the bestselling book, The Millionaire Next Door, the authors, Dr. Thomas Stanley and Dr. William Danko, identified seven common characteristics that show up repeatedly among those who have accumulated wealth over the long-term.

If you want to build wealth and achieve financial freedom, it’s essential to study and embrace these seven common characteristics of the wealthy:

Characteristic #1: They live well below their means.

Frugality is the foundation of wealth building. Habits of frugality that are void of luxury-car purchases may not impress the neighbors, but they’re important traits to embrace to build wealth. The goal is financial independence and financial freedom, not the appearance of wealth.

Characteristic #2: They allocate their time, energy, and money efficiently, in ways conducive to building wealth.

The wealthy know how to budget their money, and they know how to budget their time. They anticipate and plan their incomes and expenses. They spend significant time researching their investments. They spend time examining ways to increase their unrealized income; i.e., tax-advantaged investment accounts.

Characteristic #3: They believe that financial independence is more important than displaying high social status.

It’s easier to appear wealthy than it is to be wealthy.

The wealthy understand that conspicuous consumption and high levels of “domestic overhead” carry a highly negative correlation with one’s true net worth. The wealthy aren’t interested in status vehicles or other showy products. After all, it is much easier to appear wealthy than it is to be wealthy.

Characteristic #4: Their parents did not provide economic outpatient care.

Statistics demonstrate that the more financial assistance an adult child of affluent parents receives, the less likely it is that that adult child will become wealthy.

Generally speaking, the more dollars adult children receive, the fewer they will accumulate.

These gifts — whether for down payments or for a grandchild’s private-school education − will, more often than not, simply generate higher levels of consumption. After all, it’s much easier to spend someone else’s money than your own.

Characteristic #5: Their adult children are economically self-sufficient.

Cash gifts from parents to their adult children result in dual outcomes:   They increase the children’s dependence upon the parents for continuing financial support, and they deplete the parents’ financial position.

The authors of Millionaire Next Door found that cash gifts from affluent parents to their adult children serve dual negative outcomes:

• They increase the children’s dependence upon the parents for continuing financial support, and
• They continuously deplete the parents’ financial position.

Characteristic #6: They are proficient in targeting market opportunities.

Finding specific niches and exploiting them is often the key to generating an above-average income. In a nation geared toward turbocharged levels of consumption, market opportunities are created constantly for those willing to supply new products or ideas.

Characteristic #7: They chose the right occupation.

The successful man or woman is a person who likes their work and who can’t wait to get up in the morning to get down to the workplace.

Wealth is generated through talent, desire, and discipline. There are four times as many millionaire entrepreneurs as there are millionaire employees.

There are too many people [employees] today working at jobs that they don’t like.

The successful man or woman is a person who works at a job, who likes their work and who can’t wait to get up in the morning to get down to the workplace. They can’t wait to rise up from bed and get down to their workplace and get the job underway.

Each “characteristic” played an integral part in the means by which these people achieved their enviable financial positions and became The Millionaire Next Door”.

References:

1. https://themillionairenextdoor.com/publications/the-millionaire-next-door/
2. https://themillionairenextdoor.com/2011/08/factor-7-a-key-characteristic-of-the-millionaire-next-door/
3. https://www.mdmproofing.com/iym/7factors.php