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đź“Ś Lesson 1: The Mindset Shift (Spenders vs. Savers)
đź“ş Recommended Video Resource
Learn more about transitioning from a Spender to a Saver mindset with this financial coaching video from IMG Advocate, Dr. Jaime Lorenzo:
Click the image above to watch the video on YouTube: Money Tips: 6 Steps para Umasenso I IMG Financial Coaching
To build a secure financial future, the very first step isn’t tracking your expenses or picking stocks—it is changing how you view money. You must transition from a consumer mindset to a wealth-building mindset.
🆚 Spender’s Formula vs. Saver’s Formula
Most people stay trapped in financial stress because they use the wrong formula to manage their hard-earned income.
❌ The Spender’s Formula
\(Income - Expenses = Savings\)
- How it works: When income comes in, you immediately pay your bills, buy groceries, go out to eat, and spend on lifestyle desires. Whatever is left over at the end of the month goes into savings.
- The Problem: In reality, there is rarely anything left over. This formula guarantees you stay stuck paycheck-to-paycheck.
The Saver’s Formula (The Prosperity Formula)
\(Income - Savings = Expenses\)
- How it works: The moment you receive your income, you immediately take out a percentage (ideally 20%) for your savings, healthcare, and future investments. You “pay yourself first.”
- The Benefit: You learn to live comfortably on the remaining 80%. This simple shift automates your wealth building.
⚠️ Avoid the Lifestyle Traps
Many hard-working professionals make the mistake of letting their expenses rise every time their income increases. This is known as lifestyle inflation.
To protect your hard-earned income:
- Distinguish Needs vs. Wants: Before buying, ask yourself if it protects your future or just provides temporary comfort.
- Automate Your Savings: By using the Saver’s Formula, you remove the temptation to spend money that should be building your foundation.
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