Skip to content
Published August 15, 2016

Wealth file #9: 
Rich people are bigger than their problems.
Poor people are smaller than their problems.

This wealth file is all about how ready we are in terms of handling money. This is not about how BIG or small or money problems are BUT how BIG or small we are compared to our problems. 

As T Harv would say, we can only grow to the extent that we do. If we think we are small, then we only do small things. And the problems, especially money problems like bills, mortgages, debts will appear to us as HUGE monsters. 

However if we grow ourselves, then even how big we think problems are like taxes, lawsuits, sudden economic downfall, we are ready to face them because these problems are just small problems compare to our bigger and more confident selves. 
How big is your psychological wallet?
How big is your psychological wallet?
10K income per month + 25K debt per month = BIG PROBLEM

If we are earning 10K per month and we have a 25K per month debt, then this looks like a big problem to us. However, if you grow ourselves, educate ourselves how to handle money, earn more, or get promoted by working harder and then we raise ourselves to earn 100K per month, then the 25K per month debt becomes a “no problem.”

100K income per month + 25K debt per month = NO PROBLEM

Thus the solution really is to grow ourselves first. And one powerful way to grow is by learning, especially financial education!

Remember: We are all containers and each one of us has what we call our “psychological wallet.” This wallet is the preset amount in our minds that we are willing to hold. 

Thus, ask yourself, “how big is your psychological wallet?” 


If a one liter container is filled with 4 liters of water, what will happen? Obviously, it will overflow.

Same thing with us, we have what we call our psychological wallet. If our psychological wallet is set to 10K per month, and suddenly we receive a BONUS of 20K. We unconsciously spend/waste the extra amount to reach the level of 10K because our psychological wallet is only set to hold 10K per month.  

If however for example your psychological wallet is set to 100K per month and this month you are just earning 50K, then psychologically, or something inside you will never be at ease. Your mind will actively think of other ways to earn more because you are not comfortable earning less than what you believe you deserve. 

This is often the case for Filipinos who won the lottery. After a few years or even months, their psychological wallet can not hold the massive inflow of money to their lives. Thus, it overflows from the container: buying houses here and there, cars, lots, starting a business and eventually they return back to their comfortable psychological wallet which is being broke. (Though this might not be true to all, but it usually is the case.) 

However, if the person is financially educated, he can then invest the amount into a low-risk investment and start to be living on interest. 

100M lotto winner.
Invests it in a conservative bond fund earning an average of 6% per year. 
Then, 100M is intact but the person will earn in interest 6 million pesos per year. 

If you won 100M in lottery, what will you do about it? 

Again, how big is your psychological wallet?  

Want to let money work for you? Invest first in financial education. Experience #LifeatIMG. Be a member now! (Click here)

Want FINANCE, BUSINESS and INVESTMENT updates? Make sure to subscribe to our free email newsletter and/or follow our social media accounts.  

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *