I’ll be honest with you—everybody worries about money. Whether you’re working a 9 to 5 on minimum wage or you’re a multi-millionaire running several businesses, money is a stress point. But the issue isn’t always money itself. It’s our emotional response to money that creates instability.
As Warren Buffett once said, “Unless you can manage your emotions, don’t expect to manage money.” I take that further—unless you can manage your emotions, don’t expect to manage anything. Emotional volatility is the root cause of many poor financial decisions.
You want more emotional control? It starts with one change: pay yourself first. Most people get their income and pay the butcher, the baker, the candlestick maker—and if there’s anything left (which there usually isn’t), they might save it. Wealthy people do the opposite. They pay themselves first, in the form of savings. Then they handle their bills.
Start saving just 10% of your weekly, fortnightly, or monthly income. This habit alone builds a financial cushion that brings peace of mind. Human nature can emotionally handle about a 10% swing in income without major distress—that’s the plus-or-minus 10% rule. If you lose or gain 10%, you don’t panic. Go beyond that, and you either spiral emotionally or become overly euphoric—and that’s where bad decisions begin.
Let me illustrate: If you invest $100,000 and gain $9,000, you’re pleased—but not jumping for joy. If you lose $9,000, you’re annoyed—but still rational. Now if you lose $50,000? That’s when fear, panic, even depression kicks in. You might start gambling with your money just to recover your losses. Likewise, if you gain $50,000, you might feel invincible—and start making arrogant decisions beyond your real capability. Either extreme can derail your financial journey.
I once met a couple who came to our office after selling their family home to bail out a struggling business. They were sitting on $1.1 million in cash and $780,000 in super—but were still renting. The husband wanted to go all-in on property investing. Four to six properties—fast. But something felt off. His wife sat quietly, arms crossed, clearly uneasy.
I asked a simple question: “What are you guilty about?” His wife looked at him. Silence filled the room. Then the truth came out—he’d gone into a business she warned him about, and they losttheir family home as a result. His property investment frenzy was a form of emotional compensation—trying to undo the past quickly.
I gave him some advice: slow down, manage your emotions, then manage your money. Theybought one investment property in their name and one through a self-managed super fund. Nine months later, with a calmer, more stable outlook, they returned and bought two more.
The lesson? Your emotions can make or break your wealth.
Save your money now, because one day your money will save you. That 10% savings habit isn’t just about finance—it’s your emotional safety net. If you want clarity, stability, and wealth, it starts there.
And as always, a better world starts with a better you. See you at the top.