December 9, 2023

Fundamental Money Lessons

The first lesson is having the right money mind-set the way you think about money is extremely important to your financial outcomes, money and personal finances should not be intimidating or something you don’t think you have absolute control over, you must maintain a positive and optimistic perspective and take full control of your financial future.
The second lesson is set clear financial goals setting financial goals will provide something specific to work towards and ultimately drive you to do what it takes to achieve it, consider making your financial goals smart specific, measurable, actionable, Realistic and Time bold, for example a smart financial goal could be saving 50 thousand by down payment on a home by putting away 20 percent of your salary for the next five years.
The third lesson is paying yourself first, this can be difficult as we often want to prioritize paying bills and other expenses before we put aside money for self, but think about this, if you don’t put yourself first, who will? Establish a specific amount and make it a priority that before you pay anything at all you pay yourself and great approach, doing this is coming up with a percentage for yourself and applying that percentage to your gross income which is your income before any deductions are taken out.
Lesson number four is live below your means, with the prevalence of debt these days it is so easy to live way beyond your means living above your means is maybe the most guaranteed route to financial disaster, simply spend less than you earn and save and invest the excess.
The fifth lesson is avoiding debt even worse than spending all the money you earn is spending more than you have, this is made possible through the use of debt particularly the most popular and arguably the most dangerous credit card debt, beyond the opportunities for using debt to build wealth tried to avoided at all costs.
Lesson Number six is make your money work for you, think of each cent that you can put aside as a little worker that is able and willing to make you more money, investing is how we get this work started to build wealth.
Lesson seven is start as soon as possible, remember the power of compound interest and start saving and investing as soon as you can, the earlier you start the more time your money has to grow and take advantage of compound.
Lesson number eight is invest in yourself, investing in yourself should be an absolute priority and can have huge payoffs down the road, grow your knowledge build your skills and actively seek out the vast opportunities which exist, results from this very important investment may not be immediate, what can have huge impacts on your future.
The Ninth lesson is boosting your earnings; always seek ways to make more money. Whether it is a raise at work side hustle or starting a business there are so many opportunities out there to make some extra bread, it will just take work and dedication.
Lesson ten monitor your finances and plan implement good budgeting practices and stay in tune and in control with your personal finances, also as your life circumstances change plan adjustments will need to be made to ensure that your goals stay on track.
The final money lesson, Lesson number eleven is protect your finances, complete financial plan includes provisions to protect your finances and your future, life insurance disability, insurance emergency funds and general estate planning are key to ensuring that the wishes for and obligations to yourself and loved ones are met, despite tough circumstances.

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