Yet these same people will talk about their medical conditions, sex lives, and relationships.
I was taught and grew up in a household where we never discussed money.
Yet every day you deal with it.
You earn it.
You spend it.
You should be investing and saving it.
This doesn’t happen accidentally; it’s on purpose and should be taught.
I believe that everyone ought to learn personal fiscal responsibility.
Not teaching yourself/family and not helping those around you (assuming you know what you’re doing) is poor form and irresponsible.
This article will outline three different tips that will help you master money.
There are many reasons that people hold this belief that money shouldn’t be discussed. Among them are:
- Fear – The lack of understanding of money and how it works can scare people.
- Scarcity – For some, money is so tight that people just don’t want to deal with it.
- Mistrust – Many folks just want to remain under the radar.
- Not wanting to be boastful – Talking about wealth is really crass, especially when it’s done in a one-upmanship sort of way
Many people are of the mindset that you should save and have a sound and strict budget. This isn’t an erroneous way of thinking and I will address it later in the article. What I have found is that a number of people are not considering ways to diversify their income and find new avenues to bring more revenue into the home.
I’m an entrepreneur with a few different streams of income. I had to think outside of the box and create a lane that would allow me to use my experiences, education, and skills in a method that would help me make more money. You can do it too and it can be done in 4 specific ways:
Get a side Job: Look at your schedule and see how many hours you can work. There is an abundance of opportunities that exist that will help you make more money.
Start your own business: It’s not easy; I will never lie to you. With that being said, it can be done. Get a business mentor and do some research. There is a need out there that needs to be met and people are willing to pay for it. Tap into your creativity and get it done!
Find a better job: This is not as easy as it sounds, but it can be done. What’s key is that you remain persistent and driven. Go out and network. This is where you can really see the value of being sharply dressed. When you are networking, you will stand based on your classic and timeless style.
Change Industries: This may require you to get additional skills or education. Both those often cost money but there care creative ways to finance it. Also, don’t forget about avenues such as internships and volunteering in order to gain more knowledge in a new field.
Embarking on such changes can be daunting and downright scary. In order to squelch that fear, you need some help. Ramit Sethi created a series of programs and guides that will help you learn how to grow your earning power. Most notably, Zero To Launch and Dream Job are really great. Once you graduate from these programs, you will receive free access to my $500 Personal Image Blueprint.
Tip 2. Learn How To Budget
This is common knowledge but not as common in practice. A survey in 2015 which found that 28% of Americans don’t have a dime in their savings while 21% of Americans don’t have a savings account at all.
Saving can be difficult. It takes commitment and sacrifice. So let me give you some shortcuts that will make it easier.
- Bank at a financial institution that will allow you to have multiple savings accounts – All of your income will go into a main checking account and it’s then distributed to outlying savings accounts. Each of the savings accounts is for a designated recurring expenditure. For example, one savings account is for Christmas and another is for car maintenance and gas. Still other accounts can be for a big purchase such as a vacation or a home.
- Track your funds in Gamify by using the Personal Capital app where the balances and statements of all of your bank accounts are housed. It takes the stress out of managing multiple bank accounts over various platforms.
- Teach your children or others who don’t know – Parents and caretakers, it is your responsibility to give your wisdom about the importance of creating a budget and sticking to it. You can use childhood stories like The Three Little Pigs or The Ant and The Grashopper to illustrate budgeting and saving in a way that they can understand.
Tip 3. Have People That Will Help You Invest
Investing is a fantastic way to increase your net worth. It can take your existing income and increase it exponentially at times. There is risk involved so you want to have people at your disposal who are educated and trained to assist you while you are developing your portfolio. Four nuggets that will help you do this are:
- Find A Great Accountant – Many people do their own accounting but when you start having multiple streams of income or significant income increases, things can get tricky. Accounting laws change consistently and Certified Public Accountant will stay on top of all of the changes. They will also help with Tax Planning which is the art of planning or arranging your affairs in ways that postpone or avoid taxes.
- Find A Great Financial Advisor – This person is licensed and educated on financial securities (mutual funds, retirement accounts, insurance, etc.) as well as the stock market. Working with a financial advisor can help you understand the risks of playing the market and guide you toward making sound investments.
- Mastermind of other successful people that you can talk money with – This is a group of “advisors” that can walk you through their paths to success in investing and help open your eyes to other opportunities. A group such as this is great for accountability and motivation. Experiencing the success of other can drive you toward a greater success level too.
Gent’s remember money is not my god – it’s just an essential life skill. Money is a tool to get where you want to be so that you can solve a lot of small problems and free up time to focus on the BIG issues such as:
- Like staying healthy.
- Spending time with my kids in a modern society
- Building meaningful relationships with friends.
- Contributing to causes that work to reduce suicide and help vets.
The bottom line is that teaching financial management and wealth building skills are paramount to having a successful life. I want you all to succeed and I believe that doing these steps will set you up to do just that.