Money - 8 most important things to know about money
The story is a parable with the help of the character Liz Jenner who helps to figure out the correct financial behavior. She earns a nine-figure salary while her husband stays home with the kids.
Liz Jenner is crazy about proper financial management and is ready to explain to you how to become really wealthy people.
Liz Jenner has a full-time position as an IT Manager at a large company. It also earns a sufficient amount, which means a salary of 100,000 $ a year or more. Her husband, Todd, stays home with their three boys, ages 14, 10 and three. Gender has been the main breadwinner in the house ever since, shortly after the couple married 16 years ago. Proper financial management has always been her hobby since she was a teenager. She says that as far as she is concerned, everyone must know how to keep track of their net worth, invest their savings and adjust to their economic and dream goals. Now she has decided to tell us all she knows about proper financial planning, savings, and investment management, and big on how to become wealthy people. In an article in Business Insider, she shares these tips about keeping your money and fulfilling all your dreams.
Liz Jenner is crazy about proper financial management and is ready to explain to you how to become really wealthy people.
Liz Jenner has a full-time position as an IT Manager at a large company. It also earns a sufficient amount, which means a salary of 100,000 $ a year or more. Her husband, Todd, stays home with their three boys, ages 14, 10 and three. Gender has been the main breadwinner in the house ever since, shortly after the couple married 16 years ago. Proper financial management has always been her hobby since she was a teenager. She says that as far as she is concerned, everyone must know how to keep track of their net worth, invest their savings and adjust to their economic and dream goals. Now she has decided to tell us all she knows about proper financial planning, savings, and investment management, and big on how to become wealthy people. In an article in Business Insider, she shares these tips about keeping your money and fulfilling all your dreams.
When I was 16, I took from the library a book called "The Rich Hair Designer" written by David Chilton. This book has changed the course of my financial life. Like most teenagers, I thought only the famous and over-the-top were rich. Ordinary people can't get rich, can they? The title of the book is what attracted me, like millions of others. How on earth can a book become rich?
It was a fun and inspiring book, not at all dry and boring. He told the story of some friends who teach important lessons about rich money and the people who go around the barbershop for a period of a year. I learned from him all the basic lessons about money, ones that are not usually taught in my youth. He covered real estate, mortgages, taxes, pensions, investments, college education, savings and more. He inspired me to live a life of passion for personal financial management. Apartment When I was 20, I started saving my boys for college as soon as they were born, and on and on.
Over the years I have built solid financial foundations and firm management of our finances. I've read hundreds of books, blogs, magazines, and articles on money management. Here are eight of the most important things I have learned over the years about substantive personal financial management.
1. Don't rely on your partner to manage the money
Many women do not receive important lessons about managing their money in the same way that men win. But it is really critical that they are involved in their financial affairs. Fifty-six percent of women leave financial management to their spouses, 85 percent of whom are confident they understand much more about financials. But women also live longer than men, more than half of the marriages end in divorce. And probably eight out of ten of us will find themselves sometime in their lives solely responsible for their money. Trusting someone else to do this could be a recipe for disaster. Being in the dark about where your money is, where it goes and why is not the way. But when you want to take responsibility for the subject, where do you start?
2. Know where your money is, where it is going and why
The first step to being smart about money is to know where you are right now. You can't make a financial change without knowing it. I have been tracking my net worth since the age of 20.
Today I am 38. We often do not appreciate enough how much can be achieved in a short time and how long. There are basically three things you need to know:
What do you have (including debts): This is called net worth, such as a balance sheet report in a business corporation. That's all you're worth, less what you owe. It is worth documenting which accounts are in the money, how many are there and what you are investing. It's not a budget, but a kind of analysis of where your money goes each month. What you spend on each section. You can do this with free tools like mint or keep track of your bank's credit reports. Why is your money where it is, why is it invested or not invested one way or another? Even if you have a partner who already knows all the answers, it's important to sit together and understand the details alone.
Down the road, you will need to keep track of your expenses and make adjustments accordingly. I check my financial situation in depth every three months and spend every day.
3. Set your goals or dreams
What are your ultimate goals and dreams? Where do you want to go in life? This is something to think about. Do you want to start a business? To finance a school or apartment for children? Maybe learn for yourself or retire early? Want to buy a home or any other property? Maybe even travel around the world?
Knowing Your Dreams is a money-related tip because without clarity on your goals, you will not be able to make your money work effectively for you, work and invest effortlessly. When you are clear about where you want to go, it will help you in the long and hard way to get them. The question "why" is what will keep you moving forward.
4. Prepare for yourself a stable economic base
When I was 32, I learned how important it is to build your dreams on a sound financial footing. My husband almost died from acute infection after surgery, he was on the floor for a week and rehabilitated for a month. He hasn't worked in over a year. Our income has plummeted and spending has gone up. What saved us from bankruptcy was the insurance, that we live below our capabilities, and the money we saved in case of an emergency.
No one thinks his house will burn or he will get sick and be unable to work. But unexpected things call perfectly ordinary people. Everyone, even if they are healthy and careful. And when that happens, the last thing you want to think about is money.
5. Adjust your spending to dreams
You will need to check cold and cut how your financial situation is in sync with your dreams. Many times there is a disconnect between where your money goes and what you want to achieve in life. Maybe you want to go on a pricey trip, but you didn't save anything for it and you eat out for 2,000 $ a month? If you are like most people, your money today is not being used to bring you to your dreams. In fact, he incites you from them by wasting things that aren't really meaningful to you. If you value more vacation around the world than upgrading to a smartphone, a newer home than expensive clothing or education over an expensive car - make sure your expenses reflect that.
6. Learn about investments and get started as early as possible
Investing is the way to achieve big, long-term dreams. A lot of people are afraid of the capital market, it looks dangerous, there is so much information and it is unknown if it is true. But leaving your money in a savings account won't really get you to the big cause. So where do you start? Read more articles on money, personal financial management, investments, pensions, etc. There are other appropriate investment management tools, check out what is right for you. You will eventually want to start with a simple and easy strategy that will allow you to invest a little in the capital market. You can always complicate matters later. Most important to start.
7. Make sure you and the partner are in full agreement
A family working at the same time on different goals will not succeed. If you dream of starting a business but your spouse doesn't want you to leave your day job, then it's not going to work. Suppose the spouse wants to retire early and buy a home in the wild, but you're not in the right direction - that would be his. If one of you wastes and the other wants to go right to fulfill his dream - you're in trouble. Many times divorce is associated with financial problems. The fights over money are not really about money, but about a conflict between the goals of each party. It's important to discuss it together, listen, compromise.
We've kept you updated on your financial situation together, talk about how you feel about each other's dreams and your economic progress, work together to change what's not working.
8. Don't raise hands
Reaching goals and fulfilling dreams are not something that will happen overnight. Depending on your current situation, it may take years to establish an economic foundation and more years to fulfill the dream. People don't really get rich quick and easy - they actually lose their money quickly and easily. Anyone who's learning about money - writers on financial matters, people who do podcast or YouTube in the field will tell you it's a long and hard way, but it's totally worth it. After all, if we give up, we give up, we will not try to control and manage our financial situation - surely we will not fulfill our dreams. But if we continue, then it may be that it is.
What do you think?
It was a fun and inspiring book, not at all dry and boring. He told the story of some friends who teach important lessons about rich money and the people who go around the barbershop for a period of a year. I learned from him all the basic lessons about money, ones that are not usually taught in my youth. He covered real estate, mortgages, taxes, pensions, investments, college education, savings and more. He inspired me to live a life of passion for personal financial management. Apartment When I was 20, I started saving my boys for college as soon as they were born, and on and on.
Over the years I have built solid financial foundations and firm management of our finances. I've read hundreds of books, blogs, magazines, and articles on money management. Here are eight of the most important things I have learned over the years about substantive personal financial management.
1. Don't rely on your partner to manage the money
Many women do not receive important lessons about managing their money in the same way that men win. But it is really critical that they are involved in their financial affairs. Fifty-six percent of women leave financial management to their spouses, 85 percent of whom are confident they understand much more about financials. But women also live longer than men, more than half of the marriages end in divorce. And probably eight out of ten of us will find themselves sometime in their lives solely responsible for their money. Trusting someone else to do this could be a recipe for disaster. Being in the dark about where your money is, where it goes and why is not the way. But when you want to take responsibility for the subject, where do you start?
2. Know where your money is, where it is going and why
The first step to being smart about money is to know where you are right now. You can't make a financial change without knowing it. I have been tracking my net worth since the age of 20.
Today I am 38. We often do not appreciate enough how much can be achieved in a short time and how long. There are basically three things you need to know:
What do you have (including debts): This is called net worth, such as a balance sheet report in a business corporation. That's all you're worth, less what you owe. It is worth documenting which accounts are in the money, how many are there and what you are investing. It's not a budget, but a kind of analysis of where your money goes each month. What you spend on each section. You can do this with free tools like mint or keep track of your bank's credit reports. Why is your money where it is, why is it invested or not invested one way or another? Even if you have a partner who already knows all the answers, it's important to sit together and understand the details alone.
Down the road, you will need to keep track of your expenses and make adjustments accordingly. I check my financial situation in depth every three months and spend every day.
3. Set your goals or dreams
What are your ultimate goals and dreams? Where do you want to go in life? This is something to think about. Do you want to start a business? To finance a school or apartment for children? Maybe learn for yourself or retire early? Want to buy a home or any other property? Maybe even travel around the world?
Knowing Your Dreams is a money-related tip because without clarity on your goals, you will not be able to make your money work effectively for you, work and invest effortlessly. When you are clear about where you want to go, it will help you in the long and hard way to get them. The question "why" is what will keep you moving forward.
4. Prepare for yourself a stable economic base
When I was 32, I learned how important it is to build your dreams on a sound financial footing. My husband almost died from acute infection after surgery, he was on the floor for a week and rehabilitated for a month. He hasn't worked in over a year. Our income has plummeted and spending has gone up. What saved us from bankruptcy was the insurance, that we live below our capabilities, and the money we saved in case of an emergency.
No one thinks his house will burn or he will get sick and be unable to work. But unexpected things call perfectly ordinary people. Everyone, even if they are healthy and careful. And when that happens, the last thing you want to think about is money.
5. Adjust your spending to dreams
You will need to check cold and cut how your financial situation is in sync with your dreams. Many times there is a disconnect between where your money goes and what you want to achieve in life. Maybe you want to go on a pricey trip, but you didn't save anything for it and you eat out for 2,000 $ a month? If you are like most people, your money today is not being used to bring you to your dreams. In fact, he incites you from them by wasting things that aren't really meaningful to you. If you value more vacation around the world than upgrading to a smartphone, a newer home than expensive clothing or education over an expensive car - make sure your expenses reflect that.
6. Learn about investments and get started as early as possible
Investing is the way to achieve big, long-term dreams. A lot of people are afraid of the capital market, it looks dangerous, there is so much information and it is unknown if it is true. But leaving your money in a savings account won't really get you to the big cause. So where do you start? Read more articles on money, personal financial management, investments, pensions, etc. There are other appropriate investment management tools, check out what is right for you. You will eventually want to start with a simple and easy strategy that will allow you to invest a little in the capital market. You can always complicate matters later. Most important to start.
7. Make sure you and the partner are in full agreement
A family working at the same time on different goals will not succeed. If you dream of starting a business but your spouse doesn't want you to leave your day job, then it's not going to work. Suppose the spouse wants to retire early and buy a home in the wild, but you're not in the right direction - that would be his. If one of you wastes and the other wants to go right to fulfill his dream - you're in trouble. Many times divorce is associated with financial problems. The fights over money are not really about money, but about a conflict between the goals of each party. It's important to discuss it together, listen, compromise.
We've kept you updated on your financial situation together, talk about how you feel about each other's dreams and your economic progress, work together to change what's not working.
8. Don't raise hands
Reaching goals and fulfilling dreams are not something that will happen overnight. Depending on your current situation, it may take years to establish an economic foundation and more years to fulfill the dream. People don't really get rich quick and easy - they actually lose their money quickly and easily. Anyone who's learning about money - writers on financial matters, people who do podcast or YouTube in the field will tell you it's a long and hard way, but it's totally worth it. After all, if we give up, we give up, we will not try to control and manage our financial situation - surely we will not fulfill our dreams. But if we continue, then it may be that it is.
What do you think?
Comments