Personal Finance principles
Many Canadians are financially illiterate. However, that is not your fault. Personal Finance 101 is not offered as a standard curriculum in our schools, high schools, or even in the best universities although it should be. Despite this, with a little bit of determination, financial independence can be achieved.
This is your chance to be financially FREE.
This is NOT another “gimmick” showing you how to get rich in 3 months without hard work. The lessons here will give you the chance and the knowledge you need to change your financial situation and this process is not a 1 year solution but a lifetime guideline. To get there you need dedication and maybe to wrestle with a few fears along the way. The alternative only offers that your next ten years will look just like the last ten years; While change may not be easy, it will be WORTH IT.
Why do many people not achieve their financial goals?!
The most important thing anyone can do to solve their financial challenges is first believe that it’s possible. Many people simply don’t make the effort to learn how to manage their money.
There are several reasons for this, and a few are listed below. Does one or more of these apply to you?
Buying on credit
Not saving soon enough for retirement
Not doing your homework
Making decisions based on emotion
Not separating the financial fluff from the financial fact
Exposure to excessive risk
Although these are real reasons, the main reason for not achieving your goals is lack of “willpower”. Average people focus on obstacles. Successful people focus on opportunities.
You don’t think you have enough money.
You might say that you live paycheck to paycheck and you don't have enough money to survive. Right? Wrong! The reality is if you spend money then you have money to save. Everybody can find ways to free up money — no matter how tight it is!
You don’t think you have the time.
You might say that your life is busy balancing the demands of work, family, friends and Facebook.
Books on money management and personal finance can be three inches thick. Then you might say you can’t afford to take the time to learn about money. Right? Wrong! The reality is you can’t afford not to!
You don’t think you have the knowledge...
Many people think the rich know something more. They don’t. People think there are techniques or methods that trained advisers dole out for hefty fees, techniques that simply aren't available to someone making $36,000 a year. Right? Wrong! The truth is, the same money management techniques the wealthy use are available to everyone. The reason people who have personal money managers often do well is simply that those managers know and apply the basic rules of how money works, and know the keys to financial freedom are discipline and patience.
The only thing you need is discipline & patience.
Discipline has a bit of a negative connotation that implies you have to force yourself to do the right thing but unfortunately we have to go through discipline to eventually make our actions a habit. Much of the discipline you have to apply to reach your financial goals has to do with controlling your spending. This discipline isn't as much fun as blowing all your cash the second it lands in your pocket. Just imagine, however, the excitement you can enjoy watching your investment grow. In order to accomplish your financial goals, you must commit to the following three basic principles:
1- Spend less than you earn.
2- Save what you do not spend.
3- Invest what you save.
Very simplistic! I know, but this is the foundation of financial freedom and the hard part here is to make your bad habits into good ones and for that you need to be patient. If you have the drive to succeed and the determination to get there, you will be able to take care of your future.
Catch 22 conundrum: Which came first the chicken or the golden egg?
Should I start by paying my debt with money I saved or should I start by saving money to pay my debt!? As you will see one of the first steps for financial freedom is having a “G.O.O.D.” plan. Keep reading to find out how to pay off your debts with money you think you don’t have.
Remember: Paying off your debts go hand-in-hand with the habit of saving.