Let’s Discuss in detail 4 key steps for becoming Financially Savvy
We’ve all seen friends who are a wreck when it comes to money stuff. It goes beyond simply being dumb with dollars. For many, the craziness also contains a lack of awareness or self-control. If nothing else has worked, try these five sensible steps for becoming financially savvy:
Step One Towards Becoming Financially Savvy: Pay yourself first
It’s a winning formula, pay yourself first from the pay salary. Have money from your salary taken out of your main bank account the day it arrives into a separate account. Don’t rely on yourself to remember to set an automatic transfer on the day payment arrives. Now, what are you going to do with this “hot” money?
Step Two Towards Becoming Financially Savvy: Fake it until you make it
What do all financially successful people have in common? They are all investors. Every. Single. One.
Are you an investor? You’re not? Right. Starting small is fine. Just Do. It.
Do whatever it takes to get yourself started in investment. True wealth requires investment. Even if you’re investing $100 each and every month (I hope it’s way more), then at least you can say “yes, I’m an investor”, even if it might feel a little fake at first. But it’s got to hurt a bit. Pain, then pleasure.
Sounds a little masochistic, sure.
Step Three Towards Becoming Financially Savvy: Long-term investment
Yeah, that seems insane. Especially anyone under 45, they all want to get rich quickly. However, paying attention to your investment daily can be harmful as most investments are long term & you should avoid looking at them daily.
Growth assets, long term, are likely to grow faster.
Does that seem a little unbalanced? Good. You’re learning.
Step Four Towards Becoming Financially Savvy: Don’t fear the gear
Many people have a pathological fear of debt. But debt is not the devil. Used wisely, to buy quality assets, it can be a powerful force for positive (mental) financial well-being.
Warning: borrowing to invest is not for everyone. It is right for some people.
Paddy Boyal is the author and is a mortgage broker & was a licensed financial adviser. M: 0420 589 194 E: paddy.boyal@southeastwealth.com.au
Step Five Towards Becoming Financially Savy: Repeat Steps One to Four
Disclaimer: – Articles in this blog are just the personal opinions of the author or authors.
It may or may not be correct. Pls do your own due diligence and pls seek professional advice according to your own personal circumstances. The author or authors cannot be held responsible/liable for any content in this blog.
