Friday, July 3, 2015

How to be financially responsible 101


This is where I am coming from: I grew up working class. We went to the dentist and ate everyday but lived in deprivation and did not have a lot of “stuff”, which is not terrible but having a choice is so much better.

When I came into fists full of cash in my twenties, i had no idea how money worked so I burned through it with nothing to show for it. I used it for a life style, which is a big no-no. A staggering percent of professional athlete millionaires wind up broke when it is all over, hmmm...

I will never forget the time I was talking about money with someone and they said how all of their friends were cute and creative and living impulsively and eventually it all dried up. When they turned 50 and 60 they all wound up living in shitty studio apartments, not by choice. 

Now I am a happy prosperous individual , imperfect and with a few blind spots, but studied enough to be able to share what I know, knowing that it is solid enough that it may help someone. I wish that someone taught me all of this in high school, because it was a long awful struggle to figure it all out but here’s what I got:

Basically you just want to have a healthy attitude, so…

Educate yourself. Read about money and finance and the stock market. Two classics starters I like are Thing and Grow Rich, and Rich Dad Poor Dad. 

Live within your means. Don’t debt, first and foremost, if you cannot afford it, wait till you can, save up. When you live a lie about your income it, wanting to appear like you have more than you do, you are setting yourself up for a fall. And a financial fall can be brutal, and extremely stressful. People divorce over money, people lose friends over money families divide over money and people kill themselves over it, all of which is unnecessary.

There is na actually an order to living within your means which goes:
First save a prudent reserve (a cushion to fall back on and give you security), then save for retirement, then buy a house, after you are secure in your earning and savings that is when you get to buy luxury items. Don’t buy a fancy car until everything else is in order.

Save 10% of everything you earn. I actually suggest putting aside 15%, so you have a fund of 5% you can give away to any thing you want. I have found that here is nothing that makes you prosper more than giving money away. It changes your brain and your attitude from deprivation to prosperity and you get to elevate so many others while you are at it. But that is a whole other blog: http://hollyramoswrites.blogspot.com/2015/01/to-have-and-to-give.html Anyway, never use all of your money to live a certain kind of life style, use it to get you to the next level, to set yourself up.  Oh, and remember that your house in not an asset.

Live well and be smart. Being smart leads to your living better and better.  Being smart about money is so fun, because it gives you choices and ease and lets you help others, which is so cool. It all works out in the end even if you do not have retirement, you will figure it all out, but having choices is so much better than feeling desperate or taking what you get.  Live long and prosper my friends

“Money love well being and ease is attracted to me and flows to be from an unlimited source with greater and greater abundance every day.”


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