Now that Christmas is over, remember that it is not about the gift itself but about the thought that went into it. With our New Year’s resolutions right around the corner, we decided to share some Money-Guy insights with our listeners. Sometimes age changes how we look at life and financial planning. It’s so important to enjoy the smaller things in life. Here are some keys we feel are important to remember:
Money Truths and Financial Life lessons:
- In the early stages, accumulation > allocation. The hard part of being financial independence is the saving part. Put more emphasis on your savings rate than your rate of return!
- Toys bring more toys and nice things require nice maintenance. Just remember, nice things come with a price. You must remember the true cost of expensive things. Don’t try to ‘feed the beast’ because human nature has an insatiable appetite. It’s just human nature to want more things, and we have to recognize those weak spots and keep ourselves in check.
- Investing is a means to arrive at a solution. Investing is a side mechanism to being a saver. Just setting up the account is not all you need to do…you need to continue saving to build wealth.
- There is no such thing as “easy” money. If it seems too good to be true, it probably is.
- Give it away and it comes back to you. Put The Golden Rule into practice. Generous nature will return to you. People like working with generous people, it just warms the soul.
- Most financial transactions are negotiable. Sometimes just asking for a discount is all you need to do. Most financial matters are common sense; they don’t have to be complicated. Keep it simple. We try to give you tools to help you have an advantage financially.
- Not all decisions are purely mathematical – Just because it makes sense mathematically, doesn’t mean it will give you peace of mind. Decide what will make you feel secure and happy and include those things with your decisions.
- Set financial goals and be a planner. You have a plan for how you will reach the next step. Change your plans to make your goals happen. Set a goal of what you want as far as income and work hard to make the dream come true. You can’t reach big goals unless you dream big. Get your hands dirty now for the goal in the future. Write it down on paper – it makes things happen. Don’t forget to reward yourself when you reach a goal. Involve your significant other in your goals because these plans include both of you.
- Understand what generates happiness – Take the road less traveled. Money is the side effect to doing what you love. Figure out what your best skills are and work hard to use those skills. It is amazing to see someone truly enjoy what they have worked hard for. The ability to touch lives can create a lot of happiness for you.
- You can’t take it with you, so make sure to make good memories. Enjoy yourself now and generate good memories. Travel as much as you can and spend time with those closest to you.
Some other things to remember –
-Defer gratification for now and always pay yourself first.
– Live below your means. Social Security is not guaranteed for the future.
– Don’t fake success. It takes time to be financially successful if life.
– Don’t try to compare to others that seem successful. Not all situations are as they appear.
– Instill independence in your children.
– Always be a student in life. Don’t think that you have it all figured out. Keep learning!
– Be a planner and have a goal. Try to think 5 years into the future.
Try to always be generous as well as thankful. Good things will come back to you if you live out these qualities. Have a big dream, give to others and see what a happy life you can have.
Happy New Year from The Money Guy family to yours!