Have you been living from paycheck to paycheck? Do you have some money stashed under your mattress? Have you been thinking of ways to grow your finances? Do you practice financial discipline?
Whether you’ve been wishing you were financially independent, or you’ve been living frugally wishing it would make you rich, this might be a good book for you!
The truth is, you don’t have to be a math whiz to make your finances work!
At 25 years of age I’ve gathered my thoughts on personal finance and put them into this short book with the goal of sharing my experience so far.
As far as personal finance is concerned, the most important thing I realized is that managing your finances is not only beneficial to your bank account. It is through proper personal financial planning that you can create a sense of stability that helps you achieve your personal, financial, and professional goals. This is something I truly believe in.
As a worker and beginner investor, and as an average fellow like most, I can honestly say that I’m proud of my professional achievements so far. One of them being the writing of this book, the first of many I hope.
Having purchased my first real estate investment property at the age of 24, I am now in the process of exploring new ways of investing the money I earn. Apart from the real estate investment, I own stocks from S&P 500 companies, I lend money to small companies and individuals using peer-to-peer lending platforms, I have regular savings accounts, amongst other things. And I wrote a book about it to share my views on optimizing personal finance management.
A large part of planning our finances is about anticipating your dreams and needs. Although there is a chance that you already do this to some extent, you may not have thought about what you may need in the next 2, 5, or 10 years to come, right?
Figuring this out is not an easy task! Here, I have put together what I think is helpful information to steer you in the right direction.
In this short book I address the following subjects;
– The basics of personal finance;
– My golden rules of personal finance;
– How to understand your financial situation;
– Thoughts on how to get out of debt;
– Tips on how to save money;
– Passive income 101;
– Tips on how to invest your Money;
The information you will find while reading is based on what works for me. There are no recipes for instant success, just some tips and thoughts that allowed me to achieve my goals and might also help you achieving your own. Therefore, I hope you find this book captivating and that it helps you improving your skills on managing personal finances.
Targeted Age Group:: 30
What Inspired You to Write Your Book?
In the past, I've read some interesting books on these subjects that I thought were helpful and well written.
However, I never felt like I was reading the words of my peers. I always had the feeling that I was listening to the advice of older, more experienced individuals, but not of someone like me, young and inexperienced that faced similar challenges and had just gotten out of the situations I was in.
For that reason, I decided to become the other person. The one who is actually letting others know which strategies worked for me and that others can also try in order to become financially independent!
As you know, the way you spend your money can have a profound impact on your life. It is shocking that very few schools teach critical personal finance skills to young students, leaving future citizens to figure them out the hard way. Don’t get me wrong, I believe in learning by trial and error, but learning the basics of personal finance from an early age would go a long way when it came time to start planning your future.
That said, let’s not forget that learning how to be financially savvy is not an easy task. It takes a lot of time and effort to master how to manage your finances fully. The good thing is that the basics of personal finance are relatively simple and will never change.
Growing up, I presume that you already learned basic math. However, so many people grow to adulthood without really knowing essential money management. These are skills like how to create a proper budget, how to save money smart, what are good investment strategies, or even how to use a credit card. In this book, I will cover these personal finance skills and much more!
When it comes to managing your finances, I truly believe that changing your mindset is the most important thing. What is the story that you keep telling yourself? Trust me, that voice in your head can either be your greatest friend or your greatest foe. Unfortunately, many people play a record in their heads that keeps them from doing great things. In most cases, we want to cite a lack of resources as a justification for us not doing anything relevant. We end up plugging into people and conversations that reiterate that story, and it is time to start changing it.
Take a look at where you are, financially. Are you where you want to be? Are you exploiting your full potential? Well, one thing you need to realize is that you are mostly where you are because of the choices you made. Whether you’re in a great place financially or you’re struggling to stretch your income every month, this is most likely your responsibility. It might be a hard truth, and yes, some things are out of our control, but our financial situation is mainly an outcome of the choices we have made along the way.
No one puts a gun to your head and tells you to live where you live, to borrow money, or even to eat at the places you eat. The sooner you realize that you are responsible for these decisions, the sooner you can understand your financial situation and start heading towards your financial goals. Your family, friends, or employer will not do that for you. You have to do it yourself!
Unfortunately, many people fail to understand the difference between someone who is in a good place financially, and someone who is financially stable. Think about this for a moment…
You have a good job that allows you to live in a wealthy neighbourhood downtown and to drive a costly car. You spend most of your income every month but never struggle to pay the bills as there is even some money left to travel here and there, which you also do. Now, let’s consider another scenario where you have that same job. In this case you leave in a good neighborhood not so close to the center but still pretty close, you drive a new car that is well within you means, and you plan your budget so that you can have some fun but still manage to put some money aside every month.
Fast forward your life 1 year, 2 years, 10 years….
Who would you rather be 10 years from now? Which option do you chose? The second? I chose the third option. The one I didn’t mention…
Option three is the one in which you save some money but, most importantly, you also invest some of those savings. Not all your savings should be invested, don’t get me wrong, that is a myth. Saving money is great! As I said before, having some money aside provides a certain peace of mind that investing with different levels of risk associated may not allow for. But investing is extremely important if you wish to create long term, sustainable wealth. That is the difference between being in a good place financially (option 1 and 2), and being financially stable (option 3). With financial stability comes financial independence and later, if you do it right, comes actual wealth.
And of course, the last person you want to be is the one speeding down the highway of financial troubles buying expensive items that bring you short term satisfaction. Don’t get me wrong, there is absolutely nothing wrong with driving the coolest car in town. However, there are so many of us who do this just so that we can earn another’s approval, to win over attention, which we often mistake for respect! Trust me; there will always be something latest, newest, fastest, fanciest, and better versions of everything. You have to start realizing that this is a game that you will never be able to win. Instead, you will always be in a rat race.
This brings us to the purpose of this book. “How do you become financially successful?”
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