“The number one problem in today’s generation and economy is the lack of financial literacy.” – Alan Greenspan
Can you imagine not being able to read the words on this page?
Sadly that is how many of us are when it comes to money management, it’s something we don’t fully comprehend. Most of us did not learn money management in school. As a consequence, as adults we oftentimes make financial missteps when it comes to money. I want to cover this section because it’s important to understand that in order to earn more and keep what you earn, you have to learn right now how to manage what you’ve got. Tell yourself, “When I begin to manage money well, then I will get more money to manage.”
First you need to know what your finances look like. You need to figure out how much money you are bringing in each month and how much money is going out. A really good book that helped me and that I recommend is by Dave Ramsey. The title of his book is The Total Money Makeover: A Proven Plan for Financial Fitness. He offers excellent tips on how you can get rid of your debt in a systematic way. You want to be in control of your money, don’t let it control you.
Secondly, you need to identify any limiting beliefs you have about money and get rid of them. Like everything else in life, financial success starts in the mind. What you think about comes about. So if you think you really don’t deserve more money, what you think will come true. Instead believe you can earn more and that you deserve it.
In life, we get what we focus on. If you focus on money management, the better you will become at managing it. Do you think Donald Trump, Oprah and Bill Gates are good at managing their money? You’d be right. I heard that Oprah still signs every check for each employee. She most definitely manages her money well. You need to start doing the same. If you want to be rewarded financially in the workplace, you have to become conscious.
Action Item: Find out your net worth. How many assets do you have minus your liabilities (expenses). Determine how much money you need to retire. Become aware of what you are spending and saving.