Monday, 28 November 2011
No Romance Without Finance!
How good are you at managing your money?
I have my moments, however overall my inconsistencies lead to sentiments of frustration. Whether it be the occasional impulse buying or the mere fact that I am just not saving enough, my inability to effectively manage my finances led me to asking a friend (that is a good FA) for help!
He did so with reluctance, not wanting to 'mix business with pleasure' so to speak. However he eventually agreed. He assessed my situation, broke it down and said there is hope! However I needed to prepare myself to work for another 17 years for an employer and save $10000 a month to be able to have the amount of money I want to have when I retire. Shock horror (ok maybe I can compromise on my retirement sum but why should I)?
I have no intention of being an employee for that long, so suffice to say that was a kick up the backside and a trigger for me to apply the adage 'Do what you have to do, to do want you want to do.' ~ Denzil Washington.
In my friend's bid to assist me on my journey to financial freedom he introduced me to a little pot of gold:
I am absolutely loving this book! I would recommend it to everyone but particularly those of you that need practical tips on improving your financial situation. Even Warren Buffett recommends this book. He is also well known for applying the basic principles in his life..
The five key principles once applied will make such a drastic difference if they are strictly adhered to, it makes me wish I had been given this book 20 years ago.
It is funny how different people regard money. An acquaintance made a comment last week. She said she was glad that she was poor. Glad to be alive, healthy, have a wonderful family, book smarts, gleaming white teeth, yes I can comprehend that, but glad to be poor I just had to shake my head. For one thing, she probably doesn't know what poverty is, and two, only someone who has a poor person's mentality would make such a statement.
Do not get me wrong, I do not look down on people that are earning less than I, and one man's definition of rich vs another's is relative anyway. However a comment like that shows a lack of wanting to be better than you are financially. Who in their right mind wants to be struggling to make ends meet, to pay bills, to eat a good meal? Need I say more....
For me personally, on this journey to seek a better life for myself, yes money does play a significant role. Not just for superficial reasons, but also to enable you to benefit from the opportunities that having a decent financial standing can bring.
A lot of what I am trying to achieve is also for my son. I want to leave him a legacy. While teaching him to earn and maintain his own financial standing I also want to give him a foothold on the ladder of financial success. I don't ever want him to struggle financially, I expect him to do better than I have, much like I have done better than my parents.
If I can leave this world and leave him and his family and his family's family well off, I will feel like I have achieved my goal. It took me far too long to value money which meant that I also had a poor man's mentality. I may never have Warren Buffett's billions, but I will be in a position where my debts are paid, and I am financially free!
We all have differing levels of what we deem as being the right amount of money for us. However we should all aim to not have to 'struggle' and subject ourselves to a self inflicted circle of financial doom. As we do have choices.
For sure there are some that are in a bad situation that is circumstantial. However if more of us applied the Basic Principles provided within the Richest Man In Babylon, we would have a safety net in hard times.
I am really interested to know how others find this book. I will also keep you posted on my progress as I start on my express journey to financial freedom. You know, life is tough when you don't have enough! Your focus is on paying the next bill as opposed enjoying the next day. All in all, there is no romance without finance!