Improve Your Financial Knowledge

financial control

When it comes to your financial knowledge, stop pretending that you don’t know what you’re doing.  There are more resources than ever.  If you’re a book lover, read a few on personal finance.  If you’re a net surfer, start Googling up on financial terms.

 

Answer the following questions and take a few minutes to research anything that you don’t know.  Don’t be afraid, we all have an area that we need to focus on.  These items are off the beaten path, and from what I’ve seen, points that cause confusion.  Some are Yes/No or True/False, while others are thought questions.

 

I’m all about sharing knowledge.  I learn something new every day and never stop reading.

 

Earning

True or False:  I have a progressive career plan that will increase my earnings within the next five years.

 

The last time I improved my work skills was ______________.

 

Related Post: Money Learning Checklist 1         Earning/Saving

Continue reading “Improve Your Financial Knowledge”

2018: What To Start Doing And What To Stop Doing

2018 leap

I’m revved up for the new year.  I like to think about the books I’ll read, the new projects I’ll work on, and my new financial goals.

THIS POST MAY CONTAIN AFFILIATE LINKS.  SEE MY FULL DISCLOSURE FOR DETAILS.

What I’ve accomplished during 2017 inspires me to keep it rolling.  I pulled off some difficult projects at work and earned a top evaluation rating and raise.  I finished an 18-credit certificate in Web Programming. I started this blog.  Learning WordPress on my own and customizing the blog page was a challenge, but the struggle stretched my skillset.  Blogging isn’t just about writing. It’s learning about social media, like Facebook, Pinterest, affiliate marketing, guest posting, and commenting on other blogs.  My professional development wasn’t ignored.  I conducted two financial planning workshops and presented at the IRS Practice and Procedures conference with the New York State Society of CPAs.

Continue reading “2018: What To Start Doing And What To Stop Doing”

Financial Independence Hokey-Pokey

 

financial freedomI didn’t focus on being financially independent until about three years ago.  I had an idea what my net worth was, but wasn’t fully clear on the exact number.   The lack of a plan made it a nebulous target.

THIS POST MAY CONTAIN AFFILIATE LINKS.  SEE MY FULL DISCLOSURE FOR DETAILS.

In my 20s at the start of my career, retirement seemed so far away.  I relied heavily on my accounting career to give me financial security.  After all, I chose the career knowing that I’d always have a job.  Consequently, every ounce of my energy went into working.  There were summers that I never saw the light of day. I never knew when I was getting home and I made many sacrifices.  Believe it or not, it was exciting and I enjoyed it.  I latched onto an upward trajectory of promotions and raises.  When I had full autonomy over my position, I liked being relied upon and the responsibilities that went with it.

Continue reading “Financial Independence Hokey-Pokey”

5 Ways Your Life Is Impacted By An Interest Rate Increase

 interest rate

Interest rates do not make for the most exciting chat topic. You won’t find it in the conversation starter game that you unwrapped for Christmas.  It’s probably easier to clear a room by yelling ‘Interest Rates!’ than FIRE!  Watch your friends and family run from you as you broach the topic of how the Federal Open Market Committee voted to keep the Federal Funds Target Rate at 1.00% – 1.25%.  Fed Prime Rate Info

Still reading? Good.  Because interest rates impact your life. Continue reading “5 Ways Your Life Is Impacted By An Interest Rate Increase”

How Money Plays a Role in Our Lives

financial control

I see everything through a money lens.  I realize most people don’t.  The notion of excluding money from everyday thinking is unrealistic to me.  Unless we live off the grid and grow our own food, then money may be considered trivial.  In the real world, money is the medium through which we manage our standard of living.  Ignoring the role it plays in life is downright naïve.  We exchange money for everything: food, shelter, clothing, electricity, heat, transportation.  Most people shun money topics, or think it’s too boring to talk about.   Reality is, money is the undercurrent of life.  People say they don’t care about money.  They say they want to ski all day or go fishing but they still have to buy the skiing gear and fishing rods.

This post is about how money is intimately interlaced into every area of life and why it’s critical to pay attention to monetary affairs.

money management Continue reading “How Money Plays a Role in Our Lives”

Acknowledge Your Money Behavior

financial management

I’m trying to get to the root of money behaviors. This topic is becoming an annoying bug buzzing around the inside of my head.  Because I spend so much time reading and researching money issues, it’s outside of my faculties to conceive that others don’t make responsible money decisions.  I am constantly reading that more than 50% of pre-retirement workers have little or nothing saved for retirement, and I can’t wrap my mind around it.

Money scripts, just like any other psychological scripts, are clearly the driver, but it’s also about education, or the willingness to learn.  Most adults are struggling to manage their finances, and many concede that they don’t know the basics.  For young adults, there’s no formal education for personal finance, and high school graduates have no idea what to do regarding self-support.  College graduates are burdened with student loans without any idea how they’re going to manage the payments.  Many don’t know how to anticipate real-life expenses and get quickly overwhelmed.  They get blindsided by the multitude of costs, using credit cards to pay for necessities, and enter the danger zone of perpetual debt.

By not knowing the first step, or knowing how to manage all the pieces that make up a comprehensive, effective financial playbook, individuals retreat into ignorance.  That’s never good.  Those that choose not to address their financial issues too often find that eventually their money issues are running them, not the other way around.  Credit that’s not managed properly, spending money that one does not have, letting emotions control money decisions.  These are just a few.  Some money issues are so extreme that they upend a person’s life, leaving the individual with lifelong debt or substantial losses of savings.

Money Scripts

In conjunction with education, the money script of the individual deserves acknowledgement.  If you’ve read any of my previous material, I’m a huge fan of Dr. Brad Klontz, the psychologist responsible for coining the phrase.  All the education in the world will get thrown to the wind if the person possesses a destructive money script.  The money script will collide with the education, and will win in the end.  That’s because the money script is generated from subconscious beliefs.  The person may not even realize they’re displaying certain behaviors.  The human brain works that way, it’s part of survival.  We learn things that work for us and there’s always a payoff for doing what we do.

I intend to be a teacher of the elements that result in a sound financial setting.  Once the elements are part of everyday awareness, it becomes easier to process the combination working together.  Starting out may not be easy, but a strong goal with small rewards along the way will result in an increase in quality of life and overall contentment.  By chipping away at understanding one aspect at a time, it all comes together.  The sum is truly greater than the parts and financial harmony can materialize.

Continue reading “Acknowledge Your Money Behavior”

Financial Planning Workshop Is A Success

financial planning

I’m conducting a personal financial planning workshop at a local bookstore.  In three sessions, I plan to provide an overview of the following aspects of financial planning: saving, spending, investing, retirement, and insurance.

The first session, this past Thursday, was a success.  A small group showed up representing all age groups.  I started with my usual introduction, explaining how each person’s mentality towards money drives their money habits.  With the following visual, I outlined the topics that, when combined, result in balanced financial management.

financial planning

Continue reading “Financial Planning Workshop Is A Success”

Money Learning Checklist 5 – Retirement Planning

money management

 

THIS POST MAY CONTAIN AFFILIATE LINKS.  SEE MY FULL DISCLOSURE FOR DETAILS.

Planning For Retirement

“I have to work after I die to pay for the funeral.”  I overheard this comment from someone that looked like time was not on his side.

What’s happening?  How are people stretched so thin that they feel they can’t even afford to die? I know, salary growth issues are depressing and wealth inequality is making headlines on an almost daily basis, however, we still live in a country where jobs and opportunities are alive and well.

For the people living paycheck to paycheck, there’s a need to closely examine why that is.  If incoming money doesn’t cover all living expenses, it’s time to make a change.  That means moving where income meets or exceeds the cost of living or an increase in income sources is needed.   Translation: better job skills in the form of education or training.

Continue reading “Money Learning Checklist 5 – Retirement Planning”