Life Lesson #29: Learn about personal and family finances.
One of the biggest challenges that every one of us will be faced with over our lifetime is in the realm of finances. We all need resources in order to provide the type of life we desire for our families.
Unfortunately our society doesn’t do a great job with providing much in the area of education when it comes to creating a life of financial management. We may know some of the basics, but once you reach adulthood – there are so many choices and challenges that come up – retirement, insurances, lawyers, taxes, wills, investments, purchases, savings, etc. – that if you don’t learn about them, you may make some financial decisions that will impact you for the rest of your life.
One of the best decisions my wife and I made was to learn about personal and family finances – via experience, research, mentors, experts, reading, seminars/trainings, and programs. Because of our focus and application of the various lessons, we find ourselves in a much better financial condition than we would have been if we didn’t invest the time, energy, and resources to learn them. It’s one of the greatest investments you’ll ever make my friends.
Here are the 5 elements of what I call the “Wealth Wheel” to help you get to where you desire to be financially:
1. Psychology of Wealth (you must believe you can be wealthy and that you have the psychology to face the various challenges with an open mind/heart in order to continue to move forward)
2. Financial Plan (you must know where you are, what your goals/dreams are, and how you are going to get there via budget/plan/etc.)
3. Financial Team (there are many other people along the way that can assist – just be sure they are experts and people of integrity – my top 4 you must have are a financial planner, tax advisor/CPA, insurance agent/advisor, and a lawyer)
4. Financial Tools & Resources (Books, seminars, online tools, spreadsheets, etc. – anything and everything that you can obtain to grow, learn, and expand your knowledge is critical – you must be able to work well with your Financial Team in creating the financial plan you desire)
5. Consistent Action (you must follow your plan – adjust it as needed – yet you must consistently follow the plan. Without consistency you will more than likely never meet your goals/dreams)
Here are the 7 books that had an impact on our journey and that I highly recommend:
1. Think and grow rich by Napoleon Hill
2. Secrets of the Millionaire Mind by T. Harv Eker
3. Rich Dad/Poor Dad by Robert Kiyosaki
4. Total Money Makeover by Dave Ramsey
5. The One Minute Millionaire by Allen and Hansen
6. The Millionaire Next Door by Stanley and Dako
7. Smart Couples Finish Rich by David Bach