Top 5 Things you need to Know about Money
-
Money isn't Evil!
Having too much money is not a bad thing, nor is having too little money. What you do with your money is what is important!
Financial freedom can be achieved by people on modest salaries as easily as people on salaries over $100k! Your financial goal should be to decide what you want to spend your money on and then make sure you stick to that plan. As long as you spend less than you earn, financial freedom can be yours!
-
You make your own Money.
Whether you are an employee, a business-person or an investor, you make your own money. The only difference is how you make your money.
An employee sells their skills and knowledge and a business-person sells a product or service. The amount of money you make depends on you. You can educate yourself to increase your skills and knowledge and therefore increase your income. Or you can expand and build your business to increase your sales and improve your profit.
-
Choose how to spend your Money.
The most important thing about money is to choose how you spend your money. You should always know what you want to spend your money on and what you need to spend your money on. If things get tough it is the wants that have to go!
-
Make your Money work for you.
If you are being good and spending less than you earn, there should be some money left-over. Make sure that this money is working for you. Whether that is investing in a term deposit, the share market, property or other investment - your money should be working as hard as you do!
-
Focus on your Goals.
Like all things in life, if you don't know where you are going, you won't know when you get there!
Make time to sit and write down your financial goals. These could be to have $2,000 in savings, to pay off the credit card, to buy a car or save for a house. Everyone's goals are different so focus only on your own.
Make sure that your list of goals includes what you want this time next year, through to what age you want to retire. By knowing what age you want to retire, you have a better chance of achieving it!