You are not born with the necessary knowledge to achieve what you could class as personal financial fitness throughout the various key stages of your adult life, which is why it often pays to listen to some words of wisdom from some financial experts.
There are so many different tips and insights to consider that could all make a real difference to your finances both now and in the long term, such as making use of the points available from a Chase Freedom unlimited card, so here are some pointers to consider.
Greed and fear
When it comes to stock market investing and other forms of financial speculation, Warren Buffett is credited with saying be fearful when others are greedy, and greedy when others are fearful.
This is a basic piece of advice that can make a fair difference to your success in buying and selling stocks to increase your personal wealth.
The principle of this pearl of wisdom from the Sage of Omaha and one that is followed by a number of financial experts in their field, and put in basic terms, it means it is best to buy low and sell high.
If you are someone who likes to handle their own stock market investments, following this simple but effective strategy, can potentially make a substantial difference to your returns over a period of time.
Always look after number one
The author of Your Erroneous Zones and It’s Not What You’ve Got: Lessons for Kids on Money and Abundance, has some simple financial advice that he says is one of the key routes to achieving true financial independence.
Wayne W. Dyer Ph.D., advocates the philosophy of paying yourself first and basically looking after number one, so that you create a greater amount of personal wealth and financial independence.
What this means in practice, is to slice off a percentage of every paycheck, somewhere between ten and thirty percent each time you get paid and put it away. Getting into that discipline should see you accumulate a level of personal wealth and independence in a fairly painless but ultimately effective way.
Understanding good and bad debt
One of the co-authors of Rich Dad, Poor Dad: What the Rich Teach their Kids About Money – That the Poor and the Middle Class Do Not!, is keen to impart an understanding of the fundamental differences between the two.
Robert Kiyosaki, passes on what he learnt from his Dad on this topic. Put simply, if you use your credit card to buy a regular item like a new pair of shoes or some clothes, that is an example of bad debt, as you are borrowing money to finance a purchase that is not going to earn you anything.
Building a property portfolio using finance is an example of what he calls good debt. Taking out a loan to finance a property that is going to generate an income that exceeds your loan payments and promises capital growth, is an example of could be classed as good debt.
Take your time
If you stop to think about it, you will have taken time to mature as a person and you will have made some mistakes along the way.
Taking the slow and steady approach to building your wealth and developing a financial personality is a philosophy that often rewards patient investors. This Is the approach and advice that experts like Dave Ramsey, the author of The Total Money Makeover: A Proven Plan for Financial Fitness, advocates.
He refers to a story that a billionaire told him about reading The Tortoise and the Hare to his children, which ends with the tortoise beating the hare, despite being obviously slower than him.
The lesson to take into your personal financial planning is that trying to get-rich-quick rarely pays off. It is far better to be consistent and steady in your approach, so don’t attempt to take too many risks in order to build your wealth quickly, as it is seems it is often far better to be the tortoise rather than the hare.
You really don’t have to be a qualified financial adviser or an accountant to be a bit savvier with your finances, and having a greater level of control will soon bring you a greater level of confidence and financial independence.
Keep a watchful eye on everything you spend, get into the habit of running a monthly budget and seeing exactly where your money is being spent, and don’t waste money if you can help it.
Take on board some of these words of wisdom from financial experts and you will soon feel like you are more in control.
Lucy Arnold works as an accountant. She enjoys offering up some helpful advice in regards to finances to her clients and is now taking that 1 step further by writing for an online audience.