Instagram

Follow Me!

0

10 Things I Know Now and Wish I Knew When I Was Younger on Being Financially Free.

Hindsight is a wonderful thing but sometimes trying to tell your kids to do what you know works is like talking to a brick wall. Most of us simply have to go through life making our own mistakes and hopefully learning from them. In case you’re a little different I’ve written this article to let you know what I’ve learnt from 40 years of managing money. I’d love to hear more words of wisdom if you’d like to comment at the end too.

  1. Companies, businesses and some people will take as much money from you as you allow them. Insurance companies for instance will not call you to tell you that you can get a better deal with them, marketers for shops are one step ahead of the game consistently, even charities will take as much as you let them – so you have to be in control of your finances all the time, with everyone, it’s your choice.
    .
  2. Self control is something you simply cannot live prosperously without. Making excuses for failing your promises to yourself gets ‘old’ after a while. Recognise that early and become a stronger willed person. Hang on to your principals. It makes the journey so much easier. Know yourself and what you truly want and need, believe me, that’s harder than it sounds. It’s maturity and wow, if you get that early you’ll have it made!
    .
  3. Look after the things you have and buy only what you need or truly want and love the choices you make. Don’t buy something ‘just because’. Take care of your home, your furniture, car, clothes, pets, health, everything. It will save you thousands and don’t fall for the marketing that convinces you that you need to change your entire décor with the seasons/fashions. Find your style and stick to it.
    .
  4. Expensive doesn’t always mean a good product! This is especially true today with the way we are marketed to psychologically. You pick the quality you’re happy with and the price you can afford spending on a product, not justify spending, afford spending. Remember, priceless antiques are just second hand furniture to some.
    .
  5. Really, you don’t need to buy anything brand new these days. You can get anything you want without paying full price! Second hand, refurbished, discontinued and auction finds will save you a fortune. Even brand new – don’t ever pay full price! Wait for sales, make deals with sales people or look on Facebook Marketplace, eBay, Wish, AliExpress, auction sites or Gumtree for what you want FIRST.
    .
  6. Don’t rely on people doing what they say they’ll do. Harsh, I know, but dealing with people through companies etc can leave you waiting for replies and promises that will never come. Always follow up a few days later if you haven’t heard back from someone and get it sorted if you can while you have them. Emails are great because you have a written record of conversations but talking directly can get things done pronto.
    .
  7. It doesn’t make financial sense to go into debt for things that will stop you being able to buy or save for what you want in the future. For instance, you know buying a brand new car isn’t a good financial decision, it’s an emotional decision and it’s getting you into debt. Remember step 5 above? Big purchases that get you into debt for years must be made with common sense, not emotion. It’s the big purchases that are life changing financially. Sales people love emotional buyers – that’s why they’ll ‘wrap’ your new car in a bow for you! It makes you feel ‘special’. What it really does is makes them wealthier and you poorer. Think clearly before you go shopping for big ticket items and don’t get sucked into hype, know yourself and what you want. Know the financial ‘feel’ of the economy too when looking to buy property and shares. Timing is exceptionally important for investing.
    .
  8. Knowing your money situation (budgeting) is an absolute must if you want to be financially in control and financially free in the future. The earlier you “put this into practice” the better off you’ll be all your life and the easier your life will progress financially. This is an absolute truth. Look around at the people you know who are financially successful – not what they have in possessions but what they have in assets and financial security. How did they accomplish it over their lifetime?
    .
  9. Earning more money doesn’t mean you’ll be financially well off in the future. It’s what you do with it that will determine your success. From the tiniest of purchases such as the brand of toilet paper you buy to the biggest financial commitment of your first property. Respect your money and how hard it is to make and keep it. Pay yourself first (consider it a bill that has to be paid, no question) then budget on what’s left – not the other way around or you’ll find there’s nothing left over most weeks to save. Try saving 10% or 5% of earnings, if that’s too much right now then save $20 or whatever you can. It’s a habit that can change your financial life.
    .
  10. Don’t worry about what other people might think of you. Do you spend your time thinking about other people’s lives and how they should live them? People generally don’t think outside themselves most of the time. The average person filters their world through their own ego, this means that they think about most things in terms of “me” or “my”. This means that, unless who you are or what you have done directly affects another person or their life, they are unlikely to spend much time thinking about you at all.
    .
    And there you have it, 10 things I wish I knew when I was younger for financial freedom. Oh and I wish I’d bought a Falcon GTHO phase III in the early 1970’s and kept it! Haha! (They cost @$5000 and are now worth well over $500,000 if in good condition)