Most people think financial success and happiness are
connected, in a way they are right however happiness is not
connected to the amount of money you make. How you think
about and manage money contributes to your happiness. There
are three aspects to wealth: Managing Your Finances,
Managing Your Career and Managing Your Attitude
Managing Your Finances
1: Spend Less than You Earn and Save Money
This is the most obvious financial principal of all time;
however, it is ignored with each swipe of the credit card.
Have a budget, know where your money goes, and don't spend
money on fun things until you have paid for your
necessities. Someone once defined materialism as "Buying
Things You Don't Need, With Money You Don't Have, to
Impress People You Don't Like". Buying things never made
anyone happy, and recent research has proven beyond a doubt
that high income and net worth do not lead to
happiness.(Roszkowski, Phd, Michael J., and John Grable,
Phd, Cfp, Rfc. "How are Income and Net Worth Related to
Happiness?" The Journal of Financial Services Professionals
60.1 (2007).
Accumulate money in savings accounts, retirement plans,
investment portfolios, and your home equity. It is
important to be prepared for difficult circumstances, such
as unexpected medical expenses or a job loss. In addition,
you may want to save to help your children attend college,
for your own retirement, or to start a business.
2: Limit Borrowing
As a child in the 60's and 70's, we played Milton Bradley's
"The Game of Life". I noticed then that players who
purchased the smallest homes and who had the least amount
of debt usually won the game. The reason is simple. You are
better off earning interest than paying it. Try not to
borrow to purchase depreciating assets such as cars and
furniture. Practice patience, and learn the joy of delayed
gratification.
3: Plan
Acquire a financial plan, either using software or paying a
fee financial planner to write one for you. Having a plan
gives you the road map to help you figure out your present
location and to plan where you are going. People don't plan
to fail-they fail to plan.
4: Use Advisors
Life is complex, and the only way to sort through the
confusing maze is to utilize experts. Find and use trusted
professional advisors: legal, tax, insurance, investment,
and financial. You are the president of your personal
corporation, and your advisors are on your board of
directors.
Managing Your Career
5: Stay in School
Research proves that those with a higher education achieve
higher incomes than those who are less educated. If you are
in high school, excel and finish. Go to college, get a
bachelor's and any advanced degrees you may need for your
career. Whatever your chosen profession is, white or blue
collar, become an expert by constantly expanding your
knowledge. Every profession has classes you can take, or
books and magazines you can read. Perhaps your employer
will even pay for them. To stop learning is to stagnate.
Our society is evolving and changing faster than you can
blink an eye. You must constantly be learning to in order
to stay current, and perhaps to be on the cutting edge of
innovation. Life of continual learning is much more
interesting and fun.
Learn about financial matters. This will help you make
better decisions and identify when you are being misled.
Professional advisors are often better able to help those
clients who have taken the time to educate themselves.
6: Work Hard and Be Engaged
If your employer has hired you to do a job, you owe them
the hours for which they have hired you. Tragically,
research has concluded that most people don't spend a
majority of the 40-hour work week actually working. Don't
look for ways to get out of work, look for projects you can
take on. Create your own projects-make more work for
yourself. In your spare time, turn off your TV, expand your
knowledge, or possibly start a small business.
Too many people just move through life without caring about
the world around them. Get involved in the things you are
already a part of. You have a lot to offer.
7: Additional Sources of Income
You have heard the adage about not putting all of your eggs
into one basket. Why then do we put all of our financial
hopes into the basket of our employer? Your employer can
and will change. Even though you were the hardest worker,
with the best ideas and attitudes, you may find yourself
unexpectedly filing for unemployment benefits.
Consider having additional sources of income through a
small business out of your home. (Be wary, though, of
home-based business and real estate schemes.) Think about
the things you enjoy doing, and possibly start a small
business or get a part-time job. For example, if you love
to golf, consider caddying, or if you love to shop, think
about a part-time job at your favorite store. You may also
want to consider a second job to pay off debt.
Managing Your Attitude
8: Be Positive
Choose to see the good in everyone, everything and
yourself. You may have to look hard for it. Anyone can find
the things that disappoint and frustrate them. Choose to
like yourself, others around you, and the wonderful
blessings that fill the world. Having a positive attitude
creates a state of mind for success and overall health.
"The longer I live, the more I realize the impact of
attitude on life. Attitude, to me, is more important than
facts. It is more important than the past, than education,
than money, than circumstances, than failures, than
successes, than what other people think or say or do. It is
more important than appearance, giftedness, or skill. It
will make or break a company ... a church ... a home. The
remarkable thing is we have a choice every day regarding
the attitude we will embrace for that day. We cannot change
the inevitable. The only thing we can do is play on the one
string we have, and that is our attitude ... I am convinced
that life is 10% what happens to me, and 90% how I react to
it. And so it is with you ... we are in charge of our
Attitudes." - Charles Swindoll
9: Give it Away
The happiest wealthy people are those that give money away.
If you don't have money to give away, give away your time.
Be a friend to someone who needs you, or volunteer for your
favorite charity. There are many hurting people that don't
have the advantages you have had, and they need you. You
will discover the biblical mystery that 'it is better to
give than to receive' (Acts 20:35).
10: Focus on Family and Higher Things
Live for good purposes outside and above yourself. Reach
for the highest ideals in life. Contribute to the world
around you. Leave a positive lasting affect on the
world-this is a true legacy. Your family (spouse, children,
parents, siblings) and close friends need you, and you need
them. Make them your priority.
Summary
Being successful with the money you have is not easy or
quick and there are no short cuts. Continue to educate
yourself about financial matters and obtain a financial
plan, Implement that plan using your team of trusted
professional advisors, and monitor your plan regularly to
keep track of your progress towards achievement.
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Kent E. Irwin, ChFC, CLU, CAP, co-founder and CEO of
eFinplan.com. eFinPLAN is the first and only web-based
comprehensive consumer financial planning software designed
for people who are trying to do a lot of their own
financial planning. Find out more about how do-your-self
financial planning and how to reach your goals at: =>
http://www.efinplan.com/
