It Takes Time

A word of warning: getting your financial house in order takes far more time than you expect. 

That doesn’t mean you should avoid it.

While everyone wants to put a dollar value on their time, the benefits of understanding these numbers will outweigh any dollar value you might lose by accurately understanding your true worth.

Moving your investments around so they’re in the right vehicles, invested in the right funds with low fees will provide you comfort knowing you secured future income.

If you’re not trying to beat the market, then all of this can be done…

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Assets vs. Liabilities

Do you know the difference between assets and liabilities? Or, to rephrase, do you know the difference in how you should view them while building wealth?

For most people, assets are those THINGS that could become money one day. This can include items like your house, your car, or jewelry.

For most people, liabilities are those THINGS that you’re still paying for. This can include things like credit card debt and student loans.

But when accumulating wealth – and really you can view these terms in this way for most of your life – assets bring in money.

Liabilities take away money.

How does that change your financial outlook?

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The Power of 1

Think small changes can’t make a difference in your finances? Then think about the power that the lowly number 1 has in building your wealth.

By upping your savings rate by just 1% a year, you can increase it from 10% to 20% in ten years, vastly improving the probability you can safely retire one day.

Saving $1 more per day can save you $30 more a month, and $365 more a year.

Having one car versus two can save you over $800 a month, on average, or nearly $10,000 a year.

A difference of 1% in investment fees can result in a difference of hundreds of thousands of dollars by the time you retire.

Imagine…

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Meddling With Your Finances

We’re natural meddlers. We want to tinker. We see something that doesn’t quite work right, and we want to find a way to do it better.

It’s what created self-help. We see people tired of their jobs, sick of low pay, need new outlets for creativity and an entire industry has grown from advice.

It’s inherent in being human, engrained from childhood. If something doesn’t work this immediate moment, how can you do it better? It’s a natural impulse.

This tinkering has led to technological innovation, allowed us to reach the moon, and cure cancers. It’s a human marvel!

Except when it comes to finances

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Get Rid of the Want

Searching for the secret to financial success or even financial freedom?

Ignore the want.

It’s what forces you to overspend. It’s what keeps you from saving. It’s what prevents you from investing. It’s what creates debt.

Want proof?

Stories abound about people making less than $50,000 a year repaying…

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Sharing With Your Significant Other

If you can’t discuss your financials with your significant other (SO), ask yourself why.

Does it have to do with how your parents viewed money, never discussing it? That’s a shame; don’t be like them. Break the cycle and discuss it with your SO.

Does it have to do with fear you will disappoint her? If she really loves you, then there’s no reason you can’t share your financial truth. Break the cycle and discuss it with your SO.

Are you afraid of what he might think…

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The Latte

Cutting out the latte has become a budgeting flashpoint.

Some claim you must “CUT” the expense out of your budget. Think how much the $4 could climb when invested over thirty years, they cry.

Others say, “KEEP” your latte. It’s not a large enough expenditure to make a significant difference to your savings rate, they soothe.

Neither side is correct. Neither side is wrong.

It’s up to you…

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