On my commutes to and from work, I’ve been intently listening to Robert Kiyosaki’s audiobook ‘Rich Dad, Poor Dad’- and I cannot highly recommend enough that you check this out asap! Now, some of you might think, pfft this is just another silly self-help book. Well, it’s not. It’ll open your eyes and inspire you to start thinking outside the box with your finances. Does this scare you? It shouldn’t if you can start developing your financial intelligence now!
To some, financial intelligence may mean different things to different people. Essentially, it is the understanding of the foundations of finance, the science behind it, and the ability to be confident in making your own financial decisions. The key to all of this? Simply start. So, allow me to help you to get started:
- Write down your goals – create your goal space!
What are your financial goals? Here are a few things to think about:
– Financial Freedom (do you really want that desk job for the rest of your life?)
– Create passive income – this means you don’t have to do a darn thing to bring in the mula.
– Pay off your debt – or your family’s debt (there’s no need to have this hang over your head your entire life)
– Be able to work from wherever you want (getting a tan while working? That’s all kind of productive right there!)
To get your head in the right space and scatter-free (believe me, it’ll be like maze in there), get your workspace organized. Create a vision board to keep your goals visual and track your progress using spreadsheets (prepare for Excel to become your best friend…sorry, not sorry).
- What financial channel will you choose?
There are two things you can do to reach your financial goals – either save as much as you can from your current paycheck and wait for those promotions to eventually come; or you can choose to increase your wealth. I’m guessing you’ve chosen the latter, otherwise you wouldn’t be reading this. So, now that I still have your attention, you will need to choose how you plan to go about this. A few options include:
– Educate yourself on the sharemarket: people are frightened of this because they are afraid to lose. Truth is, all successful people have lost – so yes, be prepared to lose (that also applies to other parts of life too but I’m not here to be your therapist). However, WE are here for YOU regarding all things finance, so stick with us. But, with great loss, comes great gains, so you also better be prepared to win. Read everything you can, watch videos (youtube is your bestfriend). Think about whether you want to be a value investor, chasing that dividend yield (yield = return), or want to invest in small cap stocks – there’s a whole wide world to explore! Don’t worry though, we’ll be touching on investments in the near future and will be releasing a jargon filled financial glossary to help you get your head around these terms. Not sure what type of investor you may be? We got your back. Keep your eyes peeled though in the next week as we release a simple questionnaire you can do to measure your risk profile.
– Real-estate: again, knowledge is power, and the power to spot a good
investment property is priceless. There are courses you can take on this, seminars you can attend, or find a professional you trust and talk over your goals with them.
– Start your own business: this really is one of the best ways to become financially free. For some, the life of an entrepreneur is just not going to be a thing, but if you’ve even had one thought of owning your own business, you keep that thought pinned up in your brain because one day, you’ll have that lightbulb moment…and you better be ready.
Ok, let’s come back to our original question now – why should you care about finance? People who knew me before my Finance degree would think I would be the very last person to be interested in the field…and to be honest I did too. But here I am 2 years later and I can’t believe what kind of world i’ve been missing out on my entire life – too corny? Don’t care – it’s the truth.
Learning about finance will inspire you. It will push you to chase whatever vision you have for yourself in the future, because being financially intelligent is going to help you get there. And here at AJ, WE’RE going to help YOU get there. We’ll cover topics you may not even knew existed. Concepts that will excite and open your eyes to new possibilities and opportunities. If you want to know more about a certain topic or want us to cover something you don’t have the time to research yourself, drop us a line via email and we’ll do the work for you (but no we are not going to tell you which shares you should invest in, but we can educate you on how to go about choosing the best portfolio to match your needs.