Knowledge and experience do not happen overnight. Not even the habit of saving and investing is consolidated immediately. They need and must be experienced, lived on a daily basis, in moments of crisis or not, until they are polished and incorporated.
“One of the things that separates us from other living beings and makes us human is the ability to be conscious and, through this consciousness, modify our reality” . (Deborah L. Prince, Money Therapy)
There is no single method to manage your quality of life, but through financial education, you will build your best path to prosperity. And on this walk you will see the importance of persistence and determination at different times.
See 10 financial education tips
1. Work, save and invest
The activity you carry out as your main source of income must be the central provider of resources. This way you will support the day-to-day consumption, including all the expenses foreseen monthly.
To impose the habit of saving monthly, create the discipline of first earning and then spending. Always spend less than you earn. And, due to its planning, the surplus must be more than 10%, which must be invested in a disciplined way.
The objective is to generate additional income or mainly to make the money work for you, over the years. Be persistent at work!
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2. Start with 1 Real, but think about the first million
As nothing starts at the end, your million starts to be a reality with every real invested in a regular and constant way! Remember, from grain to grain the chicken fills the crop. Be determined in investing!
3. Spend less than you earn
First of all, don’t consider your gross earnings as your real earnings. Your monthly earnings is your net salary (gross, less taxes and other fees).
In the sequence you must invest 10 to 30% of your net and live. Try to balance yourself with the rest, not for a month, but for decades, until your retirement . Be conscious of your spending!
4. Spend maximum on the speed of simple interest and invest with an eye on the benefit of compound interest
Your consumption moment must be very rational so that you don’t create unnecessary commitments, out of real need.
On the other hand, be a persistent investor, month after month, year after year, and you will find that over time, the nominal amount you invested is less than the compound interest generated by your investment!
Give the opportunity to enjoy compound interest working for you!
5. Don’t waste too much time on the past
Your future is the size of the impact of the actions you take today. Plant today, water regularly and harvest tomorrow. “The future is not abstraction, the future is a result” .
What you are doing today with your finances is a very realistic indicator of what your future could be. This impacts on your quality of life, considering that you can have extended longevity. Build and enjoy every phase of your life!
6. To die healthy, you need to cultivate a quality life
Up ahead, in order to die healthy, it is necessary, from now on, to live with quality of life. Financial education is a “middle activity” that will contribute to a better quality of life. However, parallel to financial education, you should:
- Keep in shape . Exercise, get your body moving daily. Physical exercise animates your mind, your soul, your thoughts and actions. By exercising you will think better.
- Keep your brain smart . One tip is to read. Read everything, books, magazines, newspapers, posts, cartoons, the clouds, etc. This is how you learn to read the world, read life, read you!
- Connect to your hobby, friends, family, your group, team, your community, in short, what you defend most . By connecting with the world you connect better with yourself, because you are a big little world.
- Expand your horizons . Be curious, a lifelong learner. Understand that our world is not measured by the distance that goes from one horizon to another, but by the extent of our understanding.
7. Longevity with quality of life
So, money and financial education will be “middle activities” that will contribute to this improvement in longevity with quality of life , which is the main end activity.
Financial education and money should not be the center of your world, but they should always be part of your best life, your stability.
Have no doubt, your financial balance will give you more peace of mind for you to live more fully, appreciating what is most important to you. Pilot your money!
8. Persistence is key in financial education
A lot of persistence is demanded not to deviate from the route of consumerism! Consuming is not a sin. Consuming wrong might be worse than that.
However, consciously consuming is the way to give sustainability to you and the world around you. Consume in moderation!
9. Patience is another good tool
A week, a month or a year does not define your persistence, but what you persevere for decades does! Life no longer has only 2 times like a football game.
Today our life has 4 periods of 25 years each. How to play the game of life after 50 and after 75? The big challenge: how to have quality of life between 50 and 100?
Answer: having financial education and having enough reserve in the first 2 times, so that from then on, compound interest is working at full steam for you! Pilot your future!
10. Define the biggest goal of your life on this earth
In order not to run away from your goals, in this case, financial, have a greater reason why you will be determined to follow your intentions. For example, have your own longevity with quality of life as the great objective that I mentioned.
So exercise daily. Read a lot. The sum of exercise, reading and financial balance will give you a fuller quality of life! fun! Be curious!
Conclusion: financial education is your habits
Being determined and persistent with your goals in the conduct of your financial life takes work and time, but it’s worth it. Just like taking care of your health, looking after your finances is timeless, and demands continuous attention.