The “can’t take it with you” approach to finances has been running ramped in our communities for decades now. This financial motto is possibly the most detrimental philosophy to building short term and generational wealth in the history of all history!
Ok, maybe not all history, but that financial philosophy has definitely caused a lot of people to go broke and stay broke. It’s kept us from learning smart money management skills, investing properly, and seeking out the right financial advice to conserve our wealth. In our communities there is an obvious lack of basic financial education that other wealthier communities teach their children from birth.
It’s about time we changed that. In this article I’m going to give you 4 basic financial tips to start you down the right path to break the cycle of the “can’t take it with you” approach to finances.
1. Learn to Budget
This is the fundamental foundation to achieving financial security. If you don’t know how to budget then it’s highly unlikely that you’ll be financially successful. Even the richest people in the world put themselves on a budget in order to not go broke. Learn what you can and cannot afford, discipline yourself to stay within your budget, and save money to make big purchases. You’ll also be making an effective plan for your future as opposed to just wondering blindly and hoping something sticks.
Now don’t just try any and every budgeting strategy you see on the internet. Not everything that glitters is gold, some of these plans will have you worse off than if you did nothing at all. Start to learn your spending habits and needs then decide which strategy works for you. If you continue to follow my articles then you’ll be provided with the necessary information to create the perfect budget for yourself.
2. Find A Source Of Financial Advice
Most rich people have at least one financial advisor and/or financial guru that they follow advice on how to conserve as well grow their wealth. Why don’t the rest of us have the same?
Find someone either close to you, in the public eye, or at your local financial office that you can trust advice and follow instructions to reach then exceed your goals. That person will hopefully help you set proper financial goals, create the necessary discipline needed to achieve those goals, and the self control to not blow it all once you have a nice nest egg saved up. I’m a financial planner as well, so you can also choose to follow me along with schedule a face to face appointment if you live in the Chicago, IL area.
3. Save For More Than The Short Term
You shouldn’t be just saving to buy that car, house, or vacation that you’ve been needing or wanting to make life a little more enjoyable. Your savings goals should be set for the long run and especially for emergencies. You never know what can happen in life and how much it’ll cost, so you should always have a plan to deal with the just in case situations.
It’s usually recommended that you save at least 6 months in expenses from most financial experts, that’s certainly my recommendation to my clients. Some prefer to have a year or two saved up just to feel extremely secure. You just have to find your ultimate comfort savings zone once you surpass the 6 month minimum.
Another added benefit to having a hefty savings account are the perks you receive from your bank for having a large amount of funds with them. Most of them will provide you with exclusive investment opportunities, higher interest rate, or even free passes to exclusive events.
4. Get Some Life Insurance!!
You need to ask yourself these simple questions… Do you want to be a debt to your family when you pass or a credit? Do you want your family to have a fund raiser for your funeral or be allowed to just grieve and heal?
This is by far the easiest way to pass on generational wealth. This is the simplest way to teach your children, grand children, and whole family how to built wealth for the next generation. This is also the easiest gift you can leave your family to help them get a financial boost in life.
Every single one of us should be able to afford at least a policy to cover our burial cost. What we should all be looking for is to leave as much as possible for the next generation. Life insurance is relatively easy to purchase for cheap. Most of our jobs offer company plans where you can get a sizeable policy for pennies on the dollar. Take advantage of it or go talk to an agent at either Northwestern Mutual, Mass Mutual, or New York Life. You’ll get quality insurance at a fair price with a solid company.
Moral Of The Story
Live for more than just yourself and help the next generation out. You might not be able to take it with you, but you can give the greatest gift of all. Financial security for the next generation and great financial habits for the overall family. Do like the rich do, pass the buck for the next generation to enjoy, prosper, and grow.