When It Comes To Finances, How Much Do You Know?
If you're like most people, you probably know little about how money works and how that lack of knowledge affects your wallet. Perhaps you think that achieving long-term financial security is impossible on your income.
The most important thing that can help you solve your financial challenges is to have a belief that it is possible. Many people don't make an effort to learn how to manage their money. There are many common reasons why this is so but the 5 most common mistakes people make are:
- Lack of understanding about how money works
- Not paying yourself first
- Being a 'Loaner" and not an "Owner" of your own money
- Not having financial goals
You'll Earn A Fortune In Your Lifetime
The truth is that over our working lifetime we will earn an absolute fortune! Most people work from about the age 25 through to 65 or about 40 years.
$50,000 x 40 years = $2 million
So you see, it's not that you aren't capable of becoming wealthy. The raw resources - are there.
Then why do so many Australians retire relying on the old age pension? Because they are still working for their money. They haven't learned the simple secrets of making their money work for them.
It's Not What You Earn, It's What You Keep
Your income is your most important asset, but it's not what you earn that counts, it's what you keep for yourself. Think about your own life. How long have you been working? How much have you earned? Now ask yourself - how much do I have in savings?
If you're like most people, you'll be shocked at how much money has come your way, and how little you've saved.