It is always an interesting to hear others tell me how they learned about how to manage their finances. There are many sources that combine together to make up the average person’s knowledge base for financial management.
Here are some of the sources I have observed/heard/personally experienced:
- How one’s parents managed their money – This is a VERY LARGE INFLUENCE on one’s knowledge of money management – For good or bad
- How one’s family managed their money – brothers/sisters/uncles/aunts
- How one’s friends manage their money – For good or bad
- Books – I highly recommend “Financial Peace Revisited” by Dave Ramsey, “The Wealthy Barber” by David Chilton, and “Rich Dad. Poor Dad.” and “The Cash Flow Quadrant” by Robert Kiyosaki.
- TV – This gets a little scary.
- Auto Dealers – This is more than a little scary.
- School – elementary/junior high/high school/college
- Experience – the best teacher of all!
- General observations of others
- Financial counselors
- The Bible – can it get better than this?
Regardless of where YOU get your financial knowledge, always check it against the basic equation of:
INCOME – OUTGO = EXACTLY ZERO
If it sounds too good to be true, it probably is. If it sounds like get-rich-quick, it is get-poor-quick. If it requires someone with 10 college degrees to explain it to you, then stay away from it.
- Keep it simple.
- Stay the course.
- Avoid debt.
- Think long-term.
- Maintain self-discipline and the power to say “NO!” to yourself and others.
- Wait overnight before making a large purchase.
- If you have 10 seconds to make the decision, think for the first 9 seconds.
Are you happy with where your finances are today? If you are, pour more coals to what you are doing. If you are not, go obtain some financial wisdom from trustworthy sources.