Secrets to Success with Financial Education – Part 1
For most people financial success means having the freedom to live their own lifestyle and spending more time with their family and friends. Not in 10 years or 5 years time, but now.
The hardest part in that equation is achieving financial success. If you like the idea of someone else taking responsibility for your financial success then go and see a financial adviser although it's unlikely they will provide you with the same definition of financial success that you had in mind.
The resources available to most financial advisers are limited to traditional investments and we all know what happened to those over the last couple of years.
If you're looking for the financial success that's outside a financial adviser's vocabulary then you need to take responsibility of your own financial education.
So what are the secrets to success with financial education?
To answer that let's first look at the components of traditional financial education.
The 3 basic components are short term, medium term and long term financial education and knowing what you should be doing in each of those time frames to achieve your financial success.
Short term financial education will traditionally include looking at your income and expenses, perhaps preparing a budget, tax planning to minimise any taxes you pay, and protecting your assets, family and yourself through appropriate insurance.
Medium term financial education is going to focus on things like planning for your children's education, next car and perhaps even your next overseas holiday.
Long term financial education is going to focus on your retirement. When and how you are going to get there and what resources or investments you are going to use to get there.
That's the traditional financial education path your financial adviser will take you down and that's fine if your definition of financial success is the same as his.
But, if you want the kind of financial success that provides the lifestyle and freedom you seek then clearly you need to change something. You need to take control and responsibility for your own financial decisions and success through financial education. Your financial education therefore needs to focus on your short term picture and this is in 2 parts.
For a start you need to become self employed, so that's where the first part of your education begins. Have you ever seen an employed person living the lifestyle they want? Taking whatever time they want to spend with the kids or travel on holidays? It doesn't happen. If you're already self employed and not achieving your goals then possibly you are in the wrong business and need to change.
Your aim or task is to educate yourself through research on finding a business where you are self employed and a business with the potential to generate an income that will provide the lifestyle and freedom you seek. This article is not the place to tell you what that business should be as everyone has different backgrounds, skills and resources but there are countless opportunities out there and it's up to you to find the right one. I wouldn't ask your financial adviser either, he'll be more focused on your long term picture.
The second part of the Secrets to Success through Financial Education will look at the education you need to make the right investment decisions to change your lifestyle now.