6 Things You Don't Know About Your Financial Self


Ready to Conquer the World?



So you’ve recently graduated college and you’re ready to conquer the world. But, you realize that in order to conquer the world, you have to be financially responsible.  You now need to deal with this thing called money management. You know it, I know it. There is no avoiding this one.


Get to Know Your Financial Self



Get Ready to Conquer Your FinancesWhat you probably don’t realize is that at the start of this new relationship with managing money, you have a clean slate. You can decide which type of financial journey you will go on. How cool is that? So why not start out with an amazing financial mindset – one which could bring you financial freedom and independence?

Here are few things I want you to know, think about, and ask yourself as you build your financial life:

1.)  If you had all of the money in the world, what would you do?

How would you spend your money?  Would you buy experiences or things? At the end of your life, you’ll realize that you can’t take with you all of the things you bought over time. By contrast, all the experiences you buy will stay with you forever. The trips to Europe with your friends, the vacations with your family, and the walks on the beach with your significant other – you’ll come to understand that using money to buy experiences may just be what you really value money for. At the end of the day, it is much easier to make decisions about money when the choices you make are aligned with your values.

2.)  You know that you will have to create some type of budget

I can’t stand that word!  “Budget” means you have to cut back and can’t really spend money on things that make you happy.

Are you OK with making more money?But wait.  How’s this for a novel idea? What if you just made more money? How did you feel when you read that? Are you ok with making more money? Some people have a hard time being ok with making a lot of money. They think they are taking advantage of people and that they are not worth what they charge. Take it from me. I thought that way for about 15 years. I have finally come to the realization that you can make money, real money, by being authentic, offering real value, and by being relevant.

3.)  Are you a natural entrepreneur, or do you like the stability of working for someone else?

If you are an employee, you will have more job security and a steady paycheck. Your earnings might be capped in most cases, which means you might not have as much control over how much money you earn. As an entrepreneur, you will eat what you kill. Your upside in making money is virtually unlimited. You are the key decision maker, but you have way more responsibility.  How does that feel to you?  It’s ok to be either an employee or an entrepreneur.  Make a conscious choice and do what feels right.

4.)  What is it that you really like to do?

If you have no idea which direction to take your career in, than its time to start thinking about it! So many people just take a job, settle and look back 10 years later and say, oh geez – what have I been doing for the last 10 years? Did I learn anything? Did I fully live? Did I make a difference in what I was doing? Try to find a job or start a business that you are passionate about and that enables you to use skills that make you happy. 

5.)  What have you learned from your parents about managing your money?  What have your parents taught you about managing your money?

What did they teach you and why? Did they even talk to you about money? Or was it a taboo subject? Are you now faced with the fact that you have to get some financial education on your own? How are you going to do it? Krane Financial Solutions puts out a weekly newsletter on personal finance topics that will help you get your feet off the ground. Also, check out other sites geared to your personal financial journey, like iGrad.com, Mint.com, MotleyFool.com, and SmartyPig.com. 

6.)  Are you interested in becoming a more educated investor?

Here are two simple strategies for you to learn about investing. 

  • Dollar Cost Averaging

Do you ever feel like you have the worst timing and in the world? You choose the wrong line at the grocery store. You always get parking tickets. You buy a pair of pants and then they go on sale two weeks later. If you don’t trust your timing, try dollar cost averaging when you invest. 

Dollar cost averaging means you invest a set amount of money every month, you buy fewer shares at higher prices and more shares at lower prices. That way, you will get an average price and you won’t  feel like you have to time the market. 

  • Rebalancing

Rebalancing is the process of buying and selling things (asset classes) in your portfolio in order to set the weight of each asset class back to its original state. You are trimming (selling some) positions that have increased in value and buying some positions that have decreased in value.


Get Conscious



Here’s the bottom line. Start being conscious of how you think about money and make the decision to control your financial life. You’ll be way ahead of the average Joe and on your way to a financially healthy life.

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About the Author: Justin Krane

Justin Krane, CFP, CIMA is the founder and president of Krane Financial Solutions located in Southern California. His firm focuses on Financial Life Planning - providing a unique platform and perspective that enables his clients to become empowered and take control of their financial lives.

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