It’s unfortunate that personal finance is not a required subject in high school or college. This lack of basic financial knowledge leaves many young adults clueless about how to correctly handle their money and stay out of debt. Here are some words of wisdom from people you might know to help you embark on your financial journey.
Let’s start with some words from Mark Cuban, most notably known as the owner of the NBA’s Dallas Mavericks and one of the main ‘sharks’ on the hit reality TV show, Shark Tank. Cuban once said that “being a smart shopper is the first step to getting rich.” This has been stated by almost everyone countless times but it bears the most weight, senselessly spending money on things not needed is a terrible way to prioritize your finances. There’s no harm in rewarding one’s self from time to time but to justify any purchases beyond the essentials is just plain wrong.
Cuban’s advice goes hand in hand with what famous actor Will Smith stated, “too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” This is especially relevant today with the younger generation and the prevalence of social media, don’t get caught in the delusion that what you see online is what you get, no one has to prove anything to anyone but themselves, so let those people look rich while you become rich.
We now go on to saving, truthfully, easier said than done but when done correctly, it’s a set-up to a better and more comfortable standard of living. Shaquille O’Neal, a 4-time NBA Champion, shared his experience about this related to how he spent 1-Million Dollars in less than an hour as a rookie. O’Neal said on a segment of Halftime Report and as he demonstrates with a piece of paper, that seventy-five percent (75%) of earnings should be saved while the remaining twenty-five percent (25%) is disposable and can be spent on leisurely items such as cars, houses and travel.
The examples above have come from elsewhere, but we don’t have to look far for them, take Kris Aquino, known for her work in Filipino television and movies, but also as the daughter and sister of two former Presidents, Corazon Aquino and Benigno ‘Noynoy’ Aquino III. She could have easily become a full-time celebrity but chose not to be, she was interested in generating multiple streams of income as a single mother in order to secure the future of her two sons. The same thing can be done on a lower level, saving is crucial in reaching a point of financial freedom, however, you can’t save what you don’t earn. Therefore, having different avenues of earning money is an excellent way to get there.
It’s important to remember that no one needs a fancy degree or a special background to become an expert at managing their finances, with a little self-awareness and discipline, this feat can be achieved by just about anyone. The messages above can be used as inspiration in order to take those next steps in becoming secured financially.