Money Tips Daily - Financial Education is Your Key Wealth and Success in Life

Welcome to Money Tips Daily this is Money Kelly bringing you money tips to help you save and make more money!

Financial education is one of the main keys to managing and building your wealth. Financial ignorance will be extremely costly throughout your life, especially when you put everything into the hands of advisers and accountants.

In my forthcoming book, Yes, Money Can Buy You Happiness, I include section on the “Stars Who Lost It All”. One of the main reasons most of these celebrities went from extreme wealth to bankruptcy in a few years is a lack of financial education. They thought everything was being “handled” and didn’t have the common sense or knowledge to check what their advisers were doing with their money.

Unfortunately, they don’t teach you this stuff in school, right?

One way of gaining the knowledge that most advisers have and keep to themselves is to take a financial adviser course.

Take a basic course in becoming a financial adviser, which can be done as a home study course and are widely available in countries where there are financial regulators or just Google it. The CII (Chartered Insurance Institute) have been training financial advisers for decades. They offer courses in financial planning from Award and Certificate level right up to Advance Diplomas.

Early in my career, I spent many years as a financial adviser in the bank and running my own business. The knowledge I gained from the courses which I took, and exams I passed, to become a financial advisor had been invaluable to me throughout my life, long after I left the industry.

The courses taught me about taxation, pensions, trusts and wills, mortgages, insurance, saving and investing. More importantly it taught me about borrowing money and using the infinite benefits of leveraging 'other people's money'.  

In short, the knowledge gained through financial services courses have literally been worth many millions to me over the years. It helped me in my business and I would never have got into property investing without my financial adviser training.

I'm not saying you should become a financial advisor, just take the courses so you can educate yourself towards their level. As Tony Robbins says in his book, Money, if you lack financial education how can you know what questions to ask your adviser?

How can you know what type of adviser you are dealing with and whether or not they are right for you?

One of the biggest financial decisions you’ll make in your life is buying a house or obtaining a mortgage. In my experience, the vast majority of home buyers have little or no knowledge about the mortgage product they are taking on, a loan which will cost hundreds of thousands of pounds over the term! Listen to my earlier podcast on mortgages and finding a better deal.

Pensions is another area where there is much confusion, which is why so few people save into pension schemes to fund their retirement. Millions of people are facing a bleak retirement or being unable to stop working.

Taking a financial adviser or financial planning course could literally save and make a fortune.

Check out my podcast episode "Financial Education is the Key to Wealth" on Anchor! https://anchor.fm/charles-kelly/episodes/Financial-Education-is-the-Key-to-Wealth-e1417l

Check out my podcast episode "Money Tip Review you Mortgage" on Anchor! https://anchor.fm/charles-kelly/episodes/Money-Tip-Review-you-Mortgage-e12g2i

See also: 

NEVER Borrow Money on Expensive Credit Cards to Buy Depreciating Consumer Goods

How to Make Money Online Without a Website or Inventing Your Own Product

2 Tips to Save and Make You Money

Model the Rich and Successful

Money Tips Daily If You Want To Be Wealthy Model Wealthy People

Welcome to Money Tips Daily. This is Money Kelly bringing you money tips to help save and make you more money!

The late Jim Rohn used to say that your income will be around the average of your close friends and where you will be in five years, will be determined by the books you read and the people you hang out with.

Brian Tracy expressed the same point more directly when he said “you can’t fly with Eagles when you’re scratching around with Turkeys”!

In other words, whether you like it or not, the people you spend the most time with have a profound effect on your behaviour, attitude and future success. Sooner or later, you will take on the characteristics of those around you. If you’re going to absorb the character and habits of anyone, you might as well make it someone successful.

Model Wealthy People

If you want to be wealthy, model wealthy people. If you want to be successful, model successful people and if you want to be a failure...fill in the blank.

How do you model the behaviour and habits of the rich and successful?

In my forthcoming book, Yes, Money Can Buy You Happiness, I talk about the “Millionaire Next Door” and the research carried out on the average wealthy people of America. In the groundbreaking book, The Millionaire Next Door: The surprising Secrets of America’s Wealthy, authors William D. Darko and Thomas J. Stanley, carried out extensive research to discover the real habits and traits of the typical American millionaire.

The results might surprise you. The average millionaire is not a sports star, celebrity or movie star.

A typical millionaire has worked hard to build up a business or career, is married to their childhood sweetheart, drives a modest car, is frugal with money, has saved between 10-20% of their income over a 20-30 year period and amassed a fortune in excess of $1 million.

They do not lead rock star lifestyles spending hundreds of dollars on fine wines and exclusive brands to impress their friends, or splash out on fancy new foreign cars every year and eat out in expensive restaurants every night.

They do, however, take the time to manage their money and investments, work hard on their business, spend time with their family and friends, go to church, synagogue or temple, and enjoy simple pleasures such as walking. Some would describe themselves as a “cheap date”!

An extreme example of this is seen in the lifestyle of the billionaire Warren Buffett who drives a simple American car, lives in the same house in his home town of Omaha he bought 40 years ago and eats in modest restaurants or grabs a Big Mac on the way to work. Unlike, most of his fellow billionaires he does not lead the flamboyant lifestyle enjoyed by the super rich and keeps his feet firmly on the ground.  

Contrary to popular belief, the average millionaire and multi-millionaire leads a fairly ordinary lifestyle. You probably wouldn’t even guess they were wealthy.

You can start modelling the habits of the ‘millionaire next door’ right now by following the 7 S Steps to Success:

1.      Stop spending indiscriminately and stick to a budget buying the things you need and can afford without going into debt.

2.      Spend wisely on quality, not luxury, things that last.

3.      Save 10-20% of your income or start on a smaller percentage.

4.      Save and Invest wisely and spend time looking after your investments.

5.      Start investing in yourself through education and development in your career or in your own business.

6.      Start leading a simple and stable home life 

7.      Spend time with the people that matter to you.

Action.  Follow this powerful technique used by successful people and athletes.

Look at where you are today and think about your habits and your actions that got you there. Now close your eyes and go forward in time. Visualise where you want to be in 1, 2 or 5 years time. What is your life like? Where do you live and who are you with? What are you doing in your life? Now look back from that point. What habits and actions got you to your ideal lifestyle? Follow this path and write down your goals and plans. Use a vision board and repeat the process every day.

Listen to this blog on my podcast:

https://anchor.fm/charles-kelly/episodes/18118c4?at=2721345

See also: 

How to Make Money Online Without a Website or Inventing Your Own Product

2 Tips to Save and Make You Money