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What the Schools Will Never Teach You: 3 Well-Kept Secrets to Financial Success

When it comes to Money, Lifestyle and finance, in general, there are lots of financial secrets you may never find in theories, especially in schools- these secrets are financial hacks you must unlock yourself. How will you feel, finding yourself in huge student debt, after spending thousands on college or university and still unable to learn one of the biggest lessons of life? Here are some well-kept secrets to financial success that your schools may never teach you.

What the Schools Will Never Teach You: 3 Well-Kept Secrets to Financial Success - success visualisation image

Visualizing Your future is a Great Path to Financial Success

Some financial experts have been able to carry out a thorough investigation on how your financial success can become a manifestation, through continuous visualization. When you visualize, you become clear of your goals and begin to see yourself living in the future already. Many business and finance students are under-utilizing the tool of visualization but if you actually want financial growth, see yourself as of now in that very successful position.

When you see yourself in that financial success right now, you begin to attract individuals and new leads that will drive you towards achieving that dream- this is the simple law of attraction that no school will ever teach you.

There are Many Other Income Streams Besides the Regular White-collar Job

When you are growing up, your mind and brain will be conditioned towards studying hard in school, getting a good grade and landing a job in a company that pays well. The school will also teach you to do everything it takes to climb the corporate ladder, and then save money to become richer.

Most schools wouldn’t want to mention individuals who do not follow these stereotypical routines to become rich. as an adult, you are now beginning to realize that there are several other ways to make money and you even wished you have discovered these opportunities earlier on. The simple truth is that having multiple streams of income aside your regular job is the key to huge financial success. A side business makes you feel like a boss, aside from generating extra money for you.

There is a Correlation Between Emotion and Money

When you are in school, you may be hardly taught about the psychology of spending. When you become an adult, you learn the hard way that our emotions and spending are intertwined. You will hardly find teens and young adults who can control their emotions especially when they see things they like. Becoming a financial success has a lot to do with being financially disciplined. This means you should rather spend on what you need and not your wants.

In conclusion, you need to understand that money is a tool that you need to work with if you truly want to become financially successful. You need to re-educate yourself when it comes to making your money work for you. With the help of a financial advisor, there are several ways through which you can make your money work for you as a tool in order to become financially successful.

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Where Does Money Come From?

Nice infographic which shows the three main types of income and can help answer the question where does money come from?

http;//thefinancialfairytales.com where does money come from

3 types of income- where does money come from?

7 Essential Components For Financial Literacy

At the Financial Fairy Tales we welcome the news that the UK Government has begun a consultation into creating a compulsory Financial Literacy curriculum. Here we have an initial 7 points that are essential financial skills that all young people should leave school with.

1. Manage your money. Show your money who’s boss by putting a money management system in place. Divide your income into separate jars, money boxes or bank accounts. Take a proportion and save it. Take another and allocate that for investing. Then work out how much you need to spend on essentials. From the remainder you can put some aside for fun and leisure.

This simple system has several powerful principles, paying yourself first, creating a savings habit and being organised with your money and to spend less than you earn and invest the rest.

2. Know the true cost of buying on credit. The availability of easy credit has become a part of society. Don’t be tricked however into taking the short term view that the headline monthly payments are all matters. Buying an average car for example at 10% APR over 3 years could mean paying over £5000 extra. If that was the sticker price of the car then you may not be so keen to buy. Also consider that your circumstances may change, would you still want to be saddled with monthly debt repayments if you lost your job?

3. Be in control of your outgoings. The simple process of checking bank statements and credit card bills can ensure that you know where your money is going and can check for mistakes and anything suspicious. You may have unwanted direct debits which relate to cancelled agreements, such as gym memberships or mobile phone insurance. If you track and classify your outgoings, you may find that you are spending hundreds of pounds on lunch and coffee which you could bring from home.

4. Understand the financial realities of home ownership. For the majority buying a home is the biggest financial purchase of their lives. Many young people however are poorly equipped to understand the process or the numbers involved. It can be explained by imagining a dream home and then working backwards. With many lenders looking for a deposit of 20%, the prospective home owners need to first consider where they can obtain this and how long that might take. Then they can consider the amount of borrowing they can obtain, be that 3 or 4 times salary for example. Thirdly include the additional costs of insurance, utilities and council tax.

For many young people this will be an important wake up call, which can have a dramatic effect on career and education choices.

5. Develop multiple streams of income. All is not doom and gloom however, for the entrepreneurial minded there are an abundance of opportunities to make money either alongside or instead of a traditional career. A hobby or passionate interest can be translated into an income earning blog or website. Existing skills and talents can be taught to others at a fee, or new products and ideas brought to market. Long term investments in the stock market or property have historically yielded good returns. All of which can combine to supplement or replace traditional earned income.

6. Invest in your own education. For many learning stops once they leave school, if not before! By continuing to learn whether its job related or developing new skills you are capable of bringing more value to the market and subsequently will receive more reward.

7. Expect the best but prepare for the worst. When jobs are secure and house prices are rising it is easy to be lulled into a false sense of security. Many people released equity from the homes to cover consumer debt, secure in the knowledge that they could meet the monthly payments and maybe even reduce their outgoings in the short term. When the economic climate changed however there was a new reality.

In uncertain times it is better to expect the best but prepare for the worst, by saving an emergency fund which could support you for several months if you lost your job or to give you the freedom of trying something new. So too is insurance important, covering sickness or unemployment. Developing multiple streams of income as outlined about is another way of spreading the risk and not being over reliant on one source.