When most young people hear the word finance they run in the opposite direction. I could even go as far to say that most young people are living way beyond their means and haven’t the slightest idea how to reverse the damage. And instead of educating ourselves about how to fix our financial woes, many continue to live a lie which will have dire consequences down the line. One of the main issues that I think needs to be addressed is the lack of financial literacy amongst young men and women. Life isn’t the fairytale that we read about in books, watch on the television or hear about in various genres of music. If you truly believe that spending your OSAP and or rent money on bottles at the club or splurging carelessly on bling and other fancy things is living “the good life”then I’m sorry to say that you are in for a rude awakening. However, the good news is that IT IS possible to turn things around!
So what is the first step? It all starts with figuring out what your definition of rich is. For example, I define rich in many ways, one of which is by having the freedom to choose what I want to do with my life and in order for me to achieve this goal, I am well aware that it is essential that I become more and more money conscious. I’m a woman, of course I love nice things, but I choose to be smart about how I go about acquiring those things. I haven’t always been smart about my money either, so I won’t even try to act like I’ve always had my life in order, but eventually, there came a time when I realized that I had to grow up, put my credit card on ice and make a few power moves.
Any amount of information on the most basic financial fundamentals is easily accessible through a financial advisor or online and by implementing these tips into your life, you will see how fast that debt decreases. For example, everyone should be reviewing interest rates right now, you would be surprised how easy they are to negotiate. Secondly, everyone over 18 needs a TFSA and if you are working you need an RRSP and should be contributing to these regularly because of the tax advantages. Take it from me, reaching out to a financial advisor is one of the smartest choices you’ll ever make. I would’ve never known any of this knowledge, if I didn’t have one. So I want to pass this information forward and get you excited to redefine the “F” word!
Why is this all relevant? These are the stepping-stones which will lead you into financial freedom. Right now anyone in their 20?s, I guarantee you, will not have the same priorities or live the same lifestyle once they enter their 30?s or 40?s. So why be a sucker for a fancy label right now? It’s just not worth it at the end of the day. The point here is that if you don’t understand money, you will always be a slave to it. Wealthy people don’t get wealthy by spending like every day’s their last. They get wealthy by saving!
Here’s a list of some awesome books to check out:
1. It’s Your Money: Becoming a woman for Independent Means By: Gail Vaz-Oxlade
2. The Money Book for the Young, Fabulous & Broke By: Suze Orman
3. Nice Girls Don’t Get Rich By: Lois P. Frankel