Reason for this Goal: Once you graduate from school and start living on your own, your ability to understand and manage your money will have a massive impact on the rest of your life. If you’re like most people, you’ve had very little formal education on how money works and how to manage it. You may be craving free financial advice. Either you learn to manage your money, or money will manage you.
Whether you’re still in your teenage years or you’re in your middle years, it’s not too late to understand money, but the earlier you learn is definitely better. Make it an important goal to learn about money and how to earn and grow it. Some of the things you will want to learn personal finance 101 about include:
1. Different types of income
2. The magic of compound interest
3. Your credit rating and why it’s important
4. The difference between good debt and bad debt
5. Mortgages and what you need to know about them
6. Credit cards and how to use them properly
7. Taxes and some common tax strategies
8. The best way to grow (invest) your money
9. Why you must spend less than you earn, and avoid excess materialism
10. The tools to help you track your money
This goal is not to be taken lightly. The sooner you learn about these principles, the better. It could mean the difference between you retiring broke or as a millionaire. There are hundreds, and possibly thousands, of books, teachers, and websites devoted to this. The truth is that most people do not have strong financial literacy. Don’t let that be you.
Suggested Goal(s): Read a
book that covers these financial topics.
Your Outrageous Goal: Teach your family and friends about personal finance.
Return to financial goals.