During the daily work with financial education, we all come across a lot of opportunities to meet people not so famous. Some of these people undoubtedly manage to overcome the poverty barrier. With great intelligence and disposition they take advantage of some personal characteristics to change their own history.
There are five fundamental attitudes that are essential to change a person financially:
- Start early to save money and invest
Lack of investment culture and planning means that most people do not enter the job market with the idea of saving a percentage of income and investing.
Those who start saving early have at their disposal two great opportunities. The first one is time, which is one of the secrets of success, and the chance to diversify and take more risks, thus taking advantage of opportunities that arise in times of crisis.
Investing early should be something as natural as consuming, and thus, make people successful. People who perceive and start investing being young, achieve massive wealth throughout their lives.
- Accept that your parents may not give the best advice on finances
The counselling of parents, always rich in wisdom and love, are very valuable because they are the individuals who have been collecting all kind of experiences throughout their lives.
Most of our parents lived their youth and early adulthood during the 1980s and part of the 1990s. At that time, from over inflation, immediate consumption was the need to survive and investment was something out of the reach of most people. The limited resources were being utilized to buy a property or “saved” in the savings account.
The time has changed, but the culture of consumption has remained the same: the opportunity to plan and live in a reality with controlled inflation was not practiced. The attitudes of survival of the past were marked as blunders and these blunders were passed on to the children, or the generation of young people living among us today.
Some absolute (absurd) truths, “automobile as an investment; the purchase of own house; and the savings account the best and safest investment have ceased to be true”.
Even through education and respect, it is always important to listen to the advice of the parents. But in the current economic scenario it is fundamental to be guided by experts in the subject. With a little interest, you can also dedicate a little time and search great books and even free high quality material on the internet.
The responsibility to change this culture is ours; so that, we can give better advice about money to the new generations.
- Look after your own future before thinking about your children’s financial future
Another important item that deals with the relationship of parents and children is the logic that parents always want the best for their children. This is also an excuse to neglect their own financial future.
It is always worth remembering that child cannot be treated as an investment. Those who give up taking care of their own future need to understand that sooner or later it will become a problem for the child. An expense that they will have to assume since it is very difficult to maintain the standard of living only with official retirement.
- Accept that it is vital to take risks throughout life
Not infrequently, when an opportunity arises to change jobs or start a new business, we choose to stay within the so-called comfort zone. This is usually either out of fear of the unknown or out of self-indulgence.
People who change fate and thrive in life have always made some difficult choices. Often, they chose to take risks because they were prepared for what would happen, even if it means stepping back at a particular moment.
To take risks is at the bottom to be able to deal maturely with failure and with frustration. It is pretty obvious that there will always be a chance to start over and turn around. It is significant that it is more important to be happy than to be right.
- Always take care of your name, as it is your biggest asset
Whoever works and lives with this thought will suffer a lot in the course of life. The good payer, the one who honors and obeys the contracts and deadlines, will always have cheap and available credit when he needs it. This is not to mention the calm conscience and the example that will be passed on.
Another important item also related to our name concerns the irrevocable decision not to “lend” it to friends and relatives. You should never “lend” your name to loans and purchases. Never!
To preserve friendship and good family relationships, the best way is always to make it clear at the outset that you do not agree to this type of procedure and will simply not do so under any circumstances.
The beginning is always the most difficult period, after all putting into practice the financial education does not always seem the most pleasurable alternative. Enriching is a matter of personal choice and for most people who decide to walk this path, it will take a long time to get there. While many people do not even know what they really want, others measure their determination and ambition in the right measure.