5 areas of life to master to become a financial guru

Levelling-up to financial guru.

A lot of people get overwhelmed thinking about money. I ran a little research study a year ago which showed that most people worry about money at least weekly, and a fair chunk worry about it daily! Sounds exhausting.

Once broken down, however, it’s pretty simple to demystify your financial life. Money in the bank is an outcome of the things we do after all.

We’ve all got that friend who just always seems to have the financial part of their life together. Nothing seems to be a hassle. Financial decisions come easy and they seem completely in control. I think of these people as financial gurus! Here are 5 areas of life to master so YOU can become a financial guru:

  1. Budgeting, Planning and Forecasting: no one succeeded without a bit of a plan. If you don’t have a view of what’s coming in, what’s coming out and where you’re trying to get to then it’s pretty much impossible to manage your financial life properly. Financial gurus understand this- there’s a fair chance they’ve got a great excel spreadsheet somewhere with all this information in it.
  2. Income: where is your next dollar going to come from? Financial gurus understand how much they earn, where it comes from and create a plan for how they can increase their income.
  3. Spending: this one is simple — financial gurus live within their means. Spend less than you make and you’re saving money.
  4. Investing: where do you put your money so it’s working for you? You’ve probably heard people talk about the magic of ‘compounding’ right? Financial gurus understand what that means, and importantly, what that could mean for them in terms of money in the bank.
  5. Getting help: financial decisions tend to be the most complex. They include economic realities (like how much money you have in your account) but they also often include emotional considerations like wants and desires which are important to consider. Financial gurus have a network of people they can go to when they need help with those decisions. There’s often a time-cost to making them so these people need to be readily available.

Your financial life isn’t so mysterious when it’s broken into 5 areas is it? Master these things and you’ll be in control. Your friends might even call YOU a guru!

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