I don’t get why, but most people make personal finance much more difficult than it should be.
There’s no science behind it- Personal finance is not rocket science by any means.
Yet a lot of people look at it that way.
It’s much simpler than you think it is. That’s what I want to discuss in this post.
My Big Takeaways From An Old Podcast
Several years ago, I was listening to a podcast (no longer active) where the host talked about personal finance and money tips.
I remembered he didn’t go into too much jargon or made it super complex.
Who wants to make things complex when it comes to money management?
If you’re one of those people, we’re on the same page.
Anyway, the host talked about how personal finance is much easier to achieve these days.
He mentioned that you can read all of the books in the world that discuss personal finance.
While that’s nice, they’re useless if you don’t take any action.
All reading and passive learning won’t get you anywhere, which is why you need to take a better approach.
So rather than reading a bunch of books on finances, there’s a much simpler method to it.
I’ll never forget what the podcast host said (and it still echoes in my mind these days).
“You only need to follow these 3 tips to ensure financial success. If you do, you’ll never have to read another personal finance book again.
They are:
Spend less than you makeSave some money aside into an emergency fund (i.e. Rainy day)Invest the rest in things you understand.”
Those 3 things have stuck in my mind for the last several years, which have helped guide me to improving my financial situation.
Setting Yourself Up For Success
For most people, following these tips are not easy.
The first tip is one that most people can’t get over with.
With the borrowing and overconsumption society we live in, spending less is not desirable.
The second one is hard as well. Most people don’t even have $1000 to cover for an emergency- Let alone $500.
It shows how bad the financial situation is in the world, especially in the United States.
The last one, I believe, is the most important one.
Investing in things you understand the most can make a difference in your financial future.
If there’s something you don’t understand or don’t know where to start, the best thing to do is invest in yourself.
If you take the time to invest the rest of your money into yourself, it’s the greatest return you’ll ever get.
There’s no doubt about it, as it’s one that can take you far in life.
Either way, following these 3 tips will help you stay ahead of the financial curve.
It won’t be easy starting out, but it makes a difference later on.
Beyond My Purpose
I continue to follow these 3 tips for personal finance. The last few years have been remarkable.
It’s why I consider myself to be in better financial shape than most of my peers.
However, I want more people to have the same success as I have, so that they can be prosperous and live their best lives.
That’s goes behind my purpose to help young generations succeed in finances and build wealth.
Not just for themselves, but for their families as well.
Over the last year, I’ve made big strides in helping build wealth for myself.
I’m not rich, nor will I achieve it overnight. But I’ve made significant progress in achieving financial freedom.
My financial freedom date (September 2030) helps me stay focused on building wealth each and every single week.
I continue to do so by achieving at least 1% in weekly returns.
1% a week in small gains is a big win, and it’s makes a huge difference in the long-run.
What I do is the slow path to build wealth, without all of the stress and drama in life.
And it doesn’t take that much time at all.
As I mentioned, personal finance is not at all difficult. All you need is some time, a willingness to learn, make an effort, and stick to it in the long-run.
If you want to learn how you can start on that path, I have a free resource that you can use to see where 1% in weekly returns will take you.
I refer to it as the “Millionaire calculator”, and it’s so powerful to use.
I even find it addicting to use, as it’s powerful to see where 1% each week will eventually take you.
If that makes you curious, check it out by signing up for my email list.
You’ll get this incredible resource, plus some other bonuses as well.
Look forward to seeing you on the other side.
Until tomorrow,
-Eric
3 Tips To Lock In Financial Freedom was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.