Have you ever thought about how expensive ignorance is?
It is expensive on two fronts- the actual cost of the money wasted and the emotional cost of discovering you were taken advantage of.
Let’s consider two women in their late twenties.
Sally took the time to learn about money, created a budget, started forecasting how she would spend her income, allocated her income when she received it, and followed her plan.
Betty did not bother with a budget. She spent freely, and as long as there was money in her account and credit on her credit card, she was good. Occasionally she would run short, have a nonsufficient fund fee or a late fee, but overall she felt she was fiscally responsible because she paid her bills on time.
By the time they are in their mid-forties, Betty realizes she cannot buy a home and she is not even sure if she will be able to retire. She has had a lot of fun, but her debt-to-income ratio is high and she does not have any real savings. Sally is well on her way to a comfortable retirement, including having her mortgage paid off in plenty of time, and she has several revenue streams that make it possible not to have to save quite so much to meet her retirement income goals.
Betty realizes the last ten years of rent would have paid for a nice house. And, worst of all, she now has to change her standard of living if she wants to possibly retire. This is even more difficult because her family has been used to living this way for years and they do not particularly buy in to this new lifestyle that seems really strict and boring.
The best time to learn about money, finances, and investing is when you are young and before you have become entrenched in your habits. The next best time is right now. Wherever you are and whatever your financial situation, start learning. If you have learned a little, now is a great time to learn some more.
If you are not sure where to start, please contact me for a free First Steps financial strategy call.
If you are ready to learn, my Money Mom Academy will be opening its doors in just a couple weeks. This is an 8 module, self-paced course with ongoing weekly group calls, a private facebook community, and lots of support. It is set up so you will never outgrow the course and you can retake it as many times as you like, diving deeper each time. As soon as we can travel again there will be annual retreats added as well. To see if you are a good fit, please contact me.
Are you a Sally or a Betty?