I wasn’t schooled in the fundamentals of wealth creation upon my entrance into college and probably many of you. I must say that most of my financial education hinged on observing what took place in my household. We were very frugal (Shopped in bulk, cut coupons, and carried a grocery list) and had to make the pennies stretch in order to create the balance needed for survival. My upbringing definitely could have included more financial education within its confines; but who do you blame the educational system or your parents? Regardless, of the answer you decided to come up with it’s never too late to begin learning how to manage your checkbook, check your credit report, create a savings goals, and prepare for your future.
“It is not real estate, stocks, mutual funds, businesses, or money that makes a person rich,” Kiyosaki writes. “It is information, knowledge, wisdom, and know-how, a.k.a. financial intelligence that makes one wealthy.”
Below are 10 financial principles that will prepare you for a greater financial future.
- Money does grow on trees (the seeds just have to be planted first) Make it your priority to understand the principle of seed, time and harvest; and know that zero seed equals zero harvest. It’s like walking into a bank trying to get $20 when you haven’t deposited any money; its unlawful and you will go to jail.
- Patience is a virtue (Save your money and let it grow over time) Albert Einstein said: "The most powerful force in the universe is compound interest" No get rich quick schemes please so leave the lottery alone!
- Money escapes the unskillful (Learn to manage your money before it manages you) You have to make sure that you don’t go out and buy a $30 dollar shirt and then won’t give $5 to a charitable cause; because that is dangerous and backwards. Use your money skillfully!
- Don’t be penny wise & pound foolish (Cautious with $10.00 but Careless with $100) Every dollar that comes into your possession is waiting to see how you handle it and whether it should go and tell its friends. Remember money wants a family!
- Become Resourceful (If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability." -Henry Ford) Start a business or write a movie script.
- Negotiate (Don’t be pushy, or aggressive just confident) If you are buying your first car or putting a down payment on an apartment; always get a price you are comfortable with.
- Become Aware (Make sure you are not consciously spending your future) If you have to take a small little notebook everywhere you go and keep track of every purchase you make do it. Don’t just wake up after a long weekend that you just partied and realize that you blew $50. That adds up quick and can cost you big down the stretch.
- Study a financial guru (i.e. David Ramsey) Use your library and the Internet to build your financial IQ. There are tons and tons of practical information on the internet that can help you to make the most of your financial education in college. Remember that your real education starts when you leave college so why not prepare now for your future.
- Understand that your health is wealth (stay physically fit and active) despite the talk about the freshman 15 and the sophomore 10 you can still make a conscious effort to remain fit. Each day will definitely bring a new set of circumstances and challenges with it; but you have to make sure that you keep your mind sharp and your energy up.
- Be Content (Hebrews 13:5 puts it succinctly: "Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee.") Live in the moment and be thankful for what you have. The trap of always needing to keep up with other people or having the latest fashion shouldn’t be the case.
“Academic qualifications are important and so is financial education. They’re both important and schools are forgetting one of them” ~Robert Kiyosaki!