If you’re in your 40s or 50s and find yourself way behind on your savings or retirement fund, it’s probably not because you didn’t earn enough. You probably just didn’t plan well enough with what you had. This is why your level of financial literacy is more important than your level of income.
Income Isn’t the Most Important Thing
I work with folks to build businesses so they can increase their income and catch up or maybe even get ahead on their retirement savings. But here’s the thing – if you don’t understand the basics of financial literacy, it doesn’t matter how much you earn. Your spending habits will have you living paycheck to paycheck, no matter how big that paycheck grows to be.
You’ve heard the stories: people out there making half a million dollars a year who are broke. They have the big house, the second home, the long vacations, and the expensive cars, boats and whatever. They earn a lot and they spend a lot, leaving them in the same financial position as someone making a fraction of their income.
You’ve probably heard it before; It’s not how much you make; it’s how well you manage what you make.
What You Do With Your Income Makes the Difference
That’s why there are millionaires who never earned big incomes. What they did have was an understanding of financial literacy – budgeting, saving, investing, and planning for the future. And that made all the difference.
If you want to change your financial situation, start by changing your financial habits. If you really want to get rich, there are things to learn even before you’re making the big bucks. Learn how to budget effectively, cut unnecessary expenses, get rid of consumer debt and save consistently. Understand the importance of investing and letting your money work for you.
It’s never too late to start. It’s harder when you start later, but that’s still way better than never starting at all and staying broke forever. Take control of your finances now. Start small if you have to, but start. Every little bit helps. With the right knowledge and habits, you can turn things around, build a secure future, and even get ahead.
Don’t wait. Study financial literacy as hard as you study marketing tactics and start making better choices with your money today. Future you will thank you.
