April is officially financial literacy month, we will spend most of this month discussing and covering some basic, yet important financial concepts. Financial Literacy month is a great time to get a handle on your finances; there will be thousands of published articles tackling financial issues from different angles. Take this opportunity to learn new financial concepts and make changes as needed. As stated earlier, we will spend most of this month discussing some basic financial concepts so stay tuned. If there are any topics or issues you’d like us to cover please feel free to contact us and we’ll try our best to fit them in.

Your Money Attitude

The first and most important issue to tackle is your money attitude. As I have mentioned many times before, personal finance is at least 50% psychological. So it is important to uncover the underlying psychological thought process in regards to money before you jump into changing your financial habits. It’s great to have a good grasp of basic and important financial concepts, however you need to understand your money attitude. Why do you feel the way you do about money? Why and how has your spending habits developed? This requires some self-psychoanalysis, however the results can have a profound impact on your financial life.

A Financial Plan

Second step is to develop a financial plan to keep you on track. A common misconception is that a financial plan is only for the rich, which I find absurd. A financial plan is a tool to help you reach a financial goal, although the end goals of a wealthy and middle class individual maybe different, a plan is still needed to reach that goal. Financial plan is for everyone, the rich and especially the not so rich. We will discuss financial planning in more detail in the next few days.

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Ray

Ray

Ray is an ex-financial adviser and the founder of Financial Highway. Currently working in the financial industry and working towards completing his Chartered Financial Analyst, CFA, designation.