For the Quora Question of the month, let's take a look at some of the things you may be afraid to ask. Remember any question that you're concerned to ask is probably one that many other people are also afraid of. If you're someone reading this who may not be familiar with finance terms, that is perfectly okay. Imagine attempting to reverse park a large bus (like the picture below) for the first time, you probably won't be very well versed at it, if you were to keep practising eventually you would get there. Personal finance and many other areas in life are the same, you've got to learn those fundamentals and keep building along the way.
Now what about those ten most important things about finance a non-finance person must know:
- It is less about what you earn and more about how much you spend
- Investing can and is scary although the alternative of running out of money can also be just as scary
- Diversification is great however ask questions about how the diversification you are looking at works
- Get clear on those goals and let your investments reflect your goals
- Pay yourself first, before you pay bills and expenses
- Ask the credentials of the "experts" or gurus and if they have done or achieved what you are looking to do
- It's not about the money, it's about the freedom and choices the money offers you
- Get a great team of experts around you, unfortunately you will probably not be able to do it all yourself
- Learn before you outsource. With Google there's plenty of information out there. Ask questions if you're not sure
- Adjust and reset where necessary based on your season of life
What are your thoughts on what a person who is a non finance professional should know about finance?
If you'd like us to expand further on any of the above drop us a comment.
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Thanks for reading and remember to live you Money Glee!