Get Good with Money:Ten Simple Steps for Financial Wellness

Tiffany Aliche has won numerous awards for her work as a financial educator. Her company, The Budgetnista has created a global financial movement that has helped more than a million women to save and pay off their debts. She began her career as a teacher of preschoolers for ten years before cofounding an online school that teaches personal financial literacy. Her podcast and blog have received multiple awards and have been featured in The Wall Street Journal and The New York Times. She graduated from Montclair State University and Seton Hall University.

The main idea

It isn’t taught in school, but it should. When you become financially literate and “whole”, you will have more options.

It’s great that getting good at money doesn’t involve complicated money management or get-rich-quick plans. There are only ten basic principles you must master to be good with money.

It’s not about magic to get good at money, whether you are trying to get back on track with your finances or organize yourself for the first. It’s all about understanding the basics. The goal is not to retire on a yacht in Monaco or to get rich fast, but to be financially whole. Financially whole means you can see where you stand in terms of your dreams and that you know what you need to do. This state is achievable regardless of income, debt or credit rating! You can also become financially stable, even when you are in a financial mess, or if a con artist has swindled you into debt. My personal experience is what I’m saying! Financial wholeness can also be viewed as a way to crack the code to managing your money and achieving peace with your finances. This is both a road and a goal. This road map will guide you. Financial wholeness is not just about stabilizing one aspect of financial life. It’s about stabilizing all aspects.

Ten Steps to Financial Wholeness

Build a budget and automate it. Take control of your finances. This is a step that you can take to achieve your dreams. A well-planned budget will help you to achieve your goals.

Step 2 — BECOME GOOD AT SAVING – for protection. Your savings are rocket fuel for the future. Savings are a good cushion against unpredictability. Savings are not just to avoid spending money in the future but also to earn more.

The third step is to DIG OUT DEBT with an effective plan. Being debt-free may not be your ultimate goal. You want to eliminate and reduce your debt so that you have more money for growing your wealth.

Step #4 — BUILDING YOUR CREDIT SCORE — The Smart Way Good credit is essential. Good credit opens up doors to opportunities such as getting a job or owning a home. You want to improve your credit score.

Increase your income to become a better money manager. Earning more money is a great way to improve your financial situation.

Step #6 – INVEST LIKE A INSIDER – for retirement. Your goal is to be able to maintain your lifestyle when you retire. To do that, you must invest consistently.

Use insurance to manage risk. Insurance can be tricky. You may feel that it is a waste until you need to use it. But, life is unpredictable. Insurance is necessary to manage risks.

Establish NET WORTH GOALS and grow. Your net worth (your assets minus your liabilities) should and can be tracked at all times. Every day, make decisions that will help you move in the right direction.

Step #9 – PICK YOUR MONEY TEAMS — Financial Pros. To achieve your financial goals you will need to assemble a team of financial advisors. Assemble a team that includes professionals and A-players.

Step #10 – LEAVE A LEGACY – smart estate planning The last step to becoming financially complete is to decide what type of legacy you would like to leave. What are you hoping to achieve with the wealth that you have created?

Key Point

It’s not magic to be good at money management. Nor does it require you to have a million-dollar income. It’s not difficult to learn the basics.

Financially whole means you can reach your dreams and that you know where you stand on your journey. This state is achievable regardless of income, savings or credit rating! You can also become financially stable, even when you’re in a financial mess, or if a con artist has swindled you into debt. I can speak from experience!

I wish people could understand the true purpose of work. It is the purpose of work to own. One day, the things you own will grow to the point that they can put you out to work.