Financial Literacy Month Teaches Important Lessons For All Americans

By Patrick Bet-David

Turn on the television or read the newspaper at any given time, and there are plenty of stories that have to do with money. Unfortunately, it’s usually negative news how people don’t have enough money and are struggling to get by. Sadly, the richest country in the world has plenty of people living in poverty. People everywhere are struggling with credit card debt, car payments, education loans and for the average person getting financially ahead seems impossible.

This April is National Financial Literacy month, and whether your finances are in order or not, it’s a good reminder for everyone to not only understand the basics of money, but to think about how to acquire more.

I grew up in Iran and the work ethic over there is completely different. My dad would leave very early in the morning and come home very late at night, and the only day I would see him was on Friday, the one day he was off from work. When you see Middle Easterners having so much success in America, it’s their amazing work ethic. They’re used to working six days a week and they don’t understand the 9-5 work philosophy of Americans.

The good news is there are some simple things everyone can do to take control of their financial situation:

Look for new ways to earn money

Americans seem so focused on saving money. If you’re not earning enough money, how can you save any money? If you’re serious about getting ahead, start a side business learning to cut hair, selling jewelry or iPhone cases, cleaning houses or whatever. It doesn’t matter what. Just start a business! With the opportunities presented by today’s technology, it isn’t that hard to do.

Next time you’re inclined to complain about not having enough money, really ask yourself if you’re doing everything you can to make more. Don’t be afraid to start a business, either. While it’s true that many small businesses fail, sometimes you just have to take the leap. Being successful in business can lead to a world of riches and opportunity.

Ignore the Joneses

We all know the expression, but the best advice is to ignore the Joneses altogether and live your own life. Get rid of the things you really don’t need. Cancel your cable TV. Stop drinking soda. Cut out Starbucks. Are you really using that pricey gym membership? Do you really need a landline these days? Only spend money on the basic essentials and don’t think of buying the extras until you have enough money than you know what to do with.

Be a smarter shopper

Make a promise to never pay retail for something and become a better buyer using websites like Overstock, Craigslist and eBay. Thanks to the Internet, getting a deal on items has become more commonplace. When you need to make a purchase, shop around. That savings will start to add up after a while.

Set your expectations high

Do you believe you can make one-million dollars? People usually make the amount of money they feel they are worth, and most people sell themselves short. If you have a high self-image, you will create a world for yourself that meets that self-image. Stop bringing yourself down and start building yourself up. Set your expectations high. Tell yourself you’re going to make $500,000 this year. You might not actually make that much, but you’ll be in the right frame of mind to start thinking like a success.

Get thick on cash

The notion that the American Dream is linked to buying a home is ridiculous. About 90 percent of middle-class America buys too early. When you have three years of your mortgage payment saved in cash, then you can buy a house. It’s much better to have liquidity. Cash gives you freedom. Get thick with cash before you think about major mortgage debt.

Both urgency and patience is important

Have patience while choosing what to do to make your money. Wealthy people typically choose one industry and become the best at it, and this can take time. Act with urgency because people think they have a lot of time when they really don’t. Finding the right balance of urgency and patience will help put you on the road to financial freedom.

As Financial Literacy Month approaches, make a commitment to better your financial situation. Making small changes in your lifestyle and spending habits, while looking for new ways to earn more money will change your life.

 

Patrick Bet-David is an entrepreneur, author and self-made success who emigrated from war-torn Iran to the U.S. and has made financial literacy his personal crusade. He came to America with nothing and built a financial services marketing empire, the PHP Agency. He is author of The Next Perfect Storm and Doing The Impossible. Visit http://www.patrickbetdavid.com/ and http://goasknewton.com/