Look, some people reading this will hate what we are about to say but we’ve found that it’s always best to share what you feel needs to be shared.
Here it is…
You can’t depend on other people for your financial well being. Not the company you work for, not the Conservatives or the Liberals, not your family.
A story for you…
A good friend got a promotion a while back and couldn’t hold back his delight. We could understand, we used to be the same way.
But then something hit us in the head one day (maybe the sky was falling that day!) and we realized that if you get a raise your standard of living likely increases along with that raise.
No matter how many books about saving you have read, you’ll likely go out a buy that new cell phone with the larger data package or that 52″ Plasma you’ve been dreaming about since you saw it you friend’s house.
Maybe you even book a little vacation to Cuba and for you Americans reading this…maybe it’s the Bahamas 😉
So you end up spending more money.
You are MORE dependent on your income than you were before.
Your raise has increased your dependence on your income. Not decreased it.
Your raise has chained you even more closely to your job. The shackles grow stronger.
With the family to support and the mortgage on the house you feel locked in. No options.
And then if the financial markets hit some tough times, like they are today, your company sponsored RRSP plan doesn’t look so promising any more.
Look, you need to take control of your own financial future.
If you’re looking to start this process, and it really is a process, here are some ideas to think about:
1. You must read biographies of people who have accomplished what you want to accomplish. They are the most revealing and most instructive because they give you direct insight into the thought processes and decision making used. Start with people like Richard Branson or Warren Buffet or Ted Rogers (Rogers Wireless).
2. If you are at the stage that you really need some motivation then spend a few months on goal setting and reading. Although Robert Kiyosaki’s books get a lot of flack for not being detailed enough they are great for thinking big. Start with Rich Dad, Poor Dad and make sure you read his book titled, Cashflow Quadrant. Don’t spend more than six months on goal setting. Anything longer is a waste of time.
3. Instead of using newspaper articles to make your opinions read the reports that the articles are based on. For example, you can read reports directly from top economists at every bank’s website. Click here to see TD’s weekly bottom line (click Weekly Bottom Line on the right hand side).