Previously you learned you’ve begun a life-long relationship with money, and that the number of years it takes to achieve “financial independence” can be conveniently related to the 26+ miles of a marathon. Over the course of this marathon there will be ups and downs, and your preparation in the lead-up to it is extremely important.
The good news? You are probably already prepared for the start of this race.
You’ve invested a good portion of your childhood learning “reading, writing and ‘rithmetic” in school. Mom n’ Dad have also taught you about a whole host of socially relevant things (e.g., being a good person, right from wrong, etc.) that require concerted effort on your part to master, and you’ve still got some valuable stuff to learn in college. Yet, some of the easiest things you’ve learned along the way are the most important for starting the Money Marathon. Things like:
- Don’t cross a busy street before looking both ways
- Don’t get in a stranger’s car (yeah, I know…Uber…how the world has changed)
- Don’t open emails from people you don’t know
- If a deal looks too good to be true, it probably is
- Don’t do a handstand on the edge of a cliff
- Don’t be a Dodger fan
OK, the last one probably doesn’t belong, but hey, when they repeatedly rip your heart out year after year, you can probably see the connection. No? OK… I’ll help.
All of these things are potential causes of otherwise easily avoidable pain.
If the potential benefit of a choice is greatly outweighed by its risks, you should probably pass. That’s just common sense, and when you can apply a good dose of common sense to your decision-making, you are prepared to enter the marathon relationship with your money. It’s that simple!
If you lack common sense, it’s time to start picking some of it up. It begins with having a healthy dose of skepticism and an general understanding of human nature – knowing what intrinsic motivations are really behind someone’s actions and words. Often things are not what they seem, and what feels good in the moment may not be great in the long run. In other words, be on the look-out for scams and feel-good-in-the-moment Pits of Pain.
But, enough on street smarts..from here on forward we’ll assume that you’ve already passed all your common sense pre-reqs and you’re ready to make some money decisions. What you need now are the important considerations and specific actions to navigate the life-long Money Marathon well, and that’s the purpose of these shorts: To provide you with guidance for building a healthy relationship with your money via the right choices and actions such that you reach “financial independence” by your mid-40s.
Make the right choices, and money will be your ally for life. Almost everything about life, even the tough parts, will be easier when your relationship with your money is healthy and strong. Make the wrong choices, and well…you’ll fall into the Pits of Pain.
So it is that I’ve assembled the list below outlining 10 actions and/or decisions that will help you to build a healthy relationship with your money. It is by no means comprehensive. There is plenty more to learn about money, but it’s a start, and hopefully will lead you to further your education on money beyond these posts.
10 Actions for a Healthy Relationship with Your Money
- Have $0 college debt
- Choose an inspiring & practical career path
- Always spend less than you earn
- Budget! – Understand how to track your income & expenses
- Establish simple credit and pay the bill in full every month
- Fund your retirement
- Invest your savings and put your money to work for you
- Build an emergency fund (sorta)
- Have a “side hustle” or second income stream
- Protect your money and your loved ones
The Money Marathon 