What Do You Want for Your Financial Future?
Episode #1 of the course Personal financial literacy: Take control of your future by Riley Burger
Welcome to the course!
I’m Riley, I have a passion for sharing personal financial literacy tools to help people accomplish their financial goals, no matter what those goals are.
Over the next ten days, you will learn the fundamental building blocks of personal financial literacy, along with strategies for implementing these concepts in the best way to accomplish your individual financial goals. This course covers the main topics that almost everyone will have to grapple with at some point in their lives, from basic budgeting and saving to building an investment portfolio, to preparing for life’s big expenses like buying a house, dealing with debt, and preparing for retirement.
Before we embark, I always find it helpful to first identify what it is you want from this course. There are three primary wealth-building stages I’ll use in these lessons, but don’t worry if you identify yourself between boxes or outside the box entirely. Every person has their own unique path and goals, and this course is only the first step.
Wealth-Building Stages
There are three primary wealth-building stages: stability building, wealth building, and consolidating.
Stability building:
Current financial position: You are building a foundation, entering or reentering the workforce, and/or have little to no savings.
Income: Your primary income comes from non-traditional sources: students; employees in the gig economy; part-time, seasonal, or otherwise inconsistent income.
Goals: saving; building credit; establishing healthy spending habits; building an investment portfolio.
Wealth building:
Current financial position: You have some savings, and are looking toward larger expenses.
Income: Your primary income comes from working or investing.
Goals: saving; paying off debts; large expenses such as a home or car; planning for retirement; building an investment portfolio.
Consolidating:
Current financial position: You have been saving and/or in the workforce for a while, and are now looking toward retirement.
Income: Your primary income comes from working or investing.
Goals: building an investment portfolio; looking toward retirement; large expenses such as a home or a car.
Questions to Ask Yourself
It would also be a great idea to make a list of things you may have been putting off that you want to get started. It’s important to note that financial “health” is not a goal or a finish line, but a continuous practice. Just like going to the gym or eating healthy foods, the most successful people are those who are willing to take small steps to incorporate conscious decision-making and planning into their everyday lives.
I would recommend taking out a notebook or opening up a Google Doc and asking yourself:
Where do I see my financial status in ten years?
Do you want to have all your debt paid off? Do you want to have a certain amount of money in your savings account? Do you want to own a home? Do you want to retire?
What do I want to change about my financial situation that I could change this week?
This is for tasks that will help you get the ball rolling on your personal financial literacy journey. Think setting up automatic payments for your bills, opening your first credit card, making a budget, or starting an emergency fund.
What do I want to change about my financial situation that I can take steps to change over the next weeks/months/year?
This is for tasks that require longer-term planning and a larger investment of your time—think setting up an investment portfolio, learning about passive income opportunities, or purchasing a car.
What long-term goals do I want to learn about now so I am prepared for them in the future?
This is for goals that don’t necessarily apply today, or even this year, but are definitely in your vision for the future. The sooner you start learning about these topics, the more confident and prepared you will be when the time comes. Depending on the stage of life you are in, think investing, preparing for being a parent, buying a house, or retirement.
Over the next ten days, use these answers as a checklist to help you identify the topics you want to get the most out of.
Tomorrow, we’ll discuss budgeting and saving, and get you started on solidifying your financial future!
Best,
Riley
Recommended book
Get a Financial Life by Beth Kobliner
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