Financial Management - A Key Life Skill

Money makes the world go around, and while there have been people who have said that "money does not bring happiness", the reality is that those who do not master the financial game will live a life full of uncertainty, poverty, and worst of all: an inability to truly reach their potential as human beings.

The cold hard truth is that we all want to be rich, but statistics and economics show that only a handful of us will ever reach it; the majority will simply always be out of reach.

One reason for this is an inability to properly manage one's financial resources. Generally college does not teach its students, the ability to handle their money.

It is true that a student majoring in finance, business, accounting, or economics will learn more about this subject than most, but only a percentage of college students are majoring in these areas, and this leaves out the rest of those who are not.

People often tell that money does not mean anything to them, but in reality money means something whether you think it is important to you or not. Without money, you cannot buy food, cannot travel, cannot enjoy cutting edge technologies, cannot pay for medical costs, and so on.

Those who do not have money tend to be wanting, while those who have money tend to be masters of their finances.

Having said that, the first step in learning financial management is to learn budgeting. You need to know how much you are spending on any given item on a regular basis.

Once you are able to discover how much you are spending on food, electricity, water, and other things, you will be able to develop a budget which will allow you to control your spending, which will further allow you to save money. It is also important to understand the importance of saving money as opposed to borrowing it.

Unfortunately, we live in a society today which is debt based, and people are encouraged to borrow as opposed to saving. Borrowing money will lead to a lifetime of debt and more debt.

Most people today, especially those living in the U.S. or Europe, are in debt bondage. They live in houses they do not own, drive cars that do not belong to them, and use money (called credit), to buy everyday goods.

This money or credit does not actually belong to them, but is loaned to them by banks, which then turn around and charge them compounding interest to use it.

Many people end up taking on so much debt that a huge portion of their income must go back to repaying it. these individuals become dependent on a bank or loan company to fund their lifestyle.

In contrast, an individual who is debt free and thrifty is a person who is a master of his finance. Such individuals owe nothing to no one, and they can pay for everything they need in cash.

The money that they save is a superior form of capital when compared to credit, and this capital can be used to make investments which can lead to in an increase in one's income, which can be used for saving and more investments.

This is the basic formula towards becoming wealthy. While there is a large amount of financial advice available out there, some of which is highly complicated, the simple way to wealth is to save a lot, stay out of debt, and invest.

Studying economics can actually be quite valuable If you have the time or inclination, it would not hurt to read some books on economics.

Understanding basic economics does not require one to be a rocket scientist, and you will find yourself becoming even better with finance as a result.

Once you understand how economies function, you will be capable of making prudent investment decisions which can allow you to master the finance game.

Importance of Adjusting to Changes

The legendary actor and martial artist Bruce Lee is famous for speaking about the flexibility of water, and how everyone should strive to be like it. After all, water does not have any set shape, and it conforms to whatever container it is placed in.

Not only is this statement applicable to the martial arts, but it is also connected to one essential life skill: the ability to adapt to change. Being able to adapt to the changing times is one of the most essential skills that a person can have.

Those who are not able to adapt, are very likely to get extinct sooner then those who are able to adapt. From warfare to science, technology, and politics, history has shown that those who are too tied to the past are bound to be left in the past.

One key factor that allowed Napoleon to crush his enemies was his ability to break away from the past; Napoleon developed military strategies which were revolutionary for the time, and his enemies, who were stuck in the "old fashioned" way of doing things, quickly succumbed to his forces when faced with their high speed movements.

Today, technology is changing at such a rapid pace that many traditional colleges and universities, which in the past were considered to be on the cutting edge of education, are being left in the dust. If you are able to adapt to the times and change when it is time to change, there is no limit to the power and success that you can achieve.

Being able to adapt is difficult for most humans, and the reason for this is because humans are creatures of habit; having to change our patterns and behaviours is frustrating and annoying. To illustrate this, most of us get annoyed with our bosses when we suddenly have to change the way we have been working.

We would really simply prefer to keep doing things the old way, since this allows us to stay in our comfort zone. Very few are able to cope without distress after being forced out of their comfort zone, However, it is important to know when to adapt, and when not to.

Adapting to the changing times is not always the wisest course of action. While the need to adapt to change is good in most cases, it should be done with a level of caution.

There are times when adapting to changes can bring more harm than good. To give an example, have you ever been in a situation where everything was fine, but you decided to change it for whatever reason, and your attempts to change it ended up making it worse?

As the old saying goes: if it are not broke, do not fix it. Change is only effective when it is absolutely necessary. Trying to fix a system that is not broken is a total waste of time. To understand this, think of technology.

Many people today are obsessed with the latest technological gadgets and gizmos. They run out and spend literally thousands of dollars on gadgets that are cool to have, but are not really needed.

While there are some fundamental tools that one does not want to be without today (such as a computer for instance), many of the gadgets and gizmos which people buy are a complete waste of money. For instance, there is no "real" difference between a $400 cell phone and a $20 one, both are designed to do the same basic thing, which is to make phone calls!

The people who waste money on these gadgets think that they are "adapting to the times," but in reality, they are making changes which are unnecessary. The only time that you should upgrade your technology is when the current technology is simply not efficient enough to help you accomplish your goals.

Just because a gadget company makes a change does not mean that the change is good for you. When those around your are adapting to the times, you must logically decide whether or not you should do the same. However, no matter what you do, never adapt to the changing times just because others around you are doing so.


Adapting to change should be done based on logic, not emotion. Many people refuse to change with the times because of an emotional attachment to the past. This is dangerous, since the past is the past, it is always prudent to look at present and also ahead on the future.

The past is something that cannot be changed, and those who are stuck in it are often doomed. As you become older, it becomes even more important for you to avoid being tied to the past, as this problem is more pronounced in older people than it is in the younger generation.

How to Work with People

To be successful in life, you are required to work with people. While college courses sometimes give students projects that must be completed within groups, in reality you are required to do more than simply be capable of working in a team.

Not only must you be able to work in a group, but you must also be capable of dealing with people, including those who are difficult.

Unfortunately, there are certain types of people in our world today who like to take advantage of others. When meeting you, they will instantly size you up to determine whether or not a person is weak or not, and if they detect an individual who is timid, they will attempt to take advantage of him in a number of ways.

There is little you can do to avoid these types, however you can be cautious and guard yourself against such persons. An additional thing to keep in mind is that it may not be immediately obvious that you are dealing with this type.

The best way to deal with such individuals is to be assertive. Be clear about what you want, and never waver on anything.

You should always be willing to walk away from any project or deal if the other party is unwilling to treat you with respect. No matter what you do when dealing with this type of individual, you should never let your temper get the best of you.

When you get angry, your options may fail. Often in life people will give you a hard time about every little thing, they make you angry but you must never allow them to see your anger or argue with them.

While you always have the option of walking away, these people may be valuable due to their money or business connections, so winning them over is more valuable over the long term.

There are also people in this world who confuse kindness and patience of weakness. They assume that because you are soft spoken, or you do not mind waiting, they can walk all over you. Again, you must show these people, without becoming visibly upset with them, that you will not allow this type of treatment.

It is better to show them as opposed to telling them; remember, your actions always speak louder than your words. If you do business with a lot of people, it will also be necessary for you to sign contracts and agreements. We live in a very litigious society and it is recommended to always do business with a contract.

It does not matter whether it is friends or family, or if you like the person you are dealing with. Always sign a contract which is clear and concise, so if something goes wrong, you can hold it up in a court of law, showing the judge that the other party agreed to the terms of the document.

Without a contract, it is always your word versus theirs, and no judge really wants to hear this. They want to see evidence, and having the right evidence is what will allow you to win cases. To be successful in this world, you must gain the respect of others.

The problem is, becoming angry and allowing your temper to get the best of you can always destroy bridges built with trust and respect between people and lead to other problems.


The essence of dealing with others is to control your emotions. On your path to money and success, you will run into difficult people. You can always avoid them, but doing so may kill valuable business relationships which can allow you to make it to the next level.

Therefore, when you become upset with someone who you feel does not respect you, take the time to figure out how to handle the situation in a logical manner.

The Power of Leadership

Leadership is one of those skills that is often hard for everyone to learn in school; many believe that you either have it or you do not. While there may be some truth to this, it is possible for any individual to become an effective leader, so long as they cultivate the many traits and views that successful leaders have.

While there are many definitions which are used to describe leadership, it is "the ability to persuade a group of people in a manner which allows a specific goal to be reached." While there are many different types of leaders, this definition clearly describes the primary outcome that they all share.

If you are capable of influencing others around you in a manner that allows you to achieve your goals, then it can be said that you have leadership skill. There is no set formula that one follows to become a leader, and the skills which are required for leadership cannot easily be taught in a classroom.

The greatest leaders tend to be those that have a natural gift; many leaders are highly charismatic. There are many styles of leadership, some of the fundamental traits that all leaders share, which you can apply in your own life are outlined here below.

Power of Discipline

Leaders have extensive amount of discipline. No one can lead others if they cannot first lead themselves. If you are the type of person who has to be told what to do all the time, then you are not a leader, but a follower.

If a leader knows that they need to wake up at a certain time in order to get an important task completed, then they will do so. If they know that they need to be working on a specific project at a certain time, no one has to tell them to do so; they just automatically know to do it. The first traits common among leaders is that they tend to be full of both discipline and the ability to lead themselves.

Strength and Wisdom

Two other traits which are common among leaders is both strength and wisdom. When one studies history, this becomes obvious: those who were promoted to the rank of general in most societies throughout history have been men who were brave, strong, and battle tested. No one wanted a general who was weak and inexperienced. In addition to this, no soldier wishes to fight under a general who was unwise.

A wise person is often promoted to leadership positions since they often make wise decisions which benefit themselves and those under them. This is also why many societies throughout history selected older men to be elders of the tribe, since they had lived many years and had knowledge, wisdom, and experience with regard to many matters.

Being a strong leader does not necessarily mean that you need to be physically strong, or have a powerful physical presence; it could simply mean having a strong mind, being resolute in your thought process. While having physical strength can be helpful, it is only one factor which is effective in strong leaders.

Wisdom is equally, if not more important than physical strength, since a wise general can keep his men alive, and a wise CEO can keep his company and employees profitable and employed.

People often rally under a wise leader because the leader can give them a sense of security; In a harsh world where hardly anything is certain, and where people aspire to improve their lot in life, the man or woman who displays strength and wisdom will be followed, so that their followers can reap the benefits of their wisdom.

However, a key thing that one must always keep in mind is that while leaders may enjoy many privileges, including fame and wealth, their position also comes with a great deal of responsibility, as well as risk.


Leadership Dangers

While leaders enjoy many privileges, their power comes along with huge responsibility; they are obliged to serve those who put them into power. If a leader makes bad decisions which hurts those beneath him, he is subject to being overthrown and replaced by a leader who is more effective.

If the leader becomes abusive, or uses his power in a corrupt way, again, sooner or later he will be crushed and overthrown. While a leader often gets the praise and benefit from any achievement his group accomplishes, when things go wrong, and the group is not successful, the leader is the person who will often be primarily blamed, and may be most likely to fall.

Essential Life Skills

Life skills are some of the most important skills you can have. One thing which separates life skills from the skills that we learn in school is that life skills tend to be things which are hard to teach in a classroom, skills that will most often be learned through experience alone.

Handling Work

One such skill is learning how to handle work. In real life scenario, anytime that you think that you have got to a point in a project where you think it is fully completed, there will always be more work that can be done, extra effort that can be put in-order to take it a class above the rest. Contrary to this, in college, students are given projects that must be definitively completed at a specific time.

While project deadlines also exist in the real world, the work is never quite finished. There will always be more that you can complete, and you should think of life in terms of ever increasing experiences which allow you to learn more about the world you live in.

Handling People

An important life skill is learning how to handle people. When it comes to handling people you must always keep in mind is that people are non-altruistic, and will do things primarily for their own self interest.

One thing that is found to be interesting is that many people, particularly those who are unsuccessful, go throughout life making decisions based on emotions, as opposed to logic. Many people look out for their own self interest, not yours.

While emotions are inevitable, they also make humans weak. A computer or machine does not factor in emotion into its decision making process; its decision on whether or not to carry out a function is based on cold hard logic.

You must keep in mind when doing business in this world is that people are looking out for themselves; if they need to rip you off in order to get something they want, many of them have no problem doing so. Therefore, you must always protect yourself and try to make critical decisions based on logic and never emotion.

Never think that people care about you because you are a nice person, or because they just like associating with you. While it is true that you attract more people when you are sociable, people in most cases will only deal with you if there is something they can get out of it. If they cannot get anything out of it, then they may not deal with you.

When dealing with people, never deal with them in terms of emotion. The people you deal with should be useful to you; if they are not, then you have no business dealing with them.

Friendship

Friendships should be handled with caution; friends tend to become jealous and patronizing, and because they know you as a person, they can sometimes be more dangerous than your enemies.

Always watch friends carefully, and be prepared to discard of them if they become problematic. Never continue dealing with a friend simply because of any emotional attachment you have to them, think logically.

Good Grades

Having good grades will not make you successful, but it will get you a job

In college, many students are obsessed with having a high GPA. They thought that by maintaining a high grade point average, they would have more job opportunities. They are right, they will have more job opportunities, to work as an employee for someone else.

Having a college degree will not guarantee that you will become the CEO of a company; the fact of the matter is that most of these students end up becoming employees who work under a person who never even graduated from college.

Having good grades only shows that you are good at following directions, at memorizing facts and concepts.

The problem with getting good grades is that it does not teach you how to take risks, or how to become a leader. This is something that can only be learned out in the real world, you can only learn how to lead or deal with risk by having experience, it is something that you acquire as you progress.

Because high GPA students seldom learn how to lead or face risks, they are often the least likely to establish their own companies, since it is easier and less risky to simply go work for someone else.

Life Skills For Success

There are a number of skills that you will need to develop in life if you wish to be successful with anything, and the bad news is that most of these skills are not taught in colleges and universities. One skill that is extremely valuable is public speaking.

If you have the ability to speak in a persuasive manner, and convey your ideas to an audience, then you have the potential to achieve an enormous amount of success.

Those who are good with public speaking tend to be those that have confidence in themselves, and they tend to be people who are a delight to be around.

If you are good at speaking, this means that you are a skilled salesperson, and are capable of selling practically anything, whether it be products or ideas.

Public speaking is also a powerful way to market yourself because you never know who is sitting in your audience.

If you are giving a speech about an investment idea you have which needs capital in order to take off, for all you know, the wealthy investor may be sitting in the audience, and if you speak well, you may meet them after you're done speaking.

Another skill, one which is closely related to public speaking, is the ability to write. When you are a good writer, you can easily sell products and ideas, and you will convey your thoughts much more effectively than someone who writes poorly. However, being a good writer requires you to do more than just learn grammar.

Being a truly good writer requires you to be masterful at controlling your thoughts. When you're able to organize your thoughts in a manner which will allow you to communicate ideas to your audience in an effective way, then this is a sign that you're an effective writer.

The ability to write and communicate with the written word is a timeless skill that is just as valid today as it always has been, and if you are able to write persuasive books, papers, and articles, you will find yourself developing a following within a short period of time.

In addition to public speaking and writing, the ability to manage yourself is absolutely critical.

The ability to manage yourself

Many people are failures in life simply because of an inability to manage themselves. The hallmark of self management is to have lots of self discipline.

If you have a problem waking up on time, or doing what you know you need to be doing when you should be doing it, then your success in life is doubtful.

Another life skill which is indispensable is an ability to work with and recognize authority. No matter how high you rise in life, there will always be someone you answer to. If you're the type of person who has a problem with authority, you're not going to go very far.

As I always like to say: someone is going to tell you what to do, one way or another. It could be your boss or client, or it could be a prison guard, but someone is going to tell you what to do.

Individuals who are argumentative, or who always think their way is the right way, are people who won't go far, because they will make so many enemies and burn so many bridges that no one will want to deal with them.

Even when your client or boss is wrong, and you know they are, it is better to let them find out for themselves as opposed to arguing with them about it. Arguing with others is never a sign of power, and is in fact a sign of weakness.

As the old saying does, "the truth is seen, rarely heard." Talk is cheap, people talk about doing things all the time. To become successful in life, you have to be a man or woman or action, not words. In the long run, actions are the only things that really count.

The Power of Networking

Networking is one of the most powerful tools that you can have at your disposal. No matter how smart or talented you are, if you're incapable of networking with others, you will not go very far. The most successful people in the world are those who know how to build a network. The purpose of building a network is to use the energy and resources of others as opposed to using your own.

Your energy and resources are very finite, it is easy to exhaust and wipe yourself out. However, by working together with a team, you suddenly partition your work load and can complete various tasks within a short period of time.