Having a successful training gym means you have a comfortable margin of profit after expenses. This means you receive an appropriate take home income for your efforts.
But that’s just the first part of creating long term financial well being.
Once you’re making a decent income, you’ve got to understand the basics of personal finance. Otherwise all those efforts won’t pay off in the long run.
Personal finance can be daunting. This is in part because there’s a whole industry incentivized to confuse you. Next, add in a dash of an emotionally fraught relationship with money. Now you’ve got a great recipe for throwing your hands up in the air.
By applying just a bit of effort to understanding the basics of personal finance, you can apply the 80/20 rule.
To get started, read the following three books:
You’ll find much of the information overlaps. You’ll review similar strategies approached from slightly different angles. And you’ll build a solid base of knowledge to get your financial house in order.
The key thing will be to take action.
It’s really not that complicated. But you do have to apply what you learn.
And money — like health and fitness — has a powerful emotional component that can trip many people up.
Since I’m not a financial professional, you’ll get no specific advice from me on this topic. But this is NOT a topic to stick your head in the sand.
I’m continually amazed how many very intelligent and successful people refuse to learn even the basics of investing because they don’t want to think about it. This usually leads to hiring an advisor. Which sounds like they’re smartly “outsourcing” to an expert.
But even a great advisor with very average fees can cut your retirement nest egg by up to 25%. :-/
Admittedly, as your investable assets grow, there’s a time and a place to work with a professional.
But learn the basics first.
Or you’ll have no way of knowing what help you’re looking for. And this could cost you big.