100 essential questions and answers about your personal finance and business. Session 1

This is the first inaugural session of the online personal finance course entitled “100 essential questions and answers about your personal finance and business”.

If you join the course from the beginning you will belong to the first group of people who can take advantage of the fact that we will be meeting live every week – or even more frequently. That means that you can have some influence on the course: you can ask questions, you can share your thoughts, and you can also make suggestions.

I would be really thankful for your comments and your suggestions. It will help me to improve my course in the future, and (even better), relate it to your personal finance expectations. When you are active, when you ask questions and you participate in the course, being aware of what your financial goals are, you will develop new skills much faster! You will achieve more and your results will be better.

Remember that! This is a very important part of our relationship and our deal. My role is to give you the best possible content and your role is to put it into practice.

Please, take into account time parameters in a learning process. Whatever we do, it requires not only effort, but also time. Malcolm Gladwell’s 10 000 hours rule (whether it is a real rule or just an interesting and inspiring concept) says that in order to be a master or expert in what we do, we need to practice for over 10 000 hours. If you spend 3 hours a day on something, it will therefore take you 10 years to achieve a higher level of skills and expertise in your chosen field.

If you want to develop a new habit, it will take you 28 days on average (sometimes, however, it might be even a few months).

When it comes to our course, I believe that you would need a minimum 100 hours within the next year to start achieving your big ambitious personal finance and business goals.

Plus a real commitment and intention to put into practice the knowledge you will learn during the course.

Every session will be delivered in a form of a live webinar (later you will receive a video recording), a digital audio file which will be either a voice version of a video or a separate recording, short texts (200 – 500 words) and other useful documents. I will also recommend to you some very important articles to read, either from our blog or via other resources that will help you better understand specific topics.

You will receive a PowerPoint presentation, which will help you to have a quick orientation at the content of a session.

Each session will answer on average two important and frequently asked questions on finance and business.

Today at our first, inaugural session we will answer three important questions people very often ask about money:

 

Is personal finance difficult?

Can you be successful with your personal money without a financial advisor?

Does money bring happiness?

 

Try to answer these questions on your own as you read or listen to the session.

Our course is divided into 7 chapters. To help you navigate through different aspects of personal finance management, each chapter has a different colour. Today we will have a look at the general picture and recommend you start with the first step in each chapter.

Before we delve very deep into the topic from each chapter, let’s start with what you can do now.

Budgeting and financial planning (7 sessions)

Budgeting is your personal plan of income and spendings at a certain time. The best thing you can do with your budget is to set it up annually and then execute it daily with a weekly and monthly controlling sessions, where you spend 5-15 minutes to go through your budget and make necessary adjustments.

What can you do today?

Start today with your first budget if you haven’t yet done such a thing. This is absolutely essential for personal finance management. If you have a question please let me know. The next session will be devoted to budgeting.

Savings (5 sessions)

Saving skills are less talked about in our modern, spending-driven world. However, saving money is also an essential skill.

What can you do today?

Start today with a savings plan – even if you can only save a few pounds a week, this will build a habit.

Debt management (5 sessions)

If you have debts, please go to the session from my first course entitled How to make your money work for you.

Professional career (3 sessions)

This is for people who prefer to stay in a permanent job (for at least 5 years or more). However it may be also very useful for entrepreneurs and freelancers! One of the few topics we will be discussing is building a personal brand.

What can you do today?

I would like to invite you to write down five ways how a strong personal brand can help you generate more money (whether as an entrepreneur or employee). Do this now!

Earning money (10 sessions)

Do you have one or more sources of income? You should NOT rely on one source of income. This is one of the most important principles of successful personal finance management.

What can you do today?

Today you can conduct your own brainstorming session by writing down all your ideas on how you can multiply the sources of your income. You don’t have to be always “realistic”, in fact it’s best to imagine that you don’t have any limitations!

Investing (10 sessions)

Are you familiar with my personal finance pyramid? Please read this article>>> to get a general orientation about investment issues.

What can you do today?

Write down what would you like to start with. What do you feel you will be successful with? For example:

Real estate

Arts

Startups

Financial instruments

Starting and developing your business (10 sessions)

This is statistically the number one way to achieve financial freedom and independence.

What can you do today?

If you haven’t yet started your own business, please write down a few ideas about what your potential business would look like. What stops you from starting your own business? What do you need to start your business? What can you do first today to be a little bit closer to achieving your business idea?

 

As you can see, money management is a very rational and logical process. In order to be successful in it you need acquire a set of skills. There is nothing mysterious in it. However, the real challenge are the emotions behind money. That’s why is so important to build not only technical skills related to money (like how compound interest works, how to calculate credit, how to compare credit cards or how to choose the best insurance offer, etc); but you also need to develop proper patterns of thinking, planning skills, decision-making skills, and at least basic emotional intelligence skills.

Watch the inaugural session

And now let’s answer today’s questions:

Is personal finance difficult? No. It is relatively easy. However, we don’t have a good enough financial education, so we learn a lot of popular views which are very detrimental (see the answer for the last question)

Can you be successful without a financial advisor? Yes, you can. You can do most of the important financial works alone after you have developed the necessary skills and a general understanding of finance. However, it is beneficial to collaborate with a financial advisor in order to achieve those more complex financial goals.

Does money bring happiness? It is one of those popular and fundamentally wrong questions. Money is not there to bring happiness. Money is there to pay bills or realize your life goals. Money management principles are very rational. You should avoid at all costs these kinds of popular but misguided myths about money. I invite you to write down some more widespread yet irrational beliefs about money. If you want, you can share your ideas on our Facebook group “How to make your money work for you!”

At the end of our first inaugural session, please do one more exercise:

 

The Financial IQ Quiz

 

  1. Which of the following captures the essence of inflation?

price increase,

the cost of living gradually progressive increase

loans interest rates increase,

money loses its value,

the supply of money reduces.

  1. What is the measure of a positive financial condition for you?

I’m getting £10,000 monthly at least,

I live in an impressive style: in order to satisfy my sophisticated needs I spend over £15,000 every month,

If I suddenly lost my income I could live at the same level for at least two years.

  1. If this year inflation reaches 4.3%, and next year it stays at the same level, and your monthly income is £3,000, how much should you earn each month in two years time that your money has the same purchasing power as now?

12.9% more,

£3,898,

£3,263.5,

£3,403.9,

exactly twice as much.

  1. What is the “higher level of poverty”?

The sum of my loans and mortgages including interests is £2.7 m,

I earn £750,000 per annum and I spend almost £900,000,

I don’t have any debt really any. I earn £450 monthly and it has to be enough for living.

  1. Imagine that you take a mortgage out for £200,000, which bears interests 9.9% for 20 years time. How much will your monthly instalment be?

£890,

£1,916.81,

£1,946.81,

£2,004,

any of the proposed answers are incorrect because the monthly instalment is….? Well, how much?

 

I recommend using all materials in each session – video, audio and writing. These are all slightly different in content, but complement each other perfectly.

If you want to order the course please visit this website.

Andrzej Manka

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