5 Reasons People Struggle with their Finances (4 of 5)

4) Not understanding money principles and terminology

If you decided your goal is to sail around the world yet knew very little about sailing how successful do you think you would be? This seems like a no brainer question, right? Yet how many people are walking around playing the money game without a clue about the rules of engagement, other than an amorphous goal of a desire for more? If sailing around the world was your goal I’m fairly certain you would dive deep into learning the many aspects of sailing, boat maintenance & repair, navigational systems, etc. Like a fish in water, money is an integral part of our environment and we’ve acquired our concepts and beliefs mostly through absorption and figuring it out on our own. An understanding of basic financial concepts and terms will allow you to successfully improve and manage your finances without struggle, stress and anxiety.

… and what to do about it:

Understand the language of money. Develop a basic understanding of financial reports, specifically the Cash Flow and Balance Sheet. Understanding financial terms and reporting will greatly assist you in reaching your financial goals by helping you to make informed and empowered financial decisions.