February 25, 2010, 5:00 am

You Need Guts To Handle Your Personal Finance

by: The Financial Blogger    Category: Personal Finance
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According to Wikipedia, courage can be defined as: The quality of a confident character not to be afraid or intimidated easily but without being incautious or inconsiderate. I’d say that being confident about many aspects of your personal finance can bring you to another level. However, one must not let down their guard and remember to continue being cautious, considerate and to remain humble  😉

Be courageous enough to pay off your debt

Paying off your debt ahead of schedule requires other sacrifices. One must be brave enough to live you can afford not the same lifestyle of the Jones (richer or less courageous neighbors)  next door. It is hard to give up the vacation down south for 2 weeks a year instead paying off your debts. However, if you can master your envy and enjoy life, you will be in a much better financial position in a few years!

Be courageous enough to ask for a promotion

I had recently mentioned how I got 3 raises in the span of 12 months and how I positioned myself to get another 2 raises this year. While I did an analogy with poker, I could have also mentioned that it requires guts to ask for raises and promotions during tough economic times. However, if you are not the one who is asking for more, you can be sure that someone else will take his share of the pie (and probably yours at the same time!). Money doesn’t come  simply because you come into the office at 8 am and work hard.  Sometimes, you have to shake the trees to get the fruit!

Be courageous enough to take risk

As the definition of courage mentions, one must be brave and confident enough to do things others don’t without taking stupid risks. During the past 5 years, I have taken my share of risks (I quit my job, borrowed money to invest, borrowed money to buy the house I wanted, borrowed money to start a company, etc). I can basically say that I am where I am because of my tendency to use other people’s money. Being more conservative would have seriously reduced my level of financial stress but I would not be living in a great house and making a 6 figure income today. It is all part of taking risks and calculating the rewards attached to them. I do not always calculate the risks of my actions (I still think that if I have to go bankrupt, I need to do it in my 20s!) but I certainly always calculate the potential rewards attached to the risk I am taking.

Be courageous enough to believe in yourself

This leads me to my final point: believe in yourself; in your abilities, in your talent. We all have great potential in something, we just have to be quick enough to find it and improve our life with it! If you believe you can increase your net worth, get a promotion, pay off your debts or start a company, then do it!

My own definition of courage

In light of this article, being courageous is not only to become confident without being careless. Being courageous means being able to leave one’s comfort zone to face the living chaos of life in order to be able to improve your own life.

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Comments

Nice post. Paying off debt can be difficult, but I agree that if you can pay off debts the sooner you will enjoy life more as there is less of a nasty cloud over one’s head. Taking risks can also sometimes lead to opportunities!

Looove this post 🙂 really well written.

To courage I’d add responsibility. A lot of people would prefer to hand over responsibility for their financial situation to advisers or fund managers. Usually in financial terms the more you hand over anything to someone, the worse it does.

(Handing it over to a computer running an index fund is okay – a computer doesn’t have a beach house and a second wife to keep running! 🙂 )

You are right, it’s always easier to blame somebody else 😉
In fact, I think that most people deal with financial advisors just to blame them 😉