262 - The First Step toward Financial Health
Episode Title: The First Step toward Financial Health
Like any other skill, being smart with money must be learned. Here’s the first step toward making better financial choices, coming up next on The Perna Syndicate.
Ep 262 show:
Hello and welcome—you are now in The Perna Syndicate! This week we’re talking about a topic we all have in common, and that’s money. Most people can point to a financial decision that they regret—especially young people who have taken out thousands of dollars in student loans. Many borrowers are delaying big purchases and commitments and don’t have the freedom to take career risks, all because of their debt.
I recently connected with Ryan McPherson of SmartPath to talk about the basics of financial health. Of the tips he shared, the first and most fundamental is this: spend less than what you make.
So simple, and yet so profound. Keeping your outflows smaller than your inflows is the basis of any long-term financial success.
Of course, to spend less than what you make, you’ll need to keep track of both numbers. This is more than just opening your online banking and glancing at the number in your checking account. Budgeting software can help you stay on top of your money by forecasting what you’re going to need and when.
Young people need to expand their financial literacy before they make money decisions that they’ll regret. Encourage them to consider all their educational options, not just college—and to view their finances as an area where they can be their own best friend.
Spending less than what we make is the first step toward better financial health, a brighter future, and fewer regrets.
On tomorrow’s show, most young people at the beginning of their careers aren’t really thinking about retirement—but they should be. Tune in tomorrow to The Perna Syndicate for one quick tip on retirement planning. We’ll see you then!