And so we come out of college into the real world thinking that the solution to our money problems is
Promotion at work
Higher paying job
Staying at home and not paying rent
or simply sharing a flat to reduce expenses.
All of these will no doubt improve your cash flow. But the key to your problems is to
Spend less than you earn.

At School we were not thought about
Credit Reports
Creating Budgets
Avoiding Debt
Simple Money Management Principles

This is the solution to your money problem.
Income must be greater than expenditure or spending.
Many os us are thought to focus on income so we:
Work longer hours
Sign up for overtime
Get a second job
Spend time and money on self improvement so that we can get a higher paying job
the list goes on.
We forget to pay attention to the other side of the equation. Our expenditure or spending.

With a larger income we go for a bigger car, bigger house, expensive night outs, expensive cloths and exotic holidays.
We eventually outspend our increased income and we end up in debt.
Debt is not a good thing.
It shackles you down and forms a cloud over your financial freedom util you get rid of it.

So how do you avoid the debt trap?
any suggestions?

Our purpose today is to explore 5 Keys to Financial freedom

Our purpose today is to explore 5 Keys to Financial freedom

Achieving your financial goals will require
1. Courage to go on despite setbacks.
The journey will not be a smooth one and so you will need to be determined to continue and maintain focus in the face of conflicting demands for your financial resources.

Know the true value of money
We all know what money can buy. and I am sure you also know what money cannot buy.
let me deal with your mindset and talk about 5 common money myths

Know the true value of money
We all know what money can buy. and I am sure you also know what money cannot buy.
let me deal with your mindset and talk about 5 common money myths

Common Money Myths Dispelled
There are many myths out there surrounding money. We all value money – after all, it is the way we maintain our standard of living and purchase the things we want and need. Yet, as is often said, money isn’t everything. Today, we will look at some common myths about money and the truths that underlie them.

#1. More Income Will Prevent Debt

While this sounds on the surface like it could be true, it rarely is. Simply put, when most people experience a significant change in income, they also take on a new standard of living. This could be taking on a mortgage to buy a bigger home, purchasing a more lavish car, or simply taking more vacations. To put it plainly, a larger income won’t prevent debt. The only thing that can do that is to refrain from borrowing money.

#2. I’ll Be Happier If I Just Get More Money

While this is true for people who are living from paycheck to paycheck and struggling just to get the bare necessities, it is not true for people who already have enough for the things they need. Studies show that once a person has everything that they need, more money does not naturally equate to more happiness.

#3. I Will Be Secure If I Have Money

While it is certainly true that money can build you a financial safety net against monetary emergencies such as a lost job, an injury, or other financial woes, money can’t buy true security. It doesn’t mean you can’t get sick or that nothing bad will ever happen to you. Bad things happen to everyone, regardless of income, and all the money in the world can’t change that fact.

#4. Money Isn’t Really Important

While we talk a lot about how money isn’t everything and can’t do everything, the truth of the matter is that money is very important. It puts food on the table, a roof over your head, and gets you to and from work both by paying for your car and the fuel that goes in it. Money will be the key to a successful and comfortable retirement if you do not want to work every day for the rest of your life. If you look at areas of the country or the world with no money, you will see higher rates of hunger, of crime, and of despair. Money is important, even if it is not the only important thing in the world.

#5. Change the Way You See Money

For many young adults, money is just a means of purchasing things. In truth, however, it is the key to wealth creation and to a happy retirement. It is the key to having the money you need in the future to buy your dream home, to take the vacation you have always wanted, and to do the things you’ve always dreamed without having to go into debt to do them. Attitudes around money are mistaken for many young adults, and a healthier approach to the subject could greatly reduce the number of young people in debt.

1. Compound interest working for you - Savings
2. Compound interest working against you - Debt
3. Its never too early to start investing in accounts that earn compound interest.

Since your money is not going to buy you everything, you need to be smart about how you spend it.
Can you come up with 5 smart spending tips?
Lets get some smart spending tips?
1. Always do your grocery shopping with a list.
2. Buy what you needs and keep your expenses in check
3. Spend less than you earn
4. Beware of impulse spending
5. Ask for a discount

Set Financial goals and plans
The numbers are important so take some time to think about it.

Review your goals and plans periodical to keep them relevant

Question? - If financial returns were the same, which would you prefer?
Nine out of ten respondents would prefer to start their own business.
There are many advantages and disadvantages to running your own business.
Can you list some of this?
Pro
1. personal and professional benefits.
2. flexibility to determine your hours, work pace and work environment
3. It also give you the ability to pursue a career based on your interests
4. freedom.
. A 2009 article in USA Today cited research that found that "self-employed businesspersons were four times more likely to be millionaires than those in traditional employer-employee roles."
Cons
1. May need to work longer hours
2. 7 out of 10 fail in the first 2 years. less than a quarter last more than 10 years.
3. You have to wear many hats to be the producer, entrepreneur, accountant and manager.
Read Michael Garbers - Entrepreneurial Myth
But non of it matters if you are unable to control your spending i.e spend less than you earn
What is your way forward.
1. Start the journey to get your finances under control
2. Reduce your financial risk by keeping your day job while starting the business on the side.
3. keep saving and use as much sweat equity as possible.

1. Spreadsheet
2. Apps
3. Money Dashboard

Personal Budget Priorities
The red light represents your number one or high priority spends. The non payment of anything in this category could have an enormous impact on you. Examples here include the Mortgage, rent, council tax, utilities such as gas, electric and water. If you are self employed, payment due to the Inland Revenue such as your personal income tax and vat will also be in this group. If you are ever in doubt as to what spending item to put here, just ask yourself the question, what will happen if I don’t pay this bill? If the answer is ‘ lose the house or eviction, disconnection or a prepayment meter, a visit from the bailiffs or a court case’ this is a high Priority or red budget item.
2. Most drivers do not like the red light and can hardly wait for the orange light to come on. You Orange or medium priority budget items are your other bills and day to day spending. This will include phone bills, day to day travel, clothing, food, drinks and housekeeping. Being medium priority does not make these items unimportant. It just means that they come second to the high priority items. As an illustration, if I spend all my income on food, drinks and travel and have no money to pay my rent, then I stand the risk of being kicked out of my house.
3. My favourite is the green light. This is where you make provision for the big purchases, the gadgets and unforeseen events. The green priority is where we place our religious and charitable giving, holidays, entertainments and savings for the future. For a lot of us, the holidays, weekend outings and charitable giving are very important and rightly so. But if not properly planned for, it can be the source of the weight called debt.

It is the habits that you form through disciplined action that will make things happen for you.

1. Get knowledge
2. Pay Your Bills on time
3. Track all expenses - Review your bank statements regularly
3. Pay your bills on time preferably by DD
4. Conquer Impulse spending - Use a list when shopping
5. Grow your net worth - Put money aside on a regular basis
6 Establish Your Financial Goals
7. All of these help you to spend less than you earn