Personal Finance & Credit Masterclass For Beginners
In this personal finance and credit masterclass, you're going to learn how personal finance works and how to build and maintain top-tier credit status so you can reach your financial goals!
This course is for complete beginners where you're going to learn tips, techniques, and methods to build and maintain top-tier personal credit status.
Even if you already have some knowledge, or want to learn about the advanced tips and techniques for building a top-tier credit profile, this course is for you!
In this class you’ll learn:
How to build a top-tier credit profile
How to create a budget
How to analyze your credit profile
Understand the different types of loans
Learn the differences between good debt vs bad debt
Learn the differences between assets vs liabilities
Learn how to keep track of your finances
Learn how your credit score is calculated
Learn the power of compound interest
All of this and much more!
No matter what the scenario or how complicated you may think personal finance and credit is, this class gives you the foundational training you need to become proficient with personal finance and personal credit – and start achieving your personal financial goals!
Here are 7 rules live by for your personal finances:
1. Avoid credit card debt that is spent on liabilities
Credit card borrowing rates are egregiously high and paying those rates is an easy way to negatively compound your net worth. If you carry credit card debt for a prolonged period of time, you’re not ready to invest your money in the markets. Make sure if you are carrying a balance, you're buying assets.
2. Building credit is important
Likely the biggest expense over your lifetime will be interest costs on your mortgage, car loans and student loans. Having a solid credit score can save you tens or even hundreds of thousands of dollars by lowering your borrowing costs.
3. Income is not the same as savings
There is a huge difference between making a lot of money and becoming wealthy because your net worth is more important than how much money you make. Having a high income does not automatically make you rich; having a low income does not automatically make you poor. All that matters is how much of your income you set aside, not how much you spend.
4. Saving is more important than investing
Pay yourself first is such simple advice, but so few people do this. The best investment decision you can make is setting a high savings rate because it gives you a huge margin of safety in life. You have no control over the level of interest rates, stock market performance or the timing of recessions and bear markets but you can control your savings rate.
5. Live below your means, not within your means
Living within or above your means is how you end up going from paycheck to paycheck without every truly building wealth. The only way to get ahead is by living below your means and setting aside a portion of your income for the future.
6. If you want to understand your priorities look at where you spend money each month
You have to understand your spending habits if you ever wish to gain control of your finances. The goal is to spend money on things that are important to you but cut back everywhere else. And if you pay yourself first you don’t have to worry about budgeting, you just spend whatever’s leftover on the things that truly matter to you.
7. Automate everything
The best way to save more, avoid late fees, and make your life easier is to automate as much of your financial life as possible. The goal is to make the big decisions up front so you don’t need to waste so much time and energy tending to your finances.
