Continuing on with the Business Life series beginning with this post, the next step in the strategic process for most companies is to gain an understanding of the internal and external environment in which they are operating. This involves analyzing factors within their environment that may impact their success in reaching their long-term vision. If a business doesn’t know what it does well it may lose sight of this and fail to meet its customers’ expectations, and if it doesn’t know what it fails at it will never know how to improve. If a business doesn’t know what opportunities or threats there are, it will never take advantage of the opportunities or prepare for the threats. Understanding all of these factors of the environment in which they operate are crucial for any business to succeed long-term. [Read more…] about Business Life Part II: Time to Scan
As I’ve mentioned in a prior post, one of the biggest failures of the education system is the complete inadequacy of preparing youngsters on how to manage money effectively. I came through the UK education system, where personal finance wasn’t a mandatory subject, nor was it even bloody optional for those that wanted to pursue it. The closest you could get to learning anything regarding how to manage money was an optional business or economics course, which most didn’t pursue and doesn’t really scratch the surface of personal finance anyway. But at least it drills home the importance of how to manage money effectively.
If learning about personal finances isn’t even an option during education, most people never actually appreciate the importance of it, how it can affect their life in dramatic ways and the significance of starting early when it comes to getting your finances in order. Young adults are hurled out of education into the real world, with the ability to take on insane amounts of debt at the drop of a hat, without actually realizing the drastic implications this could have on them long-term.
If you’re lucky, you might realize some of the important concepts of how to manage money early on through common sense thinking like “debt is bad”, “saving for home ownership is good” and so on. Even then, these are typically very narrow-minded views, as often debt is good and buying a house is a terrible idea.
So where do people actually learn how to manage money if it isn’t through the education system? I think I’ve got a few ideas, and I firmly believe this is the primary reason topics like financial independence are never at the forefront of the majority of society’s mind. [Read more…] about Where Did You Learn To Manage Money?
If you haven’t gathered yet, this blog is going to predominantly be about financial freedom and early retirement. What is this specifically? Well, it all boils down to having enough money saved and invested to provide an annual inflow of cash that covers your day-to-day living expenses. For example, if you added up all your annual living expenses and figured it was $50,000 per year, and you had an investment portfolio providing an after tax cash flow of $50,000 per year, you have reached financial freedom, can quit your job forever and do whatever the hell you want.
Some readers by now might be thinking…
I don’t care about money or early retirement, in fact, I actually LOVE my job and wouldn’t quit with all the money in the world!
Well, congratulations! A quick google search tells me you’re in the minority, with only 13% of people actually enjoying their job. That tells me the remaining 87% of people would more than likely give the middle finger salute to working if they were given the opportunity. That’s a big chunk of society. [Read more…] about 11 Reasons Why You Should Pursue Financial Independence, Even If You Love Working
If there’s one thing I know a lot of stuff about, it business and money. My entire education and work-life have revolved around these areas so I’ve lived and breathed this for some time. What’s one thing I keep seeing time and again? How businesses are pretty much living, breathing organisms that face the same bloody problems we all face in our day-to-day lives. The businesses that succeed are usually the ones that have a vision and all of their decisions revolve around reaching it. Those that fail are usually the ones that blindly walk into the abyss, cross their fingers and hope for the best. Much like most of society when it comes to managing their own money, I might add.
Since businesses are a lot like humans, I’ve decided to start a series titled “Business Life”. It’s going to run through core business/financial concepts that can apply to both business and financial independence. I honestly think if more people took the time to run their life like they did a successful business, they would probably find themselves in much better shape financially.