Thanks to financial advisor for bringing the following
blog post
Sex appeal! That's how I, as a gray haired gentleman, relate to a group of 18-30 year olds when, as a Money Coach, I give a presentation on “Personal Budgeting.” No, I'm not the sex symbol – I convince these youngsters that they have sex appeal only if they show off their financial smarts to the opposite sex.
In many societies being a “senior” brings knowledge and respect from the younger generations. Not so in our society. My adult children generally react with an “Oh, Dad” when I give financial advice. I realize the idea of encouraging savings for the future won't work, because I remember when I was that tender age, I did no planning for the years past 30. I don't show a picture of my house and my car, both “paid for” since I might get an “Oh, just like my Dad.” To get their attention what works is sex appeal. Having a great looking spouse – wonderful. Have a great looking spouse with financial smarts – priceless.
To drive home the significance of financial smarts, I ask who knows how much he or she paid for their last tank of gas. Some do, most don't. (Important Point: It is a good thing to know how much you pay for stuff.) I tell them I last paid $2.38 a gallon. Then I ask who would date/who would marry someone who pays $9 a gallon for gas. This is the price you pay if you use a credit card at 20% and make minimum payments over six years.
I talk about “Putting Together a Spending Plan.” (Important Point: I emphasize that it's not how much you make, it's how much you spend.) I don't concentrate on money in, I look at money out. You do the best you can to earn as much as you can based on your education and your attitude. You don't have full control over how much you earn. You do have absolute control over how much you spend. Don't call it a “budget,” call it a “spending plan.” A spending plan is used to help you spend money the way you want to, not to restrict you. A spending plan is a guideline, not a rigid, dictatorial directive. All of us have spent too much at one time or other. Spending is perhaps our biggest problem. Who has to take responsibility for fixing this problem? Not me, I am only a coach. It rests with each individual. There are three parts to a spending plan: estimating income, estimating expenses, and ensuring there are some savings. (Important Point: Your life will be better if your soul mate has a habit of saving some money each payday.)
Happiness is a good looking girl – a good looking girl who follows her budget – priceless.
When talking to young adults about money, I drive home the following points:
One – You and only you are in charge of your financial life. You had better learn enough about money to survive in a world of financial predators.
Two – You must spend less than you make. Two choices if you don't; you either must make more or spend less. Borrowing is not an option.
Three – You must have an emergency fund to take care of unexpected expenses. Three to six months of safe savings to cover bare bones expenses.
Everyone has heard of “street smarts.” If you want to appeal to the opposite sex, you better have “financial smarts.”
You'll find more info on our main site financial advisor
