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Financial Education Should Be As Basic As The 3 Rs

Chances are you are not going to decline finance education because you believe that you already know everything about it. It is much more likely you are ignoring the problem totally, because you know you have no idea of the first thing about it yet it is simply too darn frightful and overwhelming. As folks from many other areas of life, we artists have a tendency to be great excuse-makers when it comes to monetary education. We will be able to come up with some gems that often fall into two different categories:

– The “I’m not ready” category – I haven't got any money, I could start looking at that when I get more financially stable, that kind of stuff is for people that are already earning, I'm too stressed at this time to contemplate the future, I should focus on just making a living…
– The “I don't need that” category – I currently have a good job, I make plenty of money, I already have savings (a plan for retirement, investments, etc.), I haven't got lots of/any debt, I'm not very interested in being rich – I just wish to pursue my art…

So why have we got to be financially educated? Well, above all we need to guarantee financial security and safety for ourselves and our families. While it's right to a degree that cash does not buy happiness, we are living in a society in which we need cash to live. Many of us no longer grow our own food, build our own homes, or make our own clothing. We must have money to buy these things.

There are those among us with the perspective that when we “get that large break” and achieve fiscal success, we’ll simply hire somebody to control our finances for us. Think about this. In these days of information availability, when we are going into a car agency to purchase a auto, don’t we actually have a knowledge of the safety rating of the auto and what the mileage is, not only of the auto we are having a look at, but of the competitors as well? So why would we blindly hand over our entire fiscal existence to someone and just expect that person will work miracles with our money? Why would we trust someone with our gainfully acquired cash and our assets with no awareness of what they may do with the money or what sorts of hazards they may take with it?

No matter who we are, there will always be financial calls on us. This may be even more true of artists. Take actors for example. We have discussed the vital list of costs and actor has: headshots, acting classes, workshops, mail shots, internet sites, reels, etc… Or take the painter: brushes, palettes, canvases, easels, paint, etc… You have got to know how to plan for these expenses so you don’t finish up arching into debt. (Click more information on visit debt cycle management).

The initial step actually is admitting that there's a problem. We spend a great deal of time and energy pretending. Here in Los Angeles, where I live, everybody feels a pressure to “look good”. We drive nice automobiles, wear expensive clothing, keep on a very cheerful face, and in the mean time many of us are buried under visa cards. Many of us are frightened to just be honest about the incontrovertible fact that things are not perfect and start looking for the data and talents that will help us to enhance our situation.

In today’s society, fiscal education is as basic as learning to read and write. Unfortunately, this is a part of education that youngsters are lacking and as a result many of us grow up without knowing the simplest way to manage our finance lives. We finish up living paycheck-to-paycheck and having dreams about sometime. We can make today someday, or at a minimum ensure that someday shows up next week or the month after next rather than some far distant future of which we won't even conceive. Nevertheless it is up to every one of us to deal with it. Nobody can change our finance futures and well being except us. So take a while to scribble down your excuses and have a look at them for what they are. Then discard them from your consciousness and start on your path to monetary data and steadiness.

Arun Ranganathan is a risk manager for an enterprise capitalist firm he set up on his own with his bros in 1997. Prior to that, Arun works as a risk researcher in a private bank and is married with 3 children whom are in their school years. Now living in Ohio, he plans to make it his permanent home