August 7, 2024 • 16 mins
Welcome to our comprehensive introduction to money management! This episode identifies eight key steps to gain basic financial knowledge. We will navigate through seven detailed learning modules, concluding with an engaging game designed to solidify your understanding.
Learn from a certified accountant with over two decades of experience, who shares insights on the psychology of money, the impact of emotional decisions, and practical tips to avoid common financial pitfalls. Discover how to effectively plan, budget, control, and track your cash flow.
Understand the nuances of managing debt, leveraging savings, and making sound investments. Explore the importance of asset protection and how to safeguard your financial growth. This episode is packed with actionable advice and tools to help you start your journey towards financial literacy and wealth creation.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Music.
(01:16):
So this is an introduction. I've identified eight key steps to having the basic
knowledge of money management.
We will go through each of these.
There are essentially seven learning modules with the eighth step being a game
you are encouraged to play.
As the saying goes, action does bring clarity.
(01:37):
The more you play, the more you master the game of money management.
Why did I create this course? I'm a certified accountant with over two decades
of money management training.
But even with this, I've made some mistakes in my financial decisions over the years.
And you may wonder why, after all, I've had the training to know better.
(01:59):
Well, as you will learn on this financial literacy journey, there is a psychology to money.
And because of that, we often make money decisions based on emotions rather than logic.
The full story of the errors I've made is shared in the wealth building course, the detailed course.
But the important thing to know for this class is that I resolved to learn from my mistakes.
(02:25):
Over the years, my passion for wealth creation and investments persisted,
driven by a belief that financial growth is attainable for everyone.
One, regardless of starting point, I embarked on a journey to educate and guide others as well.
Recognizing the transformative power of sound investment strategies,
(02:47):
I established several successful businesses.
Today, I empower younger mothers and businesses alike to navigate the complexities
of money management through teaching of financial literacy.
The lessons in this class are kind of like the note I made to my younger self.
Think of it like a younger mommy version of me. I realized that my kids have
(03:12):
grown quite quickly and that's how money grows quite quickly too.
But it requires knowledge and consistency.
Now, without further ado, together, let's navigate the nuances of money management
and how you can start growing yours from where you are. Now, personal finance.
(03:34):
What is personal finance? I see it as methods and ways that you can raise money
and use them for your advantage while considering risk that may be applicable to you. For example.
A to-be mom may want to consider how cash will be available for their needs,
(03:56):
for the needs of their unborn child, and any family member they are responsible for.
Now, that to-be mom will go further to check how they will distribute the cash
that may be available or how they may not want to distribute it.
That personal finance is tailored to your circumstances.
(04:17):
It involves decision-making on how much cash you can make, how much cash you
can put on savings, investments,
financing for the survivor and growth of you and your family members.
All this, you can see them as personal finance.
(04:40):
Cash. There's no way we look at financial literacy without looking at cash.
With, you know, it's all part of everyday life.
One note I made to myself is this, never, never lose money.
After this, I say this is the first rule. And then my second rule is I remember this first rule.
(05:00):
Now, I made this note to myself again after making some mistakes in the past
that resulted in my loss of money.
You can't aim not to lose money. You know, I find myself, So when I remind myself
of this, I find it very helpful.
For example, anytime I'm considering a decision, I ask myself,
with this decision, will it result in me losing money?
(05:24):
And that informs my decision.
However, I also like to say that this is where the concept of diversification comes to be useful.
At some point on this financial literacy journey of yours, I haven't gained
some mastery and maturity. charity, you may want to ensure that you put your
(05:44):
money in different money-making streams. Why?
So that if one stream does not work, at least you have another stream or other
streams to fall back on. I'm going to leave it there for now.
Now, noting not to lose money, you set how you want to distribute your cash
in line with your personal goals.
For example, if you plan celebrating your, let's say, your child's 10th year
(06:09):
birthday, then you can first determine what is attainable with your incoming cash.
And that is planning, determining what is achievable.
You say that you are planning your cash. Now, after having defined what is achievable,
you want to allocate part of your incoming money to what you have identified.
(06:31):
For example, let's look at our example of the 10th year birthday of your child.
You've said, OK, it's achievable. I think I'm going to be able to do this.
Then you want to allocate a part of your cash that is coming or that you have
towards that birthday that is budgeting.
I find myself not good at sitting down nickel-diming with Excel,
(06:54):
and I've tried it several times. It just doesn't work.
So what I find helpful, however, is automated budget applications.
For example, there's a fantastic template by the government of Canada.
You can give it a go. You can just type budgetplannercanada.ca in Google,
and you should be able to find it. If you're having trouble finding it,
you can get in touch with me and I'll get you a copy.
(07:18):
It's free to download. The controlling part of your cash. Now,
we've talked about planning, budgeting. We're moving to the controlling part.
I find automation also useful here. As much as you can, you want to automate
your cash distribution.
For example, if you know you'll be putting, say, $20 away in savings accounts
each month, then you want to check with your bank on setting that up without
(07:41):
any action required from you month on month.
It also includes activities that help you to keep up with your mandatory responsibilities.
For example, your personal tax filing at the end of the year.
By keeping up with it, by setting up automated reminders, you are controlling
activities that has to do with your So that is controlling.
(08:05):
Lastly here, I would like to mention tracking and tracking is a bit different.
You know, life happens and you should adapt as life happens.
This means you should be open to adjust your cash planning, your cash generally
in line with how life is moving, how, you know, the moving paths in your life.
(08:27):
Let's talk about debt now.
You know, some people have told me, well, they really would do anything not to hold anybody money.
First of all, debt is money you hold, money you hold people or money you hold a party. Now.
I don't have, like I said, money is very, very emotional and there's a psychology to it.
(08:54):
If you would rather do away or you don't like debt, I understand the sentiments.
However, my experience is that you can use debt to your advantage. How?
With the right financial education, you can know where to take debt that will
maximize returns to you and your family. An example is mortgage.
(09:17):
If that is in line with your financial goals, the key thing to be aware of is
you want to take money that you can safely return and that you can safely,
you know, you can act consistently to reduce the debt over time.
Any money that you take to use as a leverage, you want to be sure,
(09:38):
you want to make sure that you can consistently reduce it over time.
But be careful here. I've made a note to myself, debt can be heavy to carry.
So I make sure I can roll my debt along my journey, just like a four-wheel travel bag.
If you look at this gentleman in our picture here, it looks as if he's struggling
(10:02):
to carry that load on his back.
And you don't want to struggle like that.
You want to make sure, that's why I talk about the money you can safely take,
that you can safely return consistently
over time because you want to make sure that the debts you hold,
think about it like you have a, you know, imagine a four-wheel travel bag and a two-wheel travel bag.
(10:26):
You know, on a journey, who do you think will have a better trip,
like easier to maneuver the travel bag?
I bet it's going to be the four-wheel travel bag person.
So that's the way you want to look at debt. You want to be able to move it,
you know, very swiftly along on your financial management journey.
(10:48):
Savings and investments. Now, if you go online, there are many rules of what
percentage you should be saving from the cash that is coming to you.
And that's all good. Even financial institutions have some expectations and
guidance for you as well.
But the value I hope you get from this class is practical metals that you can
explore that may work for you.
I've identified that it's easier for me to determine a convenient amount I want
(11:13):
to set aside without any judgment for myself.
Only me know that amount. That will not result in any kind of judgment.
I will still be able to live my life the way I want to live it,
you know, in a very responsible manner.
But I start with the amount I want to save and whatever the amount I determine
that I want to save, I make sure I can double that for my investment.
(11:34):
That's what has worked for me. And I find that that's maybe really,
really practical and maybe useful.
I've made a note to myself that savings is money I call nest liquid cash,
accessible to me immediately should I need it without having to worry about
incoming money for like, say, 12 months.
And don't worry if you haven't started anything. Just start now with any amount, wherever you are.
(11:59):
Believe me, your money will serve you if you leave it alone.
And don't bother about the returns on savings. The goal is not to lose money
and for it to be available as needed as opposed to growing your savings count.
By contrast, your money for investment, you do want to grow that one.
You want to grow it over a relatively long period of time.
(12:21):
There's this book by Rami Seti that I find very helpful. I will teach you to be rich.
There you'll find reasonable, actionable steps you can take to start investing from where you are.
I don't have any affiliation with the hotel. It's just a book I find very helpful.
One key action that is helping me with investing is automation.
(12:42):
Information after having decided where you
want to invest your money why don't you go ahead and automate it it just makes
it very feasible for you to do very practical for you to do so now looking at
this image what comes to your mind do you see you know like a treasure box.
(13:03):
And where do you think people keep this kind of box whatever your answer is
i want to believe it's not in a public place, right?
Now, that's the same way I wanted to look at wealth. It is Eden.
So when you think of creating wealth for yourself, always remember it's not sin.
(13:29):
That alone should remove the urge to want to impress people and should encourage
you to safely Safely keep your money away and allow it to compound for you.
Your assets are what you've used your money to acquire. Anytime I teach financial
literacy, I always like to include asset protection.
(13:50):
Because your assets are what you've used your money to acquire.
And these items should have the power to create more money for you.
Now, having used your money to acquire things, you can't leave them alone.
You want to ring fence them. You want to make sure they are protected.
And that's why I include it in my financial literacy teachings.
Now, this asset, whatever you want to use your money to acquire so that you
(14:16):
can create more money for you, it's personal to you.
You know, for example, a family member you are responsible for may be your assets. Why?
They can have the power to create what money can buy for you.
For example, money can give you contentment. Now, after having spent your earnings
on your child's education, that can give you contentment and therefore you do
(14:38):
want to protect your child.
Now, I know that that may sound unconventional to some people,
but that's the whole point of money literacy.
It involves emotions, like I said, and it's largely dependent on complex sentiments.
The important thing is to be aware of the implications of your decisions and
(14:59):
to be happy with those decisions.
Now, we've talked about seven steps. The eighth step is a game.
It's your turn to take some action. The game is like a quiz. It's very quick.
It's on my website, OlaWilliams.ca. It's a very quick game.
I encourage you to go there and take action.
(15:22):
You know, like the saying goes, action does bring clarity.
So you want to make sure you just engage in this. And I do hope you enjoy playing it.
Remember, you absolutely can start where you are. And you can build wealth by
being financially literate.
I've included a personal finance article as a bonus to this introductory class.
(15:45):
It contains useful information on smart ways that you can manage your personal
finance, you know, where you can get tools on personal finance.
I'm always open to connections and you can reach me at connect at OlaWilliams.ca.
If you do like to continue your learning with me, you should click on the next
learning link available in this video. you.
(16:08):
Remember, let's continue to learn together and be encouraged to keep on connecting.
Thanks very much for your time. I really do hope that this class has been useful for you.
Music.
Music.
(01:16):
So this is an introduction. I've identified eight key steps to having the basic
knowledge of money management.
We will go through each of these.
There are essentially seven learning modules with the eighth step being a game
you are encouraged to play.
As the saying goes, action does bring clarity.
(01:37):
The more you play, the more you master the game of money management.
Why did I create this course? I'm a certified accountant with over two decades
of money management training.
But even with this, I've made some mistakes in my financial decisions over the years.
And you may wonder why, after all, I've had the training to know better.
(01:59):
Well, as you will learn on this financial literacy journey, there is a psychology to money.
And because of that, we often make money decisions based on emotions rather than logic.
The full story of the errors I've made is shared in the wealth building course, the detailed course.
But the important thing to know for this class is that I resolved to learn from my mistakes.
(02:25):
Over the years, my passion for wealth creation and investments persisted,
driven by a belief that financial growth is attainable for everyone.
One, regardless of starting point, I embarked on a journey to educate and guide others as well.
Recognizing the transformative power of sound investment strategies,
(02:47):
I established several successful businesses.
Today, I empower younger mothers and businesses alike to navigate the complexities
of money management through teaching of financial literacy.
The lessons in this class are kind of like the note I made to my younger self.
Think of it like a younger mommy version of me. I realized that my kids have
(03:12):
grown quite quickly and that's how money grows quite quickly too.
But it requires knowledge and consistency.
Now, without further ado, together, let's navigate the nuances of money management
and how you can start growing yours from where you are. Now, personal finance.
(03:34):
What is personal finance? I see it as methods and ways that you can raise money
and use them for your advantage while considering risk that may be applicable to you. For example.
A to-be mom may want to consider how cash will be available for their needs,
(03:56):
for the needs of their unborn child, and any family member they are responsible for.
Now, that to-be mom will go further to check how they will distribute the cash
that may be available or how they may not want to distribute it.
That personal finance is tailored to your circumstances.
(04:17):
It involves decision-making on how much cash you can make, how much cash you
can put on savings, investments,
financing for the survivor and growth of you and your family members.
All this, you can see them as personal finance.
(04:40):
Cash. There's no way we look at financial literacy without looking at cash.
With, you know, it's all part of everyday life.
One note I made to myself is this, never, never lose money.
After this, I say this is the first rule. And then my second rule is I remember this first rule.
(05:00):
Now, I made this note to myself again after making some mistakes in the past
that resulted in my loss of money.
You can't aim not to lose money. You know, I find myself, So when I remind myself
of this, I find it very helpful.
For example, anytime I'm considering a decision, I ask myself,
with this decision, will it result in me losing money?
(05:24):
And that informs my decision.
However, I also like to say that this is where the concept of diversification comes to be useful.
At some point on this financial literacy journey of yours, I haven't gained
some mastery and maturity. charity, you may want to ensure that you put your
(05:44):
money in different money-making streams. Why?
So that if one stream does not work, at least you have another stream or other
streams to fall back on. I'm going to leave it there for now.
Now, noting not to lose money, you set how you want to distribute your cash
in line with your personal goals.
For example, if you plan celebrating your, let's say, your child's 10th year
(06:09):
birthday, then you can first determine what is attainable with your incoming cash.
And that is planning, determining what is achievable.
You say that you are planning your cash. Now, after having defined what is achievable,
you want to allocate part of your incoming money to what you have identified.
(06:31):
For example, let's look at our example of the 10th year birthday of your child.
You've said, OK, it's achievable. I think I'm going to be able to do this.
Then you want to allocate a part of your cash that is coming or that you have
towards that birthday that is budgeting.
I find myself not good at sitting down nickel-diming with Excel,
(06:54):
and I've tried it several times. It just doesn't work.
So what I find helpful, however, is automated budget applications.
For example, there's a fantastic template by the government of Canada.
You can give it a go. You can just type budgetplannercanada.ca in Google,
and you should be able to find it. If you're having trouble finding it,
you can get in touch with me and I'll get you a copy.
(07:18):
It's free to download. The controlling part of your cash. Now,
we've talked about planning, budgeting. We're moving to the controlling part.
I find automation also useful here. As much as you can, you want to automate
your cash distribution.
For example, if you know you'll be putting, say, $20 away in savings accounts
each month, then you want to check with your bank on setting that up without
(07:41):
any action required from you month on month.
It also includes activities that help you to keep up with your mandatory responsibilities.
For example, your personal tax filing at the end of the year.
By keeping up with it, by setting up automated reminders, you are controlling
activities that has to do with your So that is controlling.
(08:05):
Lastly here, I would like to mention tracking and tracking is a bit different.
You know, life happens and you should adapt as life happens.
This means you should be open to adjust your cash planning, your cash generally
in line with how life is moving, how, you know, the moving paths in your life.
(08:27):
Let's talk about debt now.
You know, some people have told me, well, they really would do anything not to hold anybody money.
First of all, debt is money you hold, money you hold people or money you hold a party. Now.
I don't have, like I said, money is very, very emotional and there's a psychology to it.
(08:54):
If you would rather do away or you don't like debt, I understand the sentiments.
However, my experience is that you can use debt to your advantage. How?
With the right financial education, you can know where to take debt that will
maximize returns to you and your family. An example is mortgage.
(09:17):
If that is in line with your financial goals, the key thing to be aware of is
you want to take money that you can safely return and that you can safely,
you know, you can act consistently to reduce the debt over time.
Any money that you take to use as a leverage, you want to be sure,
(09:38):
you want to make sure that you can consistently reduce it over time.
But be careful here. I've made a note to myself, debt can be heavy to carry.
So I make sure I can roll my debt along my journey, just like a four-wheel travel bag.
If you look at this gentleman in our picture here, it looks as if he's struggling
(10:02):
to carry that load on his back.
And you don't want to struggle like that.
You want to make sure, that's why I talk about the money you can safely take,
that you can safely return consistently
over time because you want to make sure that the debts you hold,
think about it like you have a, you know, imagine a four-wheel travel bag and a two-wheel travel bag.
(10:26):
You know, on a journey, who do you think will have a better trip,
like easier to maneuver the travel bag?
I bet it's going to be the four-wheel travel bag person.
So that's the way you want to look at debt. You want to be able to move it,
you know, very swiftly along on your financial management journey.
(10:48):
Savings and investments. Now, if you go online, there are many rules of what
percentage you should be saving from the cash that is coming to you.
And that's all good. Even financial institutions have some expectations and
guidance for you as well.
But the value I hope you get from this class is practical metals that you can
explore that may work for you.
I've identified that it's easier for me to determine a convenient amount I want
(11:13):
to set aside without any judgment for myself.
Only me know that amount. That will not result in any kind of judgment.
I will still be able to live my life the way I want to live it,
you know, in a very responsible manner.
But I start with the amount I want to save and whatever the amount I determine
that I want to save, I make sure I can double that for my investment.
(11:34):
That's what has worked for me. And I find that that's maybe really,
really practical and maybe useful.
I've made a note to myself that savings is money I call nest liquid cash,
accessible to me immediately should I need it without having to worry about
incoming money for like, say, 12 months.
And don't worry if you haven't started anything. Just start now with any amount, wherever you are.
(11:59):
Believe me, your money will serve you if you leave it alone.
And don't bother about the returns on savings. The goal is not to lose money
and for it to be available as needed as opposed to growing your savings count.
By contrast, your money for investment, you do want to grow that one.
You want to grow it over a relatively long period of time.
(12:21):
There's this book by Rami Seti that I find very helpful. I will teach you to be rich.
There you'll find reasonable, actionable steps you can take to start investing from where you are.
I don't have any affiliation with the hotel. It's just a book I find very helpful.
One key action that is helping me with investing is automation.
(12:42):
Information after having decided where you
want to invest your money why don't you go ahead and automate it it just makes
it very feasible for you to do very practical for you to do so now looking at
this image what comes to your mind do you see you know like a treasure box.
(13:03):
And where do you think people keep this kind of box whatever your answer is
i want to believe it's not in a public place, right?
Now, that's the same way I wanted to look at wealth. It is Eden.
So when you think of creating wealth for yourself, always remember it's not sin.
(13:29):
That alone should remove the urge to want to impress people and should encourage
you to safely Safely keep your money away and allow it to compound for you.
Your assets are what you've used your money to acquire. Anytime I teach financial
literacy, I always like to include asset protection.
(13:50):
Because your assets are what you've used your money to acquire.
And these items should have the power to create more money for you.
Now, having used your money to acquire things, you can't leave them alone.
You want to ring fence them. You want to make sure they are protected.
And that's why I include it in my financial literacy teachings.
Now, this asset, whatever you want to use your money to acquire so that you
(14:16):
can create more money for you, it's personal to you.
You know, for example, a family member you are responsible for may be your assets. Why?
They can have the power to create what money can buy for you.
For example, money can give you contentment. Now, after having spent your earnings
on your child's education, that can give you contentment and therefore you do
(14:38):
want to protect your child.
Now, I know that that may sound unconventional to some people,
but that's the whole point of money literacy.
It involves emotions, like I said, and it's largely dependent on complex sentiments.
The important thing is to be aware of the implications of your decisions and
(14:59):
to be happy with those decisions.
Now, we've talked about seven steps. The eighth step is a game.
It's your turn to take some action. The game is like a quiz. It's very quick.
It's on my website, OlaWilliams.ca. It's a very quick game.
I encourage you to go there and take action.
(15:22):
You know, like the saying goes, action does bring clarity.
So you want to make sure you just engage in this. And I do hope you enjoy playing it.
Remember, you absolutely can start where you are. And you can build wealth by
being financially literate.
I've included a personal finance article as a bonus to this introductory class.
(15:45):
It contains useful information on smart ways that you can manage your personal
finance, you know, where you can get tools on personal finance.
I'm always open to connections and you can reach me at connect at OlaWilliams.ca.
If you do like to continue your learning with me, you should click on the next
learning link available in this video. you.
(16:08):
Remember, let's continue to learn together and be encouraged to keep on connecting.
Thanks very much for your time. I really do hope that this class has been useful for you.
Music.
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