I am a big advocate of well-being and working for yourself. In my view well-being includes financial well-being, too! Being a professional musician money and finances were never my greatest focus in life. Money was always a 'byproduct' of my success in my music career and in my business activities. I still believe and teach that when you do what you love and passionate about, money will follow.

There was a short period in my life when I followed money, which in my case was to accept the better offer. Soon I realized that those positions did not make me happy and had other disadvantages like location and lifestyle. Quickly I realized this mistake and never again I made choices based on money.

In my thirty years of involvement in the education system, I never stopped being amazed the useless things we teach to our students and how little we prepare them for a successful and happy life!

These, in my view, are nutrition, finances, kindness, self-fulfillment and exercise for life.

In this article I would like to talk about personal finances. My advice is based on my own mistakes and bad choices that I had to rectify. Every time I had to restart and re-build my finances, I did it faster because of the lessons I learned.

From a young age I enjoyed making money and had some clever business ideas that helped me to generate extra income. Now, looking back, I should have gotten into one of these businesses seriously and for life. However, my call to tour the world as a teacher and performing musician was much stronger. I made the right decision for my personal happiness. Maybe not for my finances! I am much more business minded now and use those early experiences to make better decisions.

This is my advice for anyone who wants to enjoy good personal finances long term.

Maximize your earning potentials

Earn as much as you can in a happy, satisfying job or enterprise. You might need to get better education or do some serious self-education on the topic of your interest. Self-education pays big dividends long term and no person, who wants to succeed can avoid doing it!

Save

As soon as you get your first pay or profit, get into the habit of savings. No excuses. Savings should be like brushing your teeth. Don't think about it just do it. A certain part of all you earn is yours to keep. I would recommend to save at least 10% of your earnings.

Simple maths

You only can get into debt if you earn less than you spend or spend more than you earn. Simple. Don't be foolish. Keep cutting back on your expenditure until it is lower than 9/10 of your earning. Make a list of them, think it through what can go and what can be cut back. Master this important task and keep monitoring these figures. As soon as subscriptions, contracts run out, replace them with cheaper ones or don't renew them. Refine your spending.

Want or need

Every time you want to buy something, think it through. Do you really need it or just want it? Introduce a system for smaller items like clothing, shoes and bags, etc when you buy a new item, an old one has to go.

Budget

Budgeting is hard. Most people who have financial difficulties are scared of budgeting and don't know their numbers. Mostly, they don't want to face the problems and overwhelmed by them. They don't know where to start. If you can't do it yourself, ask a trusted friend to sit down with you or ask for professional help. The moment you get organized with your budget, you will see the end of the tunnel! A huge weight will lift from your shoulders.

Passive income

Get familiar with the idea of passive income. Passive income is a regular income that requires little effort to maintain it. Sit down and think through what are YOUR potentials to earn passive income for life. If you are not the creative type, a composer, songwriter, film producer, writer or someone who gets royalties, get your head around 'pyramid' business. A lot of people still just don't get it that affiliate businesses and MLM (Multi Level Marketing) is here to stay and has taken over the world. It is the best kept secret of the world. Millions are achieving financial independence while those, who are closed minded, are still asking if it is 'pyramid' instead of getting started part-time around their jobs. This is how I got started with my businesses that three years later freed me from the slavery of full-time employment, gave back my freedom, my time, released my creativity and supported my desired lifestyle.

Diversify

Disaster, financial crisis, bad luck can hit anyone anytime. Make sure that if you chose to invest, don't put all your eggs in one basket. Diversify. Educate yourself. Learn and get proper information on everything you want to do. Using others, experts, to manage your investment is great but if you are involved when disaster hits at least you only can blame yourself, not someone else and you have more control over the situation.

Keep your principle safe

When you invest, make sure that your principle is safe. Never compromise that.

Own your home

For a lot of people their home is their bigger investment that is still owned by the banks. As soon as you can become debt free, own your home. Debt free home allows you to breathe freely and to get on with other investment options.

Planning for the future

While retirement might not on your minf, make sure that you make regular Superannuation contributions. Secure your and your family's future. Pay out any debt as soon as you can. What is even better, don't get into any debt. Use Debit Cards and only shop when you have the money to pay for it. This sounds really strange in our credit-run world!

Take care of your loved ones just in case something happens to you. And finally, make a will. Don't leave this world with a mess behind you.

Give to Get

Be appreciative and grateful. Many times we forget how fortunate we are and how many millions of people around the world have less fortunate circumstances. Give to the less fortunate ones. Give and get involved. Teach this to your children, too.

Money is just a piece of paper

Just remember, money is only a piece of paper. It has its own energy, the energy that WE give to it! Control your feelings and attachments to money and the behaviur of money will change accordingly. Don't let it rule your life. The more you detach yourself from money, the more it looses its power over you.

Be Happy

Be happy that you woke up in the morning and you are alive. If you have problems that means you still breathe and alive. Problems are there for you to solve, to learn to get better and to get ahead. See problems, even financial problems as an opportunity!

If you are well off financially and you are doing well with money and investment, congratulate yourself then teach others how to do the same!

Cheers, Piroska