My Financial Mountain: Understanding Your Path to a Solid Financial Foundation | Julio Lara | Skillshare

My Financial Mountain: Understanding Your Path to a Solid Financial Foundation

Julio Lara, Simple Steps to a Solid Foundation

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13 Lessons (24m)
    • 1. Financial Mountain

      1:10
    • 2. My Financial Mountain: Path

      1:15
    • 3. My Financial Mountain: Foundation

      1:29
    • 4. My Financial Mountain: Plan

      2:07
    • 5. My Financial Mountain: Savings

      2:12
    • 6. My Financial Mountain: Debt

      2:18
    • 7. My Financial Mountain: Credit

      1:55
    • 8. My Financial Mountain: Extra Income

      3:23
    • 9. My Financial Mountain: Storms

      0:48
    • 10. My Financial Mountain: Obstacles

      2:11
    • 11. My Financial Mountain: Shortcuts

      1:37
    • 12. My Financial Mountain: Closing Thoughts

      2:47
    • 13. My Financial Mountain: Project

      0:56

About This Class

This course is a general guide to solid personal finances.... 

The course will guide you on a very realistic path to financial stability freedom. If you have financial difficulties, if you want to know more about your personal finances, if you want a method to follow and reach financial stability... this course is for you.

It is a very brief plan to get your finances back on track.  We all have financial needs and will be dealing with personal finances until death, so it is important for us to create a plan or to follow a plan to strengthen and solidify our finances.

Let's face it we will find financial emergencies, obstacles and difficulties, our best strategy is to be prepared.  This course will teach you or introduce you to what you need in order to get prepared.  It will show you a solid path to follow and what obstacles you might find on the way.

The course goes through defining 7 steps that you should take to understand and solidify your finances.

Who is the course for?

The course is designed for anyone that wants to learn more about their finances.  It is general enough so that anyone can jump right in and it is simple enough that there are no prerequisites.

The course IS NOT:

  • It is not an in depth financial planning, financial advising, financial cover all course.
  • The course is not designed to make you a financial wizard.
  • The course does not go into great details on methods and application.
  • Do not expect that the course will answer all or even most of your financial concerns. 

The purpose of the course is to serve as a solid overview and general guide of a true method or path to financial stability.

Join us..... Enroll Now!

Transcripts

1. Financial Mountain: Hello and welcome to my financial mountain, understanding your path to solid finances. My name is Julio Lara, and I'll be your guide or instructor for the course. So what can you expect? That, of course, the course is a basic overview off steps that you need to take in order for you to solidify your finances. It's a very important course for anyone looking for financial stability for financial freedom for a financial plan. Now remember, this course is just a overview. It's not gonna be able to give you everything. You need water for you to read financial stability. But it will teach you your steps that you need to take in order for you to reach that financial stability. If you have financial difficulties, if you want to know more about your personal finances, if you want to know a method to follow and reach your financial stability, this course is for you. So enroll now. Enjoy me on the path to financial freedom be our financial mount 2. My Financial Mountain: Path: thank you and welcome to the course. Let's start building our path up the financial mountain, which you realized that financial stability is a journey. It's not a destination. So now, to build a solid personal finance mountain, we need to start with a solid foundation. It also requires good planning. It requires savings, since obviously we're talking about finances, we need to realize that we're going to need to have some debt management for that management skills. We also need to realize that we need to address credit, understand credit and work with credit as well as we might reach a point off needing extra income, we're reaching the point of actually getting into investments now. This is just the order by which my research has shown that we could read financial stability, the fastest for to have sound financial stability. Now we will go into a little bit more detail of each one of these points in the final and slides 3. My Financial Mountain: Foundation: our first step up the financial mountain is foundation and foundation could be defined as something such as an idea, a principle or effect that provides support for something so basically, foundation. It's a support system now. If you don't have, or if you don't start with a good foundation, your plans are bound to collapse for the purpose of your financial mountain, your foundation is your mind set to mind our mind set limits us or it propels us. We normally have a scar city mentality when it comes to finances. We always think that we don't have enough off that there is not enough resource is for us, and that needs to change. In order for us to be able to build that solid foundation, we need to start thinking in abundance mentality. We need to start thinking that there is enough resource is or actually more resource is that won't need out there when we have the ability to obtain it. Our first step on the financial mountain is to have an abundance mentality. You need to believe for think, and then that's gonna push it toe, act as if all the resource is all right, our disposal. So you are only limiting yourself. You are You're only limiting factor 4. My Financial Mountain: Plan: So after you realize that you are your only limiting factor, whether you are your main obstacle in reference to your financial mountain, it's time for you to plan. And planning is defined as the act or the process off, making a plan toe achieve or do something, and the key word here is achieve or do something, So planning is for a purpose. You can't get anywhere unless you know where you want to go. So there are three steps or three basic steps from referencing planning for your financial mountain, and your first step should be to find out where you are. What is your current position? How's your dead or house wrinkle? Then you second step should be to find out where you want to go. What are your goals? Set goals and your third step should be to the side. How you're going to bridge that gap, how you're going to go from your current position to where your goals want to take you how you're going to go from your where you are now to where you want to be in the future and the best financial tool that I found in reference to your Financial Mountain. It's a budget now. I know that a lot of times we have negative connotations or negative thoughts about budgets . We think that they're limiting factors. But I want you to think positive about a budget, and if you think positive about it, is going to help you plan where you are and also get you to where you want to be, instead of the money controlling you or the money telling you where it's going, you actually are in control and you are actually telling your money where you want it to go . So budget is the number one planning tool that I found in the financial mountain. But make sure that if you are doing a budget when you start, keep it simple, because if you keep it simple, we're not going to stick to it, so keep it simple, otherwise you will not stick toe 5. My Financial Mountain: Savings: Let's talk about savings. Without savings, your financial plans are bound to crumble, so the definition of saving is the amount of money that you have saved, especially in a bank over a period of time. Now, keep in mind that you do not have to save in a bank. There are many other ways for you to actually say for many other places for you to save. But that is the more traditional or common practice. Now, most of the financial advice is that you talk to will tell you that in order for you to reach your financial stability for you to reach your financial goals, you need to pay yourself first. In other words, you need to save. And there are many different types of savings. For example, emergency fund sort savings, long term savings for projects, Pacific Savings just to name a few. You should include most of them, if not all in your financial planning. So what is emergency funding? Emergency fund is just saving for that For an emergency. Short term saving is saving for the short term saving for something, for example, like an appliance. Long term saving is saving for something that would take a longer period of time, such as retirement and then project specific savings is usually saving for something as it says specific, for example, saving for a car. So these are just a few off many different types of savings that you would encounter. Well, there you are recommended to actually have. So your first financial goal in the savings category should always be to start with an emergency fund. An emergency fund is gonna help you One emergency come up now. Notice that I said one. Emergencies come up. That if because emergencies will come up in your financial room in your path to the financial mountain, so be prepared. Pay yourself first. 6. My Financial Mountain: Debt: So let's continue up the financial mountain. Now let's recap a little bit. Once you have the right mindset, an abundance mindset and you have planned you have set some goals and you have understood what you're saving. Goals are you have an emergency fund in place. You need to understand and possibly leverage death. Your first step with dead is to understand what it is. So the definition of that is how to control the amount of money that you also that is basically debt management. How to control the amount of money. They you know, someone, and then you have to realize that there is good that and back there. Good refers to Theo. Wonder you could actually leverage and get a return on, for example, real state. If you buy a property, usually you get into death in order for you to actually buy it. But at the same token, you are leveraging it because you're hoping that the property would increase in value and you're not using all your capital to purchase it. So you have the ability of getting a return on it. In a perfect world. Now, the opposite of good death is bad. there and bet that refers to using that that does not yield a return for you. For example, credit cards with credit cards. Instead of you actually getting a return or getting some leverage, you're actually given somebody else that leverage for their return. So for your financial mountain for your financial plan, you should try to eliminate your bad debt as soon as possible because the quicker that you do that, the faster that you actually are able to implement other strategies to help you reach financial stability, your financial goals. Remember when you were obtained back death? You're working to make somebody else, Richard? 7. My Financial Mountain: Credit: so we are approaching the peak off our financial mountain. But before we get there, we need to discuss Crazy credit is defined as money that a bank or a business and I will add a person will allow you allowed person to use and then pay back in the future. And the reason why I added person besides bank for business is because of bank or business are not the only institutions that land credit other people do us well now. Understanding credit is very important. It can save you thousands over the period of love. Understanding how your financial decisions can affect the ability for you to get credit for purchases such as a house, a car eight business. It's very, very crucial information. You need to understand how your decisions affect your credit. How are your financial decisions affect the ability for you to be able to in the future? Obtain credit at certain percentages or interest Now because this is a general guide and the audience is international, there are many different rules and regulations that would affect for applied to credit. So what I would recommend is free you to actually put an effort into understanding your country's credit rules. What affect your credit? How can you improve it? White affects it in a negative or positive way. For the purpose of this course, really dis quantity. To be aware, I wanted you to be aware and understand that credit has a huge impact in your personal finances. The interest rate that you pay on loans can affect you great. 8. My Financial Mountain: Extra Income: Now we have reached a peak of our mountain extra income and investments. The definition off extra income is this additional source of revenue, and then the definition off investment is to allocate money or sometimes another resource, such as time in the expectation off. Some benefit in the future. So with extra income, you're getting additional source of revenue. So you're getting more money than what you normally do. And with an investment, you are putting your money or put in your time in a way that you were expecting to get a return. Now we're combined it, too, because there will be and later step in your journey. Now extra income could help you through our your journey as well. It's investments, but I don't want you to worry about him until after you have planned and after you have set goals, because then you could actually use them to help you expedite or get faster results. So how could extra income healthy If you have a budget and your pain? $100 let's say or 100 towards a credit card and now you have an extra income that you were not counting on for your original budget and you start paying 200 towards your card, you will save in interest and eliminate that a lot faster. So again, with extra income, it's money that you're getting that additional to your normal source. So that money you could allocate towards your credit card debt or towards your debt and eliminated faster, saving your interest as well. A saving you time in pay back. You can use your extra income in any part of your mountain. For example, nuclear user extra income to pay off that to work on building your emergency fund to build up savings toe buildup, retirement to say for a smoke project like a car for house for college, for school, etcetera. So you could see how extra income could become a crucial part of your financial path now investments. On the other hand, you shouldn't consider investment unless you have an emergency fund. It's one of the things that I think of that I recommend. You should not consider investing unless you have an emergency fund and you have eliminated credit card that if you have any, because if you have credit card debt and you were investing on the other side, you're an sleep hindering yourself because, for example, in a credit card that you detained 10 15 20% towards a creditor in your investment, you're getting a return of 57 or a maximum lexei of 10%. So instead of you actually getting a return on your investment were actually our pain out, that whatever you're making towards that credit card that you're pain for two of those creditors. So that's why I don't recommend you getting into investments unless you have an emergency fund set and unless you have your bad that eliminated. 9. My Financial Mountain: Storms: So now that you have realized what steps or the path of your financial Middleton, I want you to consider a few things and also keep in mind that stormy weather will come around. There will be obstacles. It is inevitable that you will find some financial setbacks. They are going to be times when you will want to give up. Remember, this is going to be a journey, not a destination. They are no magic pills or magic buttons. It's gonna take time. It's gonna take persistence. It's gonna take dedication. But the more that you prepare yourself mentally planning and then executing, the easier it will be for you to overcome the financial storms. 10. My Financial Mountain: Obstacles: so another. We've realized that we are gonna have some financial difficulties on the way we are going to see some storms. It's important for us to see what are some of those obstacles that we might encounter in. One of the first obstacles that we might encounter is a mental block, and a mental block is going back to ours. Car city mentality, thinking that they are limited resource is for us and limiting ourselves another obstacle that we might encounter on the way could be environmental influences and environmental inferences are just trying to live like everyone else in our environment, trying to fit in, going out of our normal ways to spend or into financial difficulties because we're trying to live the life of others in the United States is a phrase called trying to live like the Joneses trying to live like your neighbors. And that could be a big obstacle in reference of finances. Another obstacle could be unexpected for unplanned expenses. As we discussed before you are going to have financial emergencies, your car is going to break down, or one point your room for your house is gonna need repairs. Someone could have health issues you need to plan for this and that is a big obstacle sometimes in reaching our financial goals. Another issue or another obstacle might be economic environment. And these are those that we might not have as much control over such as inflation, taxation, unemployment. And it's important for us to know that that will happen. And we need to prepare accordingly. And the final one that I would like to discuss, even though there's many others obstacles, is discouragement. You will reach a point in which it seems like you're just spinning your wheels. You want to give up. You don't want to continue. Thank you were working and nothing is getting better. Do not despair. Stay the course. Remember, it's a journey. 11. My Financial Mountain: Shortcuts: So let's talk about shark. It's when your path and the journey you will find times when you might want to bypass the path and go on a short. You might try to invest before setting your emergency fund. You might try to get around without a plan or a budget. You might try to establish credit without a good plan for that credit. And keep your mind at a little mistake or is slipped will set you back further than staying the course. I hope that you do not take a shortcut and that you actually stay the course that you follow. The financial path has stated. Think about this example. If you invest before setting your emergency fund, you're investing in a stock market or you invest in a mutual fund and you don't have an emergency fund, and suddenly your car breaks down. You don't have money to take care of it. Now you use a credit card to pay for that repairs the festival credit card. Now you're paying higher interest. Then, if you have used the money that you had invested and actually had it in an emergency fund now, you might say, Well, I have it on an investment so I could take it out of there. You might have penalties. You might lose money cause you don't know how the market is doing at the time of the emergency takes place. So that is just one of the examples off how trying to take a shortcut to reach a financial end or financial goal might actually be catastrophic for you. 12. My Financial Mountain: Closing Thoughts: So now that you have a general idea off what your financial pyramid for financial Mountain should look like, and you have an idea of what the obstacles might be, at least some of the obstacles that you might face let's put it all together and do a little summary. So your first step on the financial mountain should always be a mental strength. You should always have an abundance mindset. If you do not have a mental strength or an abundance mindset, it's gonna be very difficult for you to actually be able to continue on the path. Your second step after you have your mindset, said toe Abundance is to actually plan is to create a budget. That will be the first thing that I would recommend from the planning side creative budget so that you could figure out where you are and tell you money where you want it to go. After you have a plan in place, then start saving. Create a saving plan, and the first step in the savings plan or the saving category, I would say, will be your emergency fund. Make sure that you create an emergency fund and funded funded so that it could prevent further issues. If you actually do encounter an emergency. So again, mental health, mental strength plan ahead safe. Then after that, your step will be to learn about your death. How to manage that, making sure that you get rid off all of your bad and you maintain the good one. You leveraged the good one. After you have debt management, make sure that you understand credit and how to actually use credit to your advantage. And then, finally, to use extra income to facilitate all of the other ones, you could use extra income to help you plan better or budget. Better to save faster to get rid of that day, as well as to build up when your credit and investments will be your top or your last part of your mountain. The top of the peak off the mountain will be your investments. You want to invest after you have your budget in place after you have emergency plan Emergency fund after you have short term savings. After you have your depth under control and your credit is in a good spot, then you consider investing. So that's what our financial mountain should look like? Start with your mind plan safe. Eliminate that use credit wisely and leverage income as well as investments. 13. My Financial Mountain: Project: I just wanted to take a moment to thank you for your time for your attention. And that is very valuable to you when you decided to take some time to go through this course. So thank you. I hope that you have found some value in this course or in this guy. Remember, it is only a general guide, but it should help you. The sign, your financial path. I hope to develop some specific classes in the future to go more in depth on some of the strategies and tips for each of the steps on the mountain. So stay tuned now for your final project. This make it simple. Just tell us what is your biggest financial obstacles. And if you do, where will provide some insight, some tips on how to overcome it. And if I can't and I'll find you some resource is that would thank you again. And I hope you have a blessed day