This Graph Will Tell You Your Financial Future

I want to talk you through a theory that might change how you see money and education.

I’m calling it… The Spectrum of Personal Finance.

The Spectrum of Personal Finance

Picture an imaginary spectrum.

On one end, you have “knows the value of money” or “good with money”.

On the other end, you have the opposite. Bad with money.

Everyone is on the spectrum of how good they are with money.

• Spending

• Saving

• Investing

Everything to do with money.

I’d put myself right at the top end, and chances are, if you’re reading this, you might be close to me too.

The higher up you are, the better you are with money, and the more you understand what money can do for you.

Also, the more you can live below your means, as you have a clear vision of the benefits this will give you in the future.

If you gave someone at the top of the spectrum $10, and someone at the bottom end $10, what do you think they’ll do?

What do you think that they are capable of doing with it?

The $10 is worth more in the hands of someone that is higher up the spectrum.

For someone at the bottom of the spectrum, their $10 might be worth $10.

But, for someone higher up, that same $10, could be worth the same as giving the other person $20.

Why?

Because they’re better with money.

Because the money is worth less to those at the bottom of the spectrum, it’s likely their money is going to be spent poorly.

What’s the problem here? How do you move up the spectrum?

Education.

The more you know about money, and the more you understand its power, the higher up the spectrum you go, and the more your financial situation will improve.

Your money will become more valuable through knowledge.

Living below your means becomes possible when you learn how valuable money can be.

Living below your means is rare, because nobody knows enough about money or personal finance.

Since then, I had a play around on Canva, and here’s a visualisation of what I am trying to explain…

If you’re still scratching your head on the idea that improvement comes from education, let’s talk through some examples.

I present to you, The Spectrum of Personal Finance.

A Good Example

When it comes to putting this into practice, what better example to use than… me.

When looking at the diagonal line, I’m someone that’s quite high up, and to the right.

This means two things:

• I have a good knowledge of money.

• I am capable of living well below my means to better my future financial situation.

The second bullet point is a result of the first.

I understood that money had a greater meaning than a pack of sweets at the local newsagents.

I don’t know how, or why, but this was the reality that I faced.

My knowledge of money & finance only increased after leaving school. It was something that interested me.

Once you start teaching yourself the things that you want to know, it brings value to your life.

It’s correlated into me being able to make financial sacrifices in my early adult years. It was easy to visualise what the money could do for me in the future.

Fast forward a few years, and my life has changed for the better, and I credit all to self education.

I’m now self employed, in a great position financially, and able to build a brand helping others do the same.

This spectrum or graph is financial education 101.

It explains the benefits of financial education, and how it can benefit you.

If I were to draw lines to represent my current situation, it would look like this…

Strong financial literacy leads directly to an improved financial situation.

A Bad Example

A bad example is far more common than a good example.

This theory suggests a lack of financial literacy is why people put their future selves at a disadvantage.

One of the biggest differences between those who succeed and those who fail is this:

• Those who aren’t successful — stops learning once they leave formal education.

• Those who are successful — unlearns what the masses know, and goes on a path of self education.

Which one are you?

And which one do you want to be?

How many people do you know that wish they could make changes in their lives?

How many people do you know that would have different lives if money wasn’t an object?

It all starts with education.

If I was to draw lines to represent where a lot of people are, it would be like this…

A lack of financial literacy leads directly to a worse financial situation.

Moving Up The Spectrum

If you do find yourself to be low down on this spectrum, it isn’t your fault.

The societal structure is designed so you stay as low down on this spectrum as possible.

Why?

By feeding you information that is both false and irrelevant.

These blogs exists for the sole purpose of trying to help you move up this spectrum.

Enabling you to:

• Learn more about personal finance

• Find more value in money

• Identify ways that you can use it to start living the life you want.

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