I wrote this article awhile ago however it still applies. Perhaps more now than before given the economy. While it is geared more to newcomers on the personal financial front it is something we all need to consider from time to time. If you are contemplating starting your own business it is certainly relevant.

If you’re like me you are seeing a lot more articles, stories and curriculums around “Lifelong Learning”. In fact many community, four-year colleges and universities have entire departments devoted to Lifelong Learning. I find that to be a very good thing. It is my belief we should never stop growing and in order to do that we must expose ourselves to new things. For some that might mean getting a long awaited high school, college or graduate degree. For others it might mean woodworking, pottery, photography or a host of other activities that teach us new hobbies or skills. After all we’re never too old to learn something new if the desire is there. In addition it keeps life interesting and I might add exciting.

Okay, you are asking yourself “what’s this have to do with financial matters or my personal net worth?” Well, quite frankly a lot! If we are going to be "students of life" we have to evaluate all aspects of our lives and that includes financial matters. July is the perfect time of year to reflect (the fourth quarter kick) on how we did during the first three-quarters of 2008. This can be a painful process for some of us, however a necessary one.

So if you want to be a "financial student of life" I suggest you consider the following items:

1. Review or create your budget: I maintain the vast majority of us should have a budget. The reason quite simply is it helps define (a) the money coming in and (b) the money going out. Budgets help us develop a financial roadmap or plan so we know what to expect. Budgets by themselves do not make financial challenges go away, however they can highlight certain things (both good and problematic). If you have a budget I encourage you to review it every year. Look at each category (food, phone, heat, electric, rent, mortgage, entertainment, savings, etc.) and modify each area accordingly. Whatever you do be realistic. This is not fiction writing so don't kid yourself. Lastly, if you don't have a budget and you struggle with financial matters I suggest you develop one immediately. There are many terrific resources on the internet that can provide you with the knowledge and tools necessary to create one.

2. Evaluate your financial maturity: When I suggest we all evaluate our financial maturity I am not referring to our chronological years but rather one's maturity or ability to responsibly handle money. Like me, you probably know people that are very good and very bad with money. Their birth date does not immediately equate to their financial maturity. We should all consider our financial maturity when it comes to money. What stage are we in now? Are we financial infants, toddlers, teenagers, young adults or mature adults? This is important if we are to continue our financial growth.

3. Acknowledge your income: One of the most difficult things for many of us to accept is our financial compensation. What I mean by this is for the vast majority of us, our jobs carry a certain value. If I am a "you name it", my job is typically worth between $x and $y per year to my employer. I bring this up because when people develop or review their budget they frequently go to a bad place when there is a budget shortfall (not enough money). Typically people think or say such things as, “I am getting taken advantage of by my employer and I need a big raise. If I made more money this budget would not be a problem." While that might be true in your situation for the vast majority of us it is not. Like it or not most of us fall in between the lines on what our roles command. Quite frankly we have to acknowledge the situation for what it is and develop our budgets around our income.