What came first, the hammer or the nail? The question is less complicated than the chicken and the egg riddle. We’ve mentioned many times before on this site that money is a tool. We have never specified what type it is because the type of tool does not matter as much as understanding the concept that money is a tool. For the sake of the metaphor, we are making the tool a hammer that money is. It could have easily been a saw or a screwdriver. The nail in this metaphor represents a problem that the hammer/money can solve. In reality this is an imperfect metaphor because the nail is also a tool, and the true problem to be solved is what the nail and the hammer can build together. Nonetheless, sometimes an imperfect metaphor is necessary to drive a point home.

To answer our riddle of what came first, it would be the nail because the nail represents a problem in this imperfect metaphor. Choosing the appropriate tool to solve a problem is very important. Trying to cut down a tree with a hammer will be very laborious. Also, the quality of the tool is also important. Trying to cut down a tree with a dull saw is also labor-intensive. Last but not least, the operator of the tool is even more important. An experienced carpenter can make good use of poor-quality tools, but a journeyman on their way to becoming a carpenter will struggle with the best-quality tool until they become experienced. It’s your responsibility as a carpenter–metaphorically speaking–to develop yourself to utilize money in order to build the life you want, and the following suggestion can help you do that.

FORMAL EDUCATION 

Despite what conventional wisdom says, you do not have to have a degree in accounting, finance, business or economics to be financially successful. Any pursuit of higher education in any field will contribute to your personal development and will contribute to your financial success. 

Siteselection.com provides information on lifetime earnings of degree holders at various levels. The site reports that an associate degree will provide you with 25% and a bachelor’s degree will provide you with 75% higher lifetime earnings than a high school diploma. Master’s degrees and doctorate degrees also provided higher lifetime income than associate’s and bachelor’s degrees. 

The higher the degree, the higher the lifetime income, but also the higher the cost. A major factor in why more people do not pursue more advanced degrees is because of higher tuition costs and more demand for their time. If a person can take advantage of scholarships, pay out of pocket, or have their employee cover their tuition, they have the benefit of keeping more of their take-home income. As for the demand pursuing a degree will have on your time, the best a person can do is try to utilize time management strategies because there are only 24 hours in a day.

Keep in mind that how much money you make is one way of defining financial success. Another way of defining financial success is how well you utilize the money you make to achieve your goals. Formal education will help you better utilize the money you have.

COMMUNICATION SKILLS

It’s an understatement to say that communication is important. The truth of the matter is that communication is indispensable when dealing with people. Due to the complexity of different individuals, different cultures, and different people in different places across time and generations, words and gestures don’t always mean what they mean or what we think they should mean. For this reason, having poor communication skills will be a major barrier to a person’s financial success and life progression.

Communication is multidimensional. A person must send information and receive information, and how well they do this will guarantee their success, not only financially, but in all aspects of their lives. To improve your communication skills, you must work on your verbal, nonverbal, and writing skills.

VERBAL

Remember communication is interaction with people, and how well you communicate verbally is important. Over the span of a person’s lifetime, whether they are an employee or an entrepreneur, they will need to communicate verbally with individuals. If you are a manager, supervisor, or leader, you will need to transmit information to subordinates. How well you communicate to your subordinates will determine how successful you are as a supervisor, leader, etc. This will lead to higher pay, which is one part of financial success. The first step to being a good verbal communicator is the ability to listen. People like to talk, especially about themselves. If you’re able to listen with great interest, you will be able to learn volumes about a person.

Negotiation is another aspect of verbal and nonverbal communication, and how well you do this will also improve your odds of financial success. A great negotiator will be able to negotiate higher pay, better benefits, and more responsibilities in the workplace. In business the skill of negotiation is just as important. You will be able to negotiate better deals with suppliers, business partners, employees, and even business competitors.

NONVERBAL

Not all aspects of communication are verbal; a major aspect of communication is nonverbal. What is not said can be just as important or even more important as what is said. Even though many people are not as forthcoming with their thoughts and feelings due to social norms and the fear of rejection, their body language says a lot. If you’re able to master the art of reading body language and communicate decisively with your own body language, you can take your communication to the next level. Before you can communicate trust, confidence, and empathy through your gestures, you must be able to observe well. Being able to observe a person’s body language is just as important as being a good listener.

Being able to read body language will give you the ability to know when to have certain conversations with certain individuals. People are more receptive to criticism if they are in a good mood. Also, you will be able to see if a person is receptive to the information you are providing. If they look like a deer in headlights, there is a great chance they are confused. This will give you the opportunity to adjust the message or the delivery of the message. The saying, “It’s not what you say; it’s how you say it” holds true.

WRITING

Another form of communication is writing, and it is no less important than verbal and nonverbal communication. To be an effective verbal communicator, you must also be a good listener. To be effective at communicating nonverbally, you must spend time observing individuals’ body language and deciphering the proper message. Similar to those, if you want to be an effective writer, you must make reading a priority.

Before recording devices were invented to capture the voice and image of a person, ideas were passed down through writing. You did not have to be in the same room as the speaker to reap the benefits of their ideas. Being a good writer will help you move along in your career because you will be able to communicate your thoughts and ideas. Also, once an idea is put on paper, that is proof that you are the proprietor of that idea. Being a good writer also can provide financial benefits because you can make it a career. A good writer is a storyteller, and it does not matter if it is technical or creative writing. Society will always have a need for storytellers.

PHYSICAL HEALTH/MENTAL HEALTH

Unfortunately, our physical/mental health is the first sacrifice we make when we encounter many stresses. Which is normal activity for humans because whenever we pursue anything difficult, stress tends to be a byproduct. During high stress, quality of sleep, a balanced diet, and some form of consistent exercise are compromised.

The reality of the matter is when we compromise our health, it decreases our chances of success. The long-term effect of a poor diet, poor sleep quality, lack of exercise, and lack of rest will lead to poor cognitive performance and illness. The good news is you don’t have to compromise your health in the pursuit of success. The challenge comes with changing habits and prioritizing your health and allowing your ambition to be a byproduct of a healthy lifestyle.

If you construct your life around getting quality sleep, eating a balanced diet, exercising, and getting plenty of rest, you will be able to make better financial decisions and avoid burnouts, hence be more productive, and this will lead to financial success.

FINANCIAL LITERACY

As mentioned earlier in the formal education section, you do not have to invest in a business, accounting, or finance degree to reap the benefits of education, but you do have to become financially literate to further improve your odds of financial success. The good news is that you don’t have to pursue a formal education to become financially literate. You can pursue this on your own with time set aside daily to improve your financial literacy. There are many courses online that cover all aspects of finance and personal finance. You can also explore many topics on personal finance through books. We suggest that as your financial literacy improves, you make an effort to put your knowledge into practice. What is the point of acquiring a quality hammer and training yourself to use it and not going out and building something?

The benefit of being financially literate is that you will make better decisions in your financial life. You will be able to discern a good deal and be able to identify con artists and predatory business practices that aim to separate you from your money. Being financially literate is the difference between making a million dollars over a lifetime and retiring with ten times that amount. Unfortunately, despite many individuals’ substantial life earnings, they end up running out of money a few years into retirement.

LEARN SOMETHING NEW

Everything is connected in one way or another. The more experience you gain in life, the more you start to see how true this is. The benefit of learning anything new is that it makes you a better learner. Learning to play the guitar and learning to rollerblade are two different disciplines that require different skill sets. Even though they are different, they both require the use of the brain, and that is where learning is done. The more you practice anything, the better you become at it. This skill is extremely beneficial in life because not all challenges you face, you will have the luxury to prepare for. 

Some challenges you will be facing for the first time, and the only tools you will have in your possession are the will to not quit, patience for yourself, and the confidence that you will figure it out. When you’re committed to being a student of life and willing to take on all challenges as an opportunity to learn, you will unlock the universe of opportunity and reap the benefits of success.

YOUR SPOUSE/PARTNER

Your spouse or life partner will be one of the most important, if not the most important, investments in your life. Many successful people credit their success to their spouse or partner. The pursuit of a dream can be a lonely and difficult journey even if you are passionate about what you’re doing. Having a supportive partner can be what keeps a boat from sinking. Also, what is the point of gaining the world and having no one to share it with?

The benefits of having a supportive partner are accountability and having someone to balance you out. Having someone that will help you stay on track can negate the effects of procrastination and distraction. Also, we as individuals are not perfect, and even if we invest time and money in ourselves as we should, we will never be perfect beings, but what we lack in skills, quality, or character can be made up by a spouse or partner that possesses those attributes. It is not likely for a person to be introverted and extroverted, but having a partner that is introverted when you’re extroverted can be very beneficial.

FINAL THOUGHT

Investing in yourself is not a simple task. You must be able to evaluate yourself, discover your strengths and weaknesses, and be committed to self-development. Self-development is a lifelong journey. There is always something new we can learn that will enrich and benefit our lives. We must also work to maintain the skills we already have because if we do not, we can lose them. The benefits of investing in yourself and developing yourself will have benefits far more than just financial. The quality of your life will be tenfold. The relationship with your children, parents, spouse, and community will be fruitful. The journey to self-improvement can be tedious and difficult, but it is worth it.