Money, money, money… We spend an amazing amount of time, energy and emotions around money – loving it, hating it, worrying about it, being frustrated or depressed by it. And it doesn’t seem to matter if we have a lot or a little – there are financial concerns and anxieties at every income level. Even winning the lotto, cashing in your stock options or inheriting a fortune can prove extremely stressful. We can easily feel overwhelmed by debts, the myriad of investment choices, the general economy, job security, and pressing retirement decisions so it’s tempting to avoid dealing with our money issues altogether.

So what’s the big secret to financial success that no one is telling you? There isn’t one! In reality, money isn’t all that complicated or interesting – even for a financial educator and planner like myself. It certainly doesn’t deserve all the press it gets – either positive or negative. Don’t get me wrong, I too love money. There’s nothing inherently wrong with enjoying what it has to offer – the freedom it gives you to live the life you want – the ability to care for your family – having the wherewithal to contribute to causes you believe in.

6 things you need to know to be successful with money
In the end, though it is all very simple. As far as I can tell after 25 years in this business, there are only 6 things you need to know to be successful with money. Do these things and you can then put money on the back burner where it belongs.

1. Don’t spend more than you have coming in. In other words, know exactly what’s coming in and what’s going out and stay within the lines. Some of you may think this is obvious and simple – well, you’re right. It is simple. Trouble is most people really don’t know exactly how much they bring in from all income sources. They know far less about what they spend and where their money really goes.
2. Keep your lifestyle debt to a minimum. This refers primarily to credit card and line of credit debt that creeps up month after month, year after year. We are a nation of debtors, but this doesn’t mean you have to be part of the craziness.
3. Create a surplus over time. Review your cash ins and outs and make sure there’s some left over for emergencies and future savings.  Not always easy to do, but this is absolutely essential if you want to retire someday or avoid a potential financial crisis from job loss, illness or another inevitable downturn in the economy.
4. Make sure you understand the basics of investments. Do a little advance homework and set a game plan for buying, selling and holding – and stick to it. Know exactly what fees you are paying and what services you can expect for those fees.
5. Know when “enough is enough.” Do you know how much money you really need/want at this specific stage of your life (student, business owner, family person, retiree).  How will you know you’ve reached this target?  This is partly a philosophical question that merits some reflection and partly just some basic number crunching.
6. Appreciate what you already have. It might sound trite, but there is a great sense of relief and freedom in acknowledging your past successes and appreciating what you already have. This is not only about the material goods you own, such as your home, investments and savings, but also about your education, job satisfaction, family and friends, talents and skills, quality of life and so on.

If you live in Canada, chances are you already have more wealth, health, happiness, and security than the vast majority of the world’s population. There is much to be thankful for. Relax a little.

You’re probably richer than you think. Honestly! – Karin Mizgala

Karin Mizgala is a Vancouver-based fee-only financial planner with an MBA and a degree in psychology. She’s the President of LifeDesign Financial and co-founder of the Women’s Financial Learning Centre.