Some tips on personal finance can be expressed in one understandable phrase. This is just the case. From investing to your own life path, we present you with recommendations on how to relate to your money..
1. Make only investments that you can explain to your children
No, the explanation is “Because Elon Musk is cool!” – does not fit. As Warren Buffett says, “Business schools teach that complex behavior is better than simple. But simple behavior is more effective. ”.
This is also true for investment analysis. You must understand that the company whose shares you are buying has a unique selling proposition and if you can tell in a nutshell what this offer is, you understand it.
2. One of the best investments is an investment in yourself
Every day, investing in yourself, you will improve your skills, connections, health, body and mind. No matter how much you spend on it, in any case you will see the result.
Often, this may not require large investments: healthy eating encourages you not to buy food in fast food, you can practice sports for free, and reading books, for the most part, requires only your time, not money. In addition, this is the only investment result that you can almost completely control..
3. If you spend your money on things, you will have things left, not money
Not only the cost of purchased items begins to depreciate, but the joy of the purchase, too. “What incredible, awesome shoes I just bought!” In a couple of weeks, it will be just shoes for you..
4. When you work for someone else, your income is always limited
Personal finance tips are definitely not without it. If you work for someone, you always rest against the ceiling. Yes, you can get promotions, apply, bonuses and so on, but your salary and position will always depend on who is “above” you. Start creating your own business, and then your income will depend only on you and the strength of your desire.
5. Save at least $ 1 out of the $ 10 you earn
Instead of trying to figure out how to make $ 1,000 a week, first find ways to save $ 1,000 a year. It is not that difficult. Check the tariff on the phone, make morning coffee at home, take lunch with you, cancel a couple of meetings at the bar on the weekend and limit yourself to excessive shopping.
And do not say that you “deserve” these things. What you really deserve and what makes you happy is a life in which you will not constantly worry about money. Therefore, any advice on personal finance from absolutely all financial gurus and millionaires says that you should save at least 10% of your income regularly.
6. A loan takes a few minutes, and it may take years to repay
Do not think about how long it takes to get a loan. Better think about how long it takes to pay for it. The essence of loans is the purchase of those things that you have not yet earned. This approach to yourself and your money will disastrously affect you. The flexibility of your daily life will decrease, because you will be required to give a substantial part of your income to the bank.
7. Always choose your own path in life.
Make a spending plan that is right for you. Make the right investment for you. Choose your career, your school, your business, all because it suits you.
Do not buy a specific car to impress other people; buy a car that is right for you. Do not buy a specific house to impress other people; buy a house that suits you.
Not only will you make better decisions about personal finances, you will also be much happier because you will live the life you want.
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