Taking care of one’s finances is all about making the right choices. And to make the right decisions, you need to know what is good for your finances and what is destructive.
Unfortunately, looking at how society have evolved, the norm may not necessarily be supportive of proper financial management. There are a couple of lies that you may be telling yourself that could lead to your financial ruin. Even if everyone you know is practicing it, that does not mean it is correct. So here is a list of wrong assumptions that you may be telling yourself. See if these apply so that you can correct them and save yourself from making bad financial decisions.
First of all, some people think that saving for retirement can be put off for later. There is no such thing as saving too early. In fact, the earlier you start, the more secure future you will have. You don’t even have to think of it as your retirement money. Think of it as your emergency or reserve fund. This will literally save you from a lot of future disasters. When an emergency expense is needed, you don’t have to borrow money or rely on your credit card to help get you out of a tight spot. You can dip into your savings and save yourself from all the interest rate and overall stress associated with debt.
Another lie that is quite common for people is basing their purchases on what they can afford. For instance, just because you can afford to buy a luxury car, it doesn’t mean you have to. Even if you qualify for a million dollar home, it does not mean you should buy one. If you really want to make wiser spending choices, make sure you only buy based on what you need - not how much you can afford. If you only need something that costs less, then put the extra money on your savings. That is the wisest move that you can make.
Society has put so much importance on material things. Although it can really help make your life convenient, all of that will be overpowered by the debt payments that you have to keep up with. If you want to buy something expensive and is clearly just to appease your ego, then make sure you pay for it in cash. Be more confident about yourself and remove the notion that your money will define your success. You may be surprised that some of the self made millionaires in the country have simple needs.
You don’t really have to live a frugal lifestyle in order to say that you are making the right financial decisions. You just have to make sure that your spending is not ruled by expensive price tags. Keep in mind what you just need and stick to that. You do not have to possess the priciest items to prove your self worth. Live within your means and grow your savings - that is how you can be deemed as a financial success.
Unfortunately, looking at how society have evolved, the norm may not necessarily be supportive of proper financial management. There are a couple of lies that you may be telling yourself that could lead to your financial ruin. Even if everyone you know is practicing it, that does not mean it is correct. So here is a list of wrong assumptions that you may be telling yourself. See if these apply so that you can correct them and save yourself from making bad financial decisions.
First of all, some people think that saving for retirement can be put off for later. There is no such thing as saving too early. In fact, the earlier you start, the more secure future you will have. You don’t even have to think of it as your retirement money. Think of it as your emergency or reserve fund. This will literally save you from a lot of future disasters. When an emergency expense is needed, you don’t have to borrow money or rely on your credit card to help get you out of a tight spot. You can dip into your savings and save yourself from all the interest rate and overall stress associated with debt.
Another lie that is quite common for people is basing their purchases on what they can afford. For instance, just because you can afford to buy a luxury car, it doesn’t mean you have to. Even if you qualify for a million dollar home, it does not mean you should buy one. If you really want to make wiser spending choices, make sure you only buy based on what you need - not how much you can afford. If you only need something that costs less, then put the extra money on your savings. That is the wisest move that you can make.
Society has put so much importance on material things. Although it can really help make your life convenient, all of that will be overpowered by the debt payments that you have to keep up with. If you want to buy something expensive and is clearly just to appease your ego, then make sure you pay for it in cash. Be more confident about yourself and remove the notion that your money will define your success. You may be surprised that some of the self made millionaires in the country have simple needs.
You don’t really have to live a frugal lifestyle in order to say that you are making the right financial decisions. You just have to make sure that your spending is not ruled by expensive price tags. Keep in mind what you just need and stick to that. You do not have to possess the priciest items to prove your self worth. Live within your means and grow your savings - that is how you can be deemed as a financial success.
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