6 Money Truths I Wish Someone Told Me Sooner
I’m going to share some money management ideas I wished I knew earlier, or someone thought me before my 30’s. Those ideas will help you manage your money and income, encourage you to save, and understand what is better for your finances.
6) MINIMALIST LIFESTYLE
Cut back one the clutter.
Adopting a minimalist lifestyle helps you understand what is important to you and your life, what items you should buy and what to avoid, what use everything has in your life, and where you need them.
In Materialistic life, you end up spending more money on items you don’t need, which end up costing you more.
Many things that we buy we think will bring happiness in our lives, but as studies shown, you don’t need much stuff to be happy in life. Simple things bring you joy and happiness like relationships, adventures, experiences, which most of them are free.
Start by clearing your home, throwing or donating things you don’t need, and using it. Try to keep things that have and give meaning to your life.
Try to keep things that have and give meaning to your life.
5)AVOID DEBT AT ALL COST
You should go online and search for the average amount of debt in America. The results will scare you.
- Home mortgage
- Student loans
- Credit card debt
- Personal debt
- Car debt
Before you go and take $10.000 of personal debt, think twice and thrice before you sign.
Before you go and take a car loan for $300 per month, think twice before you sign.
For both of those examples, you need to think, do you need it? Will it help you achieve your goal? Will it help you make more money? Is it a good investment to take a loan for $10.000? If yes, of course, go ahead and do it. But if it brings you to more debt than you are, you should avoid it at all costs!
The same goes for the car. If you have one, do you need to buy a second? Or a newer model? If you don’t have any vehicle, do you need it to go to work? Or public transport saves you more money in the end?
I will give you a tip.
Instead of taking a loan for $300 per month, can you save $300 per month instead? Yes, you can. From the time you would be paying $300 per month, save for 2–3 years and use the cash saved at the end.
$50.000 in the bank account is better than $100.000 of debt.
All those questions you should answer before you act.
4) CREDIT CARDS - USE THEM AS TOOLS
Avoid credit cards if you are a consumer and spend money on things you don’t need.
Instead, use them for :
- Rewards
- Bonuses
- Flights
Use them to build a better credit score.
When you have a good credit score and are disciplined, many doors can open for you to use, to your advantage.
3) FREE INFORMATION
When you want to expand your knowledge and learn new things, most of that wisdom is free. meaning you don’t need to buy Online courses in things like:
— HOW TO BUILD CREDIT SCORE FOR $1000
— HOW TO MAKE MONEY WITH 2 STEPS FOR $2000
or for seminars and especially for
— SEMINARS IN HAWAI FOR $10.000
Instead, read a book for $20 it will teach you more from a seminar
use sites like:
UDEMY
SKILLSHARE
Find the right value in online courses; find the right people to lead you in the things you want to learn.
2) LOOKING RICH MAKES YOU POOR
The first rule is to DON’T SHOW OFF.
Some people’s salary is $200.000 per year, and they want to show it to their friends and high-school students that they are successful in life by buying a new Rolex, a nice car, or a boat, all of which doesn’t help them in the long term.
In my high school, we had this family, every time they drop off their kid in school with an Escalade $90.000 car and a big house with their 70 inch TV
They probably made $100.000 per year, and they end up spending $150.000. They might appear to be winning and doing something in their social status, but they fail in reality. It isn’t brilliant to flash things to be happy in life.
Remember the story with the janitor with $8.000.000 in his bank account made through investing in the right deals, but he lives in a regular home while wearing traditional clothes.
Don’t spend money to look good or make others jealous.
1) RETIREMENT PLANS
Lastly, make a retirement plan. The sooner, the better.
Find a financial advisor
Make an IRA Plan
Pay the IRS
It is better to be 37 Years old with $200.000 in the bank than in your ’40s or ’50s with none.
It makes you feel better to be more comfortable and confident.
Conclusion
These are some easy steps to follow that will help you in the end, how you do it. It depends on you.
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