4 Smart Financial Advice
Posted On March 9, 2019
Take care of Your stuff
When I was a kid, I remember my parents told me to take care of my stuff. Some people just blow it off because they are not paying for their stuff.
Now that I am on my own and is paying for everything that I buy, of course, I want to make stuff last. It is guaranteed that if we take care of our stuff, we will be able to save thousands of dollars in our lifetime.
Let’s have an example which you don’t even realize. In your apartment, you made a sort of deposit for security and usually, it’s about a month rent in case of damage at the end. With this, it is important to you take care of it. Clean it regularly and avoid any scratch or den ton the wall so that in the end your landlord will not charge you for any repaint or repair.
When you buy your house, it is even more important to take care of it. Paint your house every after ten years or early. When using your household utilities such as refrigerator, dryer, stove, washer, air-conditioner, dishwasher, and more, always follow the manufacturer’s advice or instructions. Getting a service contract that protects your service utilities make a lot of sense.
Let’s talk about your clothing. If you properly care for your clothing, it is more likely to last twice long, in contrast, to clothes that are not taken care of. It is the same thing as your house furniture. Cleaning it regularly and using it correctly can make them last for a decade.
It is necessary to realize that maintenance costs and repair is essential in the short term, but the cost of not repairing and maintaining stuff is more significant in the long run.
Live below your means
I shall say that if you want to manage your money successfully, then live below your means. I am sharing this to you because I have experienced its bad effect, I have recovered, and I don’t want you to make the same mistake.
Correct me if I am wrong, but most of us want to have everything. We couldn’t wait for the right time until we can afford it. So what happens if we continue to purchase the things that we cannot afford? We will continue to downward spiral until we become bankrupt.
The point is that if we live below our means, we will always have extra money to save and to invest. For over the years, the money that we have will continue to grow and help us find financial security.
Always remember that living below our means does not mean living poorly, it only means prioritizing the most important things.
Save 90% of your Bonus
Some people plan bonuses into their lifestyle which is a quick way to become financially troubled. Realize that a bonus is not a guaranteed income and it changes from year to year, and sometimes, bonuses do not come at all. In this situation, you may end up in a bad financial state.
Take your bonuses as a financial surprise whenever you get it. Take 10% of it to buy the stuff that you want (Things that are not your need.) while taking 90% of it for your savings or investments. Include your unexpected income in this principle and use it to get ahead financially because if you make an attitude that it is a found money, you will have the tendency to waste it rather than use it wisely.
Get rich slowly
I’m sure you’ll agree with me that 99% of millionaires earned their money over time. Only very few people become millionaires overnight. Of course, we read some exceptions: lottery winners and inheritance. They are the exemption but realize that this does not happen to all. People grow their net worth over some time.
Most of the time, millionaires started with a little or no money and a little knowledge to make it grow. Like you, they started work from school and earned little money. Over time, their income increase, they save and invest more money.
Millionaires have learned a bit more about personal money management, and they made a good or bad money management decision. They did not live largely but lived well. They didn’t care about conspicuous consumption, but they care more about receiving the best value for their money. They developed their principles of money management and followed them on their journey to wealth.
Remember to enjoy your trip to wealth but do it properly.