“He who buys what he does not need steals from himself.” —Swedish Proverb
Because I had nothing else to do, I would waste money.
We know flight tickets gets pricier as the date of travel approaches. We planned to go to India, our home country, in the month of December. I initially planned to buy the tickets as early as July/August, checked the price and they were, in fact, the cheap. But, I did procrastinate. I didn’t buy the tickets till November and as expected, I had to buy those two tickets at a higher price.
We do procrastinate all the time. Be it the time to get a shower, time to wake up in the morning or to pay the bill before the ‘due date’. Delaying on things cost dearly. In the financial domain, prices soar, demands change, stocks go higher or lower. Time decides how much money you can make from stocks. Time determines if you need to pay late pay penalty on your credit card bill.
As much as we don’t like to think about money, or how little there always seems to be, the truth remains: money matters. Even the best-intentioned budgets can quickly spiral out of control if unexpected extra expenses begin to pile up such as car repairs, emergency home improvements, or overdue taxes. It can begin to feel overwhelming, but there are ways to arm yourself so that you don’t feel like you’re losing your grasp on your finances.
If you’re already thinking about how to get a hold on your financial situation or get things back on track, then you’ve already taken a step in the right direction. Facing the problem head on may seem like a difficult thing to do, but ignoring the problem is much worse. Here are a few action items to get you motivated and make you feel more in control.
I was going through a recent story about how cancer patients experience the financial worry. As per the report “Four of every five such American patients and their spouses-caregivers in the study said they had concerns about meeting medical costs and suffered “financial stress.” Worries about paying medical costs also were tied to lower mental and physical health, the study found.”
Not only among patients, the financial worry is one of the most common factors behind poor mental health and it’s the biggest reason for crime. In this era of gadgets and increased social interaction (although mostly virtual) people need money in the bank. More than what our parents or their parents needed, we need money. Naturally, financial worry becoming more and more widespread.
Imagine a 20 something just starting their work life after finishing college education. He/she would have loads of student loan to repay, a successful career to start, tons of financial decisions to make and lots of dreams to live for. Well, everything would become smooth and easy if they follow the below guidelines.
Remember how you achieved the academic success? I am sure it’ was due to your intellectualism and hard work. Guess what? Financial success can be achieved by exactly those two qualities you possess. Having success is a mind game, a game you play against yourself.
How often you find your financial plans difficult to adhere to? Few of us make a resolution when we start the year but very few can keep up to the plans. Same as our budgets, financial plans are also very hard to keep up with. I admit I failed miserably every time I set up a financial plan. The only way that works for me is to have automatic payments routed to retirement and other targeted accounts before money comes to my checking account. Dr. Pete Sulack is an expert in this field, I am glad to present a guest post from him today. Enjoy the post!
There is no question that your finances can be a source of stress no matter how much or little of it you have. Each year, you sit down and make your New Year’s resolutions – vows to save more money, give more to charity, or finally start to get serious about planning for retirement. By February, it’s dark and cold outside and they are running commercials for that island vacation or new sports car, and the reality sets in about how hard it might be to keep tabs on your personal finances after all. When we know what needs to be done but don’t have discipline, we often think less of ourselves and find it hard to establish a goal-nurturing environment.
“Saving to Build Wealth”, as the saying goes. But when we are young and single temptation to waste the money prevails over saving them. Schools teach us to be wiser, intelligent and good human beings. I am not sure if anywhere in this world the school system teaches how to be wiser with money. I was never taught how to best manage my finances responsibly.
Glad to present you another article on basic of financial management. Long time back I wrote about managing your money like a shepherd, which gave me immense pleasure. They I did a series of posts to state the importance of teaching monetary skills to your children. It is so much important these days when we have decreasing savings rate and growing instability in the financial market.
Earlier this year, I came across an article from the Los Angeles Times. It’s about how millennials won’t be able to get mortgages on their own and will rely on their parents to co-sign on loans and mortgages in the future. More recently, I came across this article on CNN Money – it’s also about how the student loan debt is making home ownership out-of-reach for millennials.
While home ownership is not a goal for everyone, I strongly believe that financial independence should be a goal for everyone. Unfortunately, millennials are not there yet for a number of reasons, including: no financial literacy skills, dangerous amounts of student loan debt, and not establishing credit early enough. I think starting the conversation about financial literacy early is the best way to prepare young people for financial freedom, just as about educating teenage girls about the importance of personal finance.
Investing always carries some amount of risk, whether you’re investing in stocks, bonds, real estate, or a lower-risk investment like CDs or Treasury-issued securities. When you think of investment risk, you probably think of the risk of losing some or all of your money because of a bad investment decision or a market downturn. But that’s not the only risk you face as an investor. There are some apparently harmless risks as well.
What many investors don’t realize is that if you don’t invest aggressively enough, inflation will cause your money to lose value over time. If you rely on socking money away in a savings account to get you through retirement, your future purchasing power is sure to disappoint. While you can’t avoid all investment risk, you can mitigate it by learning about the different types of investment vehicles available, developing a sound investment strategy, and letting time work its magic to help your portfolio grow.
I received very early lessons on managing finances and investment from my father. Read more on my about page. I feel teaching your children about money is an essential part of their education. Unfortunately it’s not taught in schools, so it’s your job as a parent to make them financially aware which should help them become a better at managing their finances. I had written about early financial lessons to your children and financial advice for young adults. This is a guest post from Patrick he runs the blog Daytodayfinance. Enjoy the post!
Are you parent of a teenage girl? If yes then you already know that your little girl is all set to take her own decisions and plan her future. All she needs is your guidance and advice. If you think that she is too young to manage finance then you are wrong. Teenage is the perfect time to explore all the fields of life and learn financial lessons.
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