I’m sure you’ve heard the saying that money doesn’t make you happy. But what if I told you that it does? What if I told you that there are thousands of people out there who have more than enough money yet still feel depressed? Well, it’s true! There are actually thousands of people in this world who would rather be poor than rich because they’re afraid of having too much money or being called a fool for having so much cash on hand. So how do we stop being financial fools? Simple: don’t spend more than your monthly income allows!
TOP PERSONAL FINANCE BEST PRACTICES
- Stop spending more than you make.
- Start putting money away for things you want, instead of buying them now and hoping they will still be around tomorrow.
- If you can’t pay it off in 30 days, don’t buy it…unless its a home or car!
- Save up for things you want instead of putting them on credit cards.
- Do research before you make any big purchases.
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#1 – Stop spending more than you make.
The biggest financial mistake people make is spending more than they earn. You need to stop spending more than you make and start saving. It’s not about being a monk, but it does help if you plan ahead for your future needs so that when the time comes, there will be money for them.
For example: If someone has 10 Lakh in savings and wants another car because their current one is broken down (or whatever), then buying new wheels would be an unnecessary expense since they have such low income at this point in time (assuming they are living on their own). Instead of buying that new car now with all its bells and whistles while paying off debt at 0% interest rate, why not wait until later when things are looking better?
#2 – Start putting money away for things you want.
If you want to start saving money, don’t wait until you have a lot of it. You can start by putting away 500 or 1000 each week and making it a habit.
If you’re afraid of losing your job or not being able to pay bills, don’t be! This is the time when you need to start thinking about what kind of future you want for yourself and how much money will help get there.
#3 – If you can’t pay it off in 30 days, don’t buy it…unless its a home or car!
If you can’t pay off your credit card debt in 30 days, don’t buy anything.
Even if it is a house or car!
If you’re making minimum payments on your credit cards and not keeping up with interest payments, then don’t buy anything. You’ll just be sending extra money to the bank each month that they will use as profit from their lending practices (and/or by charging higher interest rates). This means more money for them but means less money for YOU because you have less money left over after paying off whatever debt was charged against it!
So instead of giving all of your hard-earned cash straight into someone else’s pockets, try learning how to budget better so that even if something unexpected happens (like losing a job), there will still be enough money left over at the end of each month.
#4 – Save up for things you want instead of putting them on credit cards.
The financial industry has created a culture of debt and credit cards. You can’t afford to buy that new car? No problem! Just take out another loan! Want to get your kids into college? Buy them some nice clothes and jewelry.
The truth is, if you’re going to use credit cards, you should do so sparingly—if at all. Credit cards are not good ways of saving money because they don’t offer any kind of interest-free period; instead, they charge interest rates that can be as high as 20%-40%. So save for things how our mothers and grand mothers used to do!
#5 – Do research before you make any big purchases.Â
If you’re buying something online, it’s easy to go directly from one website to another and make a purchase without reading reviews or asking questions about how things work. But when it comes time for your next car purchase, consider doing some research on what makes this particular brand different from others in its class or industry segment before making an ultimate decision as well as finding out all that needs done once your new ride arrives at home (or wherever).
Takeaway: Remember that saving is much more important than spending and that’s how the rich get richer!!
If you want to be rich, it’s not enough to just save more than you spend. You have to invest in things that give you a return and then hold on tight while they grow. That’s why we’re here!
We want people like us who are smart enough to know what they need and smart enough not do anything crazy with their money. We don’t want them investing in companies that go bankrupt or get robbed by thieves, so we teach them how much better off those investments will make them over time (and how much easier it is).
But even if someone does something wrong with their money—like buying things on credit—don’t worry: there are ways around this problem too!
Conclusion
You don’t have to be rich or financially stable overnight. It takes time and patience. But if you follow these best practices, you’ll soon see your finances improve for the better!