Valuable Personal Finance Tips

No matter who you are or what you believe, we live in a world where having more money entails a better quality of life for both yourself and the people you care about. Of course, staying healthy, building and nurturing relationships, and many others are also essential to happiness. Yet, all things being equal, a person with a deeper pool of financial resources will not only have more stability and greater peace of mind than one with less, but he will also be able to enjoy more of the things this world has to offer.

The key, therefore, lies in finding ways to either grow your finances or at least keep them stable and prevent them from diminishing long-term. In addition, it is about making the right investments at the right time, investments that will yield the best possible results with a minimal amount of risk.

But how does one do it? If it were such a straightforward process, wouldn’t everybody already be rich? While these and others are all valid questions, there are still certain things you can do to ensure the money you have now will last for the entirety of your life. Whether you have a housing loan you need to take care of, your children’s education to cover for, or a credit card to pay, there are steps we can all take to make better choices as it pertains to the money we have and spend.  

Here are some of the most important ones:

The Man in the Mirror

Most things in life you cannot control. Regardless of how much climatological technology has developed, forecasting the weather remains a hit-or-miss game where pretty much nobody is ever right. You cannot oversee nor manage the spread of a disease like the covid-19 global pandemic. All you can do is deal with it as much as you can and hope for the best. And, most importantly, you cannot govern those around you and the actions they take. But you can control yourself and your decisions, at least in part. That is something we can all do. 

Because of this, one of the best investments you can make for better finances is not stocks, government bonds, or mutual funds. Rather, it is in yourself. An example is investing in your own education and the acquisition of knowledge. You can also invest in your health or learn a new language. You can invest in building long-lasting, fruitful relationships with like-minded individuals. And while they won’t necessarily make you money right away, they will give you the tools to get it, not to mention save you from spending more of it in the future on things like medical bills and costly procedures.

The Longer You Have to Wait 

saving money

One of the many things that differentiate us from all other animal species is the value we place on things based on emotion and the circumstances behind them. Whether a hungry lion has to fight for his food or it is given to him, he will enjoy it all the same. And once he’s full, he will go to sleep. 

But we humans are different. For reasons unknown, we tend to take the things we get easily for granted and leave them to waste. On the other hand, if we have to sweat for something we want and put in the effort and time to get it, we will value it much more and protect it.

The same is true when it comes to money. If we work for months to buy that new TV or computer instead of buying it with a credit card, the benefit is two-fold. Not only will we not be incurring unnecessary debt, but we will also appreciate it that much more. Keep in mind that cravings are not emergencies and, with a bit of patience, most of them just simply go away.

Being Realistic

Comparing ourselves to others never works. Arguably the biggest reason is that there will always be someone who has more or is doing better than us and another person who has less or is doing worse. Thus, we should focus on our own lives and the current situation we are in. 

In terms of money, this means accepting what we have and living within our means. If we cannot buy a Ferrari, we cannot buy a Ferrari. But that doesn’t mean we cannot buy any car or a cheaper vehicle won’t give us happiness. It also doesn’t mean we cannot improve, and we will never be able to afford it. Oftentimes, the more realistic you are about your financial capabilities, the better decisions you will make. 

If you want your finances to grow, invest in yourself and be patient with what you buy. Finally, keep a realistic mindset to the current status of your financial life. These are all things we can do to optimize our chances of greater stability in our lives.

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