Unfortunately most people are very bad with money, this because you know how to buy an ice cream doesn't mean you know how to deal with money, in fact Most people have no idea about basic principles of money - such as inflation or paying yourself first (saving money)! If people were really good with money, almost 80 % of Americans would not live pay check to pay-check. In other words, these people have only one source of income (job), and if they get fired, they probably will be homeless!
Thats why here in this article we will talk about 4 things you should never do with you money, if you want to be financially free!
1-Never let people know that you have money!!
When people realise that you have money, suddenly everyone needs a small loan, and after giving a couple of small loans, you realise that you have already lost few thousand dollars, but the bigger problem is that people rarely pay them back.
It might sound selfish, but the reality is that no one cares about your future, or your financial independance, even your best friends, because everyone is busy thinking about themselves.
You don't have to be rude to people or lie about your financial situations, just keep a low profile when it comes to money, don't brag about how much money you make, or post an instagram picture with loads of cash!!
2-Never start spending before you have a plan
When i was in college, my friends constantly use to complain that by the end of the month there are out of money, and they have no idea where the heck they spent it all...thats exactly what happens when you spend recklessly.
If you are living pay check to pay check and you don't have a spending plan, then you must forget about financial freedom...you will never achieve that!
Financial freedom starts with learning how to plan and spend your money in sush a way that you can save most of your income, so that you can start investing!
The first thing you have to do when you are paid is to put aside at least 10% of your income as if it wasn't there in the first place, and completely forget about, and no matter what happens, you can't use that money.
Than make sure you plan the rest of your income to last you till the end of the month, and most importantly, make sure you stick to this plan!
3-Stop wasting your money on stupid things!
What i still don't understand about some people is that, why would you waste 3 or 5$ every morning on that cup of coffee from Starbucks when you are living pay check to pay check, over the course of a month, thats going to be around 100$ and over the year that will be 1.2k$ already, enough money to make some investments.
You might look cool by walking around with that cup, but it just doesn't worth it...exactly like that brand new flat screen TV you bought.
We all have some bad spending habits," we buy things we don't need with money we don't have to impress people we don't know", then we try to find a quick way to get rich!
Why don't you first stop waisting your money on stupid things, then you will probably will have money to invest...like "Warren Buffett" said "if you buy things you don't need, soon you will sell things that you need".
4-Spend less on things that depreciate
The problem with the most of the things we buy is that they depreciated over time.
That brand new car you bought just last year already lost almost half of its value, even it's in a perfect condition.
Unfortunately, most of the things we buy constantly loose value weather it's your phone, computer you name it, of course it's impossible to completely avoid that, but at least we can reduce it and instead spend our money on things that increase in value over time such as a house.
Even if you do absolutely nothing, your house will still make you a little bit wealtheir every day, but not everyone can affrod that, thats why, it should not necessarily be a real estate, it could be an ounce of gold, a stock, a bond or any other kind of investment because thats what will keep making you rich!
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