The Best Personal Finance Tips I Learned

by John Smith Learner

As the year comes to an end, people (including me) once again make resolutions to make the next year better than this year. The two most common decisions are related to physical fitness and financial fitness. Most of us have goals to lose weight and reduce debt (increase savings, etc.). The fitness aspect of our decision usually means eating less and exercising more. The way it works is simple. The key is to start, or as this famous sportswear company slogan says: "Just Do It".

For our personal finance, it's a little different. It doesn't have to be complicated. I (along with my wife) have put these principles into practice to the best of my ability through investing, investing in real estate, eliminating credit debt, building cash flow, etc. As a samurai warrior or a Spartan warrior has a code of conduct (or bushido code), it is effective to follow the principles we must apply to our personal finances. Here are some:

Never take financial advice from someone who earns less than you. This may sound harsh. But would you go to a plumber for medical help? (or vice versa) Although they may be the best plumbers in the world, it is useful to seek medical advice or treatment from a medical professional (such as a doctor). Why avoid taking financial advice from broke people? You don't have to avoid them. You can (and should) still do other things with these people, like play golf or watch movies.

Do not borrow money from anyone, especially relatives. Except for buying a house (which you can save for), you don't need to take out a loan or use credit. Now it is especially important to remember this principle when borrowing from relatives. Don't lend or borrow money from your dearest relatives unless you want to change or damage that relationship. Remember: the borrower is in servitude to the lender. Money is important, but it is like fire. It can heat up or burn down the house. Borrowing or lending to relatives will burn that relationship.

Use cash. I look for low rates (or zero interest rates) before trying to play credit. The best bet in the long run (or anyway) is cash. Using cash has an "emotional effect" on him. You will hesitate before making a purchase. This frequency is known as the "voice of reason". This is exactly what we need in our personal finances.

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About John Smith Senior   Learner

147 connections, 8 recommendations, 639 honor points.
Joined APSense since, February 15th, 2018, From New York, United States.

Created on Dec 9th 2022 00:38. Viewed 118 times.


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