The Best Personal Finance Tips I Learnedby 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.
Created on Dec 9th 2022 00:38. Viewed 118 times.