Personal finance can be defined by three words: Manage Your Money.
This post, is my own approach to money. Not some random research to produce an article swimming like a duck in a pond. I am not a rich kid, but I can honestly assess that I can manage where the coins and papers are going.
For all those people advocating finance to serve people: Peace and Love ya’ll.
For all those people advocating finance to steal people’s money: Fuck you.
There is one interesting subject in finance that is in my humble embarrassing opinion that people all need to understand. That is Liquidity Risk. That is the ability for your assets to be traded in advantage for required profit.
I think this applies to almost anything: If your car(or whatever it is you are selling, your skill, your presentation, idea or anything) is crappy enough that you cannot sell it fast to make a good mark-up profit, you lose.
Wow, so where are we? Finance? Personal? Don’t mess with my purse, as others can say.
With all those consultants willing to make an appointment with you, check first if you really have that much of money to take care of. If you can LITERALLY COUNT your money, like you memorize what is in your bank account and the number of shares you have with stock portfolio then you do not really need a consultant. For real.
For me, friends are your greatest advisers. They know when you suck or doing the wrong tunes, and they know when you are doing the right things.
This is probably a confirmation bias: Personal finance consultants are mostly for people with no great friends they can model themselves with.
So! These three tips will make you awesome in approach to money. This is not a guarantee as we have different spending habits and reward systems. But this is a real deal. Whatever.
Forget the Wallet
Huh? Where the heck that idea came from? None. I practice this myself, I only use steel paper holders and my bag for the coins changes.
All I suspect is that wallets are made to give society the illusion they have lots of doughs. The reality is that you have to figure out what to save and spend before you can reflect how much money you have.
Lose the wallet. Why? Because wallets make you spend stuff more than necessary.
Wallets trick you to believe you have a money container in your pocket. I’ve been there with a feeling that I have enough with me even though few is really all I have.
Contrast that with steel money clips or just a pocket to have your money,and you will feel literally you are spending stuff every now and then. Having “to lose it or have it” kind of situation makes you alert and think twice in every purchase you make.
Less with the Coins
What the heck again? The coins….They are great for instant purchase! This, in an instant, buy you a token for your favorite arcade game, a chocolate you habitually want, and so on. Guess what? You wonder why your money is so hard to trace, hard to remember where you spend it. That’s because you have your coins with you.
Now what approach? Use less coins. Coins can be stored, deposited in a bank, for generosity or reserved for better use.
In normal life, you usually don’t mind thinking about every small purchase. To do that is a recipe for being miserable. You do not count all that. By being a less user of coins and more on paper, you will be extra mindful that your resources are finite.(Because, it is faster to notice you lose money in papers.)
In result, you will buy in bulks and maximize what you have. You will think of longer, and smarter ways of spending.
Because these are not coins baby, those are papers that are at stake, to be burned well.
Buy Expensive Stuff
Many people advocate you to save money for future expenses. What if you can make a twist? That is to invest and buy for the quality in the first place. Placing a high premium in stuff you normally use. That means you buy for the long haul, for the long grind.
I bought a set of shirts and shoes that is way expensive than normal, they all look good and new after a year and still looks fine even in weekends. That is the cost per year of maintenance. You know the saying? Buy the Best, Cry Once. Favor high qualities, buy for packages, share costs with your friends and so on. Purchases that will cost you less for the long run.
So what do we got here?
Being content with what you have is the first step in being financially independent. Lessening your dependencies on many things, to do that requires you re-evaluate your priorities about what you really want. Take a little look closer, you really need less money than you know.
Treat money as a way to give you more choices. Not to buy chains that will make you harder to move.(Those damn, checkouts, leaving you air-headed like:”I have this X thing, so what?” something like that.) Buy for freedom, for opportunities. Invest in education. Move forward.
Do not believe all those crocodiles telling you that you only have one life, and you cannot bring your money to the grave. Maybe that statement is reserved for terrorist, those people who plans to die or for people with suicidal thoughts. Because you only have one mind, you better use it to learn more wise quotes.
Kidding aside, learn as much as possible. You can ignore this post and read more, so you can weigh things down and treat matters in a lively different frame of view.
The things is that whoever and wherever you are, you have to take control of your money, at some point or another.
Whether you like it or not, you have to sustain your pace of doing stuff, and to do that means a sound understanding on what is going in and out of your pocket. Unless you earn 100 dollars per second, this post is all a joke to you.
Managing your finances is a critical lifetime skill. You can practice this. This is boring, I know. But when you see on certain day, that figures coming up like a wild geyser in your account, the fun begins.