Money cannot buy happiness! You might have heard this many times. But all things that make us happy are materialistic, and there are only a few of them that can you can achieve without money.
However, looking at a broader spectrum, people have a mixed ideology about money that might favour them or backfire to cause problems. Though there are several notions about money, here are a few financial lessons that I would like to share, which might give you a clear idea about handling money. Learn what you need to do with money, how to plan your long-term investments for high returns, and also stay away from debts. Let’s get started and discuss these one by one.
5 Money Lessons to Know Earlier
Some interesting things that I discovered, a few money lessons to know at a young age:
Little Savings Now Equals Greater Rewards Later
Okay, first things first, we all know that you want to achieve your financial dreams and wishes when you start earning. It’s more like getting what you always wanted and being satisfied. But, what to do after that? Do you spend everything and be broke by the end of the month and then wait for your next month’s salary to repeat the process?
No, don’t be that naive to not having anything in the bank. Having a proper budgeting plan is what you have to do. Try to divert your income towards the savings part. We are not telling to spend on miscellaneous items, but reduce that as much as possible for a more massive return in the long run. Even small savings over 10-20 years with annual interest from the bank can fetch considerable returns.
Say “NO” to Excess Credit Cards and Loans
Credit cards give you the potential to buy things way out of your affordability range but ultimately succumb you under insane amounts of debt. Ask any financial expert or advisor, and they would tell you to stay away from it if you have a low income.
Try paying your bills on time and avoid taking excess credit cards or any unnecessary loans. Debt is an anchor weighing on your savings, which would never let it grow. For any purchase, use cash or a debit card as you aren’t held accountable to anyone, which is a great practice.
It’s clear as daylight that you should not keep your money idle. Banks do offer some interest on a savings account, fixed deposits which could grow exponentially over a few years.
Further, put savings in other investment alternatives, like mutual funds and stocks that can benefit you at large. Never keep your money at home as there is no opportunity for it to grow. But, do consult advisors and experts before putting your money into the stock market to gain sensible returns over an extended period.
Eliminate the Habit of Overspending
We all know that money drives us crazy. It opens up a universe filled with opportunities where we can fulfill our dreams and wishes. However, no matter how much money you spend, you will never be satisfied with it.
Overspending comes when you have lost track of assessing income and segregating it correctly. Though it might give you temporary bliss, debt is inevitable through the overspending lifestyle. If you ever want to get away from this habit, get a close friend or a financial planner to assess your income and direct you on the right path. Yes, it will be challenging, but having a stable lifestyle is what everyone wants.
It’s Hard but Pays Off Substantially
All of the pointers listed above are tough but are 100% worth it no matter what. Do you want to live a life filled with debt or have a stable income, with proper investments made? The latter does sound more feasible. Right!
To achieve a lifestyle as such, you will have to put in hard work and determination to ensure that you have your financial liabilities set straight.
Within a few months of following necessary plans, putting money in the best savings account or diversifying it into well-planned investments, you will see the changes and the returns to support a great future.
Importance of Money
Money is something that you may have a lot today, and tomorrow you have less. If you wish for more financial luxury, then you need to start somewhere at least. Getting your life back on track can be achieved through sensible savings and investments.
So, it’s not late yet; you can start saving from today and reap more significant benefits in the coming days. All the best and be wise around money. It’s something that everybody wants in large amounts, but not many are capable of having.