If you have a great financial advice that works so fine for you, kindly share so we can learn— well, so I can learn from it.
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If you have a great financial advice that works so fine for you, kindly share so we can learn— well, so I can learn from it.
For me, the best financial advice I’ve gotten is to spend less than I make. Now, the goal isn’t to just get by but to set yourself up where you’ll be financially comfortable when you retire. This means that not only should you spend less than you make but you should have enough left over to fund your future lifestyle. This means that even if you’re spending less than you make, if you don’t have much saved up at the end of the month, you’re still spending too much. With the core advice in mind of spending less than you make but also have enough left over to fund your future lifestyle, you can begin to make decisions that can move you closer in that desired outcome. You can create a budget and stick to it. This could mean moving to a cheaper city or state or even country. Doing this also allows you to spend without feeling guilty. Say you did the math and figured out that you need to save 15% of your income in order to live comfortably later on in life. If that’s the case, once you saved that 15% and all of your monthly expenses are paid off, you can spend whatever you have left over without the guilt of feeling like you’re sacrificing your future for instant gratification purchases.
Unless you’re spending money on things that will make you money, if you’re always spending more than you make, although you might be okay for now, your retirement years are going to suck.
This was when I was a child, before I even started making money. When I did get money, it was maybe $5 for shoveling snow. This meant that when I entered the work force, I never bought What I didn’t need it, and I wanted to save up for that “thing” even though I didn’t know what it was yet. I made sure to budget for mortgage payments, bills, etc. that would never surpass my income, even if interest rates go up. Despite the bank telling me that I could afford a mortgage that is $100k more, I decided to set a limit so that I could finish paying it off and still have time to save before retirement. I am a bit surprised a few years later to learn that I am on track to pay off my mortgage by the time I am 35 years old.