Some financial lessons you should know
Some financial lessons you should know
It is normal that as kids we don't care so much about our finances, due to certain situations, maybe you lived with a privileged family that gave you everything you wanted, others however, we were not so lucky.
Well that doesn't matter as you grow up and have to become independent, look for a job and do all these boring things of adult life, you must learn to manage your finances well, as I'm sure you don't want to be broke.
It takes a lot of time and discipline to have healthy personal finances, I'm not going to lie, it's not something that is going to happen by magic, not overnight, no. You must manage your money wisely. You must manage your money wisely. Maybe it's because not many people are instructed on how to manage our finances, at least no one taught me.
Make and follow your budget
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This is something basic and yet many people can't control or follow. Making a weekly, bi-weekly or monthly budget will give you an idea of where your money may be getting diluted.
Not everyone has the discipline to make a budget and follow it through, phrases like "this is what I work for" "I deserve it" are heard from most young people when they are about to spend their money foolishly. If you create a budget, stick to it no matter what cravings may occur to you, be disciplined and smart and don't spend more than you have allotted.
Save and invest
This is true no matter from which angle you look at it. If you have a steady monthly income, you should allocate a percentage of it to basic, fixed and variable utility expenses, and you should also allocate a percentage to savings and investment.
We who are involved in the world of cryptocurrencies usually say that investment is much better than saving, I will not contradict that, however as part of a healthy personal finances it is always advisable to allocate a percentage of our income to savings especially if it is for the medium term.
Don't get into debt
This is the worst thing you can do, getting into debt will not bring you any benefit and will only bring problems and stress to your life, I have seen and experienced firsthand the consequences of debt and believe me it is nothing nice or what I like to talk about.
Run away from credit cards and mortgages or loans that many people make for no reason. No, being in debt is not something normal or advisable, there are those who spend a lifetime working to pay off a debt, I do not think that is a healthy or fulfilling life.
An emergency fund
Emergencies can happen without warning, in fact they happen without warning, that's why they are emergencies. If you don't have an emergency fund you may have to dip into your savings or even worse, debt or credit cards, don't do it.
Make a plan and a strategy so that when an emergency arises you can cover any expense and it will not affect your finances so much.
Well these are some recommendations to keep your finances more or less healthy, if you know some more please write them in the comments.
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