Five lessons in personal finance you must never forget.1. Don’t be lured into shady investmentsOne of the biggest reasons for the repeated success of swindlers has been Human Greed. As long as we have a get-rich-quick mentality, we have a good chance of becoming a victim to some kind of a financial fraud. There is no short-cut to becoming rich.
No one can give you returns which are not in line with the market reality. If for some reason such an opportunity does exist, why would someone tell you about it? Won’t he himself beg, borrow or steal to invest in the so-called ‘golden’ opportunity? Why should someone hand over to you the formula to becoming rich, while he himself is happy with measly commission? Think!!
2. Don’t believe in verbal promisesAlways remember - ‘If it’s not written, it’s not true’. This mantra will save you a lot of trouble not only in your investments but also in many other things in life.
If a person or a company is unwilling to put any of its’ promises on paper, there is high probability that it has no intention to honour it. Of course this doesn’t mean that the opposite is true – that a person/company will not go back on his written word. But the chances are lower as he can then be legally held responsible and face punishment in the court of law.
3. Budgets are not meant to ‘tie’ you down. Having a budget is something like kite flying. The purpose of the thread is not to prevent the kite from flying, but to make the kite to fly with some direction and within some limits. In fact, without the thread the kite cannot fly far or fly high or fly for too long.
Budgets give you a defined economic freedom; it is not a financial restriction.
4. Avoid getting debt-trappedThe dress you bought on credit card is probably already worn out and discarded, while you are still paying the debt. Your foreign junket is history, but the debt remains with you to haunt you for years to come. Think about it! Is it worth it?
Therefore, make a commitment today to work towards becoming debt-free. It’s going to be tough ride. But it is a short-term pain to long term peace and prosperity. We owe it to our family and children. The earlier we start the better it is.
Instead of keeping up with the Jones’ in your neighbourhood, why not become an example for those Jones’ to keep up with your debt-free status. Believe me it will more fun.
5. Always keep some cash handyThese are highly uncertain times. Job loss, accident, natural disaster, medical emergency, car/computer breakdown and many such events can happen to anyone, anytime. And such unfortunate incidents, which may require a fairly large amount of money, can upset our financial balance.
Having adequate money handy for meeting such unforeseen, irregular and unexpected expenses- spares us the mental agony of arranging money at a very short notice- protects our long-term investment corpus from such shocks and- gives us time to realign the long-term finances in line with the new financial realities, if need be.
No one can give you returns which are not in line with the market reality. If for some reason such an opportunity does exist, why would someone tell you about it? Won’t he himself beg, borrow or steal to invest in the so-called ‘golden’ opportunity? Why should someone hand over to you the formula to becoming rich, while he himself is happy with measly commission? Think!!
2. Don’t believe in verbal promisesAlways remember - ‘If it’s not written, it’s not true’. This mantra will save you a lot of trouble not only in your investments but also in many other things in life.
If a person or a company is unwilling to put any of its’ promises on paper, there is high probability that it has no intention to honour it. Of course this doesn’t mean that the opposite is true – that a person/company will not go back on his written word. But the chances are lower as he can then be legally held responsible and face punishment in the court of law.
3. Budgets are not meant to ‘tie’ you down. Having a budget is something like kite flying. The purpose of the thread is not to prevent the kite from flying, but to make the kite to fly with some direction and within some limits. In fact, without the thread the kite cannot fly far or fly high or fly for too long.
Budgets give you a defined economic freedom; it is not a financial restriction.
4. Avoid getting debt-trappedThe dress you bought on credit card is probably already worn out and discarded, while you are still paying the debt. Your foreign junket is history, but the debt remains with you to haunt you for years to come. Think about it! Is it worth it?
Therefore, make a commitment today to work towards becoming debt-free. It’s going to be tough ride. But it is a short-term pain to long term peace and prosperity. We owe it to our family and children. The earlier we start the better it is.
Instead of keeping up with the Jones’ in your neighbourhood, why not become an example for those Jones’ to keep up with your debt-free status. Believe me it will more fun.
5. Always keep some cash handyThese are highly uncertain times. Job loss, accident, natural disaster, medical emergency, car/computer breakdown and many such events can happen to anyone, anytime. And such unfortunate incidents, which may require a fairly large amount of money, can upset our financial balance.
Having adequate money handy for meeting such unforeseen, irregular and unexpected expenses- spares us the mental agony of arranging money at a very short notice- protects our long-term investment corpus from such shocks and- gives us time to realign the long-term finances in line with the new financial realities, if need be.
Source:-http://www.wealtharchitects.in/
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