Personal Finance have nothing to do with the money
Get Rich / / December 20, 2019
When viewed superficially, maintaining personal finances - it's all related to money: how to become richer, where to invest, and so on. All this, of course, included in the concept of personal finance. But Christine Wong (Kristin Wong) believes that in the larger, more important sense, personal finances have nothing to do with money. It is rather a problem of their use in accordance with their own values and priorities.
Learn to manage your money, and they can not control you
My father often said: "Money - it's not a problem, the problem - the lack thereof." And it is true. Of course, money can not buy happiness, but to be cramped in the media is not easy, it brings a lot of suffering. And the level of pain varies depending on the situation.
My parents had a hard time when they could barely make ends meet, and this went on for several years. They wanted to move to a better neighborhood, next to a good school, but it never happened. Of course, for some people, the situation was even worse. The study "
Poverty: Why have little means so much"Sendhil Mullainatan (Sendhil Mullainathan) and Eldar Shafir (Eldar Shafir) tell us that the lack of money affects our determination, health and even politeness.Poverty - it's not just a physical limitation. It's also a way of thinking. When poverty captures our attention, we begin to think differently. Constantly thinking about the money, we begin to notice other things, otherwise evaluate their own choices, or foresee events, in other words make decisions and behave.
Whether we like it or not, money has the power. Most of us are heavily dependent on them, and here comes to the aid of personal finance management. Personal Finance - it's all related to ability to manage moneyTo use all their strengths to their advantage. We are talking about the ability to take your money under control. Ironically it sounds, the main purpose of doing personal finances - stop thinking about money at all.
Money - it is not an end in itself, but a means of
It is easy to confuse the management of money and chase after them. Of course, it is good when the money is more than enough. But if the money - this is your ultimate goal, you conduct personal finances properly. For a long time I did it, too, is wrong.
After graduation, I wanted to travel. I had a goal: to pay off a loan to go to Europe. It was certain, specific goal, which served as a great motivator to pay off the student loan. After the trip I began to earn a little more, but I had no other financial goals. In a sense, I floated down the river, my goal was simply to accumulate money. This objective was vague and boring, because it was simply hoarding papers.
It makes no sense to save money if you do not know for what cause they need you. In my case, it's a feeling of meaninglessness resulted in the fact that I eventually stopped saving and started thoughtlessly waste. There is nothing wrong with that, but if I had a better pondered these expenses, it would be able to save up for something that really matters to me.
It took me a while to realize that the money - it is a tool, not a goal. conducting personal finances need to be addressed not in order to save as much as possible. Keeping personal finance need to use this tool in order to live the way you want.
Value for money is the only thing you can do with them. If someone's goal - to have a stash of ten million dollars, it is an empty goal. What would you like to do with this money? Put yourself on the basis of objective reasons that you need to save money rather than save up money to make money.
Lands Luke (Luke Landes), founder of the blog on personal finance Consumerism Commentary, lecturer
This quote illustrates a common misconception. People often think that doing personal finances - it means to be against spending, when in fact the opposite is true.
The money there is nothing wrong. And there's nothing wrong with what you spend most of it, if it allows you to do things that make you feel alive. It is important to have enough of them, so that you have a roof over your head and food on the table. I do not support the view that the desire to earn - it's a waste of time, especially when it allows us to survive. Just make sure that you understand why you spend. What you can see the whole picture and think through their own direction.
Colin Wright (Colin Wright), an American blogger, traveler, author of "How to become a great man"
In short, the money should not be the main objective. You do not have pants sit at work who hates to accumulate pieces of paper, and one day retire and finally relax. You must use the money so that your life was more of what you love. That means you have to save a little bit to throw the hated work and start doing something that brings you pleasure.
Personal Finance - it is more about mindset than about math
Of course, there are basic rules of finance.
- Spend less than you earn.
- To pay on loans.
- Invest the money that they bring income.
Rules are important, but they do not reveal the essence of doing personal finances. Indeed, personal finances - they are personal. This means that sometimes you can and need to break the rules and do what is right for you. More than with mathematics and rules, Personal finance related to the behavior: your habits, thinking and acting.
I can even argue that the need to put more focus on his behavior than rules. You can read about the best ways to repay the loan, but if you are serious, most of all, and do not do this.
People often do not engage in the conduct of their finances because they supposedly do not care about money. But, oddly enough, for this reason, they should do it. If you do not like to think about money, the best way to do this - to be sure that you have created a system of proper management. Yes, to engage in personal finance - means to borrow money. We must learn to control them, to focus on those aspects of life that are of interest to you.