They say saving or investing is not a rocket science that only a few can understand. But it seems like not everyone is capable of learning this thing at an early phase of their life. What our culture taught us about “YOLO” is living life to the “FOOLEST”, spending all you’ve got and partying like there’s no tomorrow. That’s the reason why I think people at an early age are going broke and having a hard time to back-up.But how are you going to get back on the right track if you’re living pay check to pay check? The truth is, regardless of the amount you earn, you might unconsciously create these following impediments to financial success:
- You spend imprudently
You spend too much to the extent that you’re already living beyond your means. Can you give logical reasons why you need to buy a new gadget even if your old one can still be used efficiently? Is there really a rational need to impress others with your new and expensive things? Kahit na mabaon ka sa utang okay lang basta magmukha ka lang mayaman ganon? Consistently spending more than you earn is the easiest route to accumulate debt, and the major recipe to being broke. To stay out of debt, you‘ll either need to find a way to earn more or spend less.
- You save a little or not at all!
Because of your overspending habits, you forgot to save primarily because you’ve got no more money to put aside in the first place. Can you look into your savings account now and check if you have sufficient amount of money to use when an emergency occurs? If it doesn’t reach at least 3 months of your monthly expenses then you might want to consider building your emergency fund as early as NOW. Always keep in mind that unexpected events are expected to happen, we just don’t know when but it will surely come. Once you have already built your emergency fund then you can proceed to saving for your life goals.
- You’ve got too much debt
Too much that it has become higher than your monthly income! Every time you use that plastic card foolishly, you’re digging yourself a debt hole! And when your debts have become too big to handle, you become accustomed to only pay the minimum amount which consequently results in paying the penalties and other interest charges.
- You don’t PAY YOURSELF first!
You ignore the fact that someday you will retire from work! Well, I understand that it’s easy to focus on the present and believe that you always have the time to save for retirement. But it will never happen if you keep on saying that on the next payday! The best time to act is NOW. Remember that the first bill you pay each cut off should be to yourself!
- You travel a lot, even if you can’t afford
I looooove to travel, who doesn’t like to? But if your budget will get affected because of too much expense on your getaways to the point that you already need to borrow money just to reach the next payday alive then there’s something wrong already. You don’t sacrifice your budget just to keep up with your friends! I’ve read, some are saying that we should travel while we’re young because it might be hard to do it when we get old which I think is a valid argument, but if you don’t budget your money now then your future old “You” will probably suffer a lot.
- You invest in depreciating stuff!
7. You don’t invest in yourself!
You waste your time on senseless things! You no longer try to discover or learn new things because you focus too much on how to live life to the “FOOLEST”. If you don’t invest in continuing education or personal development then you’re preventing your ability to be successful and make more money in the future. Your most valuable asset is yourself! So be a lifelong learner!
8. You think rich people are evil
Some people think that being rich is equally related to being evil which I believe is totally wrong. I have met rich people who are kind and generous and some poor people who act the same. Having money does not make one an evil person, and having none doesn’t make you good. It’s the love of money that makes the person evil. It’s about what we do with what we’ve got! Are we using it to do wicked things? Or are we using it to help the less fortunate people? As what Dave Ramsey said, “Money is amoral. It doesn’t have morals. It’s not good and it’s not bad. It’s the love of money that’s the problem – and that’s a human problem, not a money problem.”
You should realize that you don’t need some fortune to become financially stable. It only takes a little bit of knowledge, hard work and a lot of discipline to reach your financial goals. You should know by now that you’re responsible for your future! The process might not be easy as the concepts because money is not just about the math; it’s about our behavior.