Do What You Want With Your Money. Think Differently. Act Differently.
You have to be sure of what is important to you.
Not everyone is doing the right thing with money.
When it comes to managing your personal finances and planning your way to the great financial freedom that everyone dreams of, most people start by planning and budgeting.
You start thinking about how to get out of debt, how to increase your income, and how much you need to invest to ensure a decent retirement.
These are all very important topics and I write about them all the time, but there is one thing you must do before you start planning all this.
That is the thinking. You have to be sure of what is important to you.
Spending Without Thinking Twice Is Being An Idiot With Money
People often talk about how to avoid unnecessary spending and save even more.
For you, something may be a waste of money. For someone else, it is not. It is an investment. I spend a lot of money on cosmetics to take care of my long hair. Some prefer to cut hair. It’s about what is really important for you.
These days, many times you see something with friends or neighbors and think you need it, but why?
Many times I have seen people around me buy a newer, more expensive Mustang just because a friend or colleague owns it. Others because that car attracts pretty women. What an idiotic thought.
These people don’t think about what they will use the big car for and whether a cheaper version might not be enough.
If you are not sure what is important to you personally, it is difficult to make the right buying decisions and sometimes to say no to unimportant things.
In my apartment, there are tons of things that I don’t care about and rarely use. I now regret many of my purchases because I would have preferred to invest the money in something that is important to me or I would have liked to invest it to increase my wealth.
If you are clear about what is really important to you before you create your financial plan, you are less likely to spend money on unimportant things.
This also makes it easier to decide where you want to save and can live the life you want and not what others live.
Focus Only On What Matters
When you are sure of what is important to you in life, you can create a better financial plan that will give you a better chance of achieving your goals.
Think about what you want to achieve.
Do you want to take a 3-year trip around the world, retire at 44, or just get out of debt? Do you want to take a big trip with your family every year or buy a house in Los Angeles?
Prioritize your goals based on their importance to you and your life and set a time limit.
Some goals, like early retirement, have a 30-year time frame to achieve, others only 4 years or even a few months.
Now create your plan and act soon to achieve those goals.
When your plan is in place, it is easier to avoid unimportant things and save your money for the really important things in your life.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.