Society Wants You to Do Something Stupid with Your Money. Say No
You can go broke fast
I grew up poor.
My parents had to cut costs everywhere. Often there was no money left for vacations.
I was given my older brother’s clothes. Sometimes I would wear my sisters’ blouses.
Later, my parents had more money.
However, they made a mistake (which happens to many families) with mortgages that were too big.
So I am worried about money.
My mother went into depression when the money was not enough at the end of the month. Shock has been with me since childhood.
I get anxious every time I have to spend money, even though I have a large deposit. Actually, I shouldn’t have this fear. I have them though.
Based on my experience, I am probably quicker to see people make stupid decisions about the money.
I’m afraid of making the same mistakes. I’m afraid of going back and starting over.
You can go broke fast
One or two stupid decisions can lead to this.
I have come to accept that experiences are worth spending money on. Instead of things (car, fashion, expensive hotels, furniture) I prefer to give up my wallet for museum visits, excursions, family, sports, etc.
A vacation with my feet on the ground. A long walk with my better half. A bicycle trip.
My point: Don’t be cheap on experiences. Better save on junk. And don’t do anything stupid with your income.
Don’t buy super sexy real estate. If you have a monster mortgage, you can suddenly have a negative investment. All it takes is a correction in the real estate market by 20%, and then some problems will arise. Even emotions can frustrate you.
So stay away from excessive debt. I have seen people go bankrupt. It is an emotional wreck.
You should never allow yourself to be tempted to consume by advertising, media, friends, or co-workers
You care about good education. Make an effort at work. You keep your expenses under control. You pay off your debt on time.
You sell your car if you can.
If you buy a car, it should not cost more than 20% of your annual salary. A person earning $50,000 should not spend more than $10,000 on a car.
Distinguish between what you “want” and what you “need” when it comes to your costs.
Try living in a cheap rental property rather than an expensive one. Almost nothing speaks against shared apartments. If you are young, this is not really a problem.
I liked living in the shared apartments. We often traveled together. Vacations, excursions, free time. The social component is great. You can learn from each other.
Stay away from subliminal messages.
Forget about people or advertising messages that tell you: If you buy this product (like a nice Porche), you will become the big one among the ladies and their friends.
You don’t need a new car to get to work smoothly. It is a figment of the imagination that people like to spread around.
Nobody needs to follow these fashion trends
You don’t need a drone to make beautiful videos for Youtube. These flying toys break quickly. They fly into the wall, the tree, or fall into the water.
You don’t need to go to expensive gyms to get fit. You can take your bike instead. Lift weights in your basement. You don’t need to take $100, Pilates classes.
Always make the distinction between what you “want” and what you “need”.
Cook at home instead of running to expensive restaurants in the city. Some use the shopping spree as a form of therapy (this is silly, just my point of view).
Nature is best suited for relaxation. A walk in the forest works wonders. Even a short stay in nature reduces stress, increases self-confidence, and strengthens the immune system.
Always keep freedom in mind in everything you do.
Don’t let someone else rule your life. Not your co-workers or neighbors. Live your life.
Don’t even try to show off with brands (status symbols). It is ridiculous when people come to work in ridiculously expensive cars and are actually heavily in debt. These people are clowns.
Start saving when you are young. Money then has 30 years to grow. A treasure of gold will grow over the decades.
Basically, you would rather spend your money on experiences (excursion, campfire, hiking) than on things (car, furniture, clothes, art, jewelry…).
The money mentality is crucial
What really speaks against building a solid financial cushion?
You are maybe 24 years old.
You have a portfolio with mutual funds and simple funds running on a savings plan. Your goal is to quickly reach a deposit balance of $100,000.
Sometimes it is a long and difficult journey.
But you will make it.
Maybe by the time you are 30, you will have made it. The next step is perhaps to buy a house. Pay off your mortgage as soon as possible. Continue to save in your portfolio of stocks and funds.
Why not?
Saving is sensible. Those who live responsibly do so; this approach creates strong personalities.
The attitude toward money is important.
I know a couple who have had a mortgage for 20 years that they have barely paid off. You carry the $150,000 with you like a log on your leg.
Then you hear that they have earned over $100,000 a year for the last five years.
You wonder, “Why don’t they at least pay off their mortgage a little faster?”
In the last ten years, they have earned over $80,000. Someone asked him, “How long do you intend to pay off the mortgage?” They replied, “We can’t afford to eliminate them any faster. It takes time.” Right, but you know they are in the restaurant all the time.
A house with no debt would be more important to me. But people have different priorities. The mentality is different.
Nature, Sports, family are better than useless consumption
I just want to live my life.
I want to enjoy the beauty of this vast world. I don’t want to agonize with materialism all my life.
I don’t want to wander around the malls or spend hours shopping on Amazon. I don’t want to get lost in an IKEA store.
I am tired of buying junk.
I do a lot of sports.
I changed my diet to “healthy. I read, study, travel. I write a blog. It is my story.
I saved some money. I have little. But in return the freedom to do what I like. I can go to the mountains or to a lake. I can walk, relax, run, dream.
This article can be summed up in this way: being good with money is more than spending less or earning more, it is saying “No” to social pressure.