One of the fascinating things I found about people is that, everyone thinks that he knows
everything about money!
If you dare to teach or advice someone on how to take a better care of their money,
you will most hear this -
Its my money and I know how to take care of it!
Thats true to certain extend, but unfortunately most people are really bad with money.
Just because you know how to buy an ice-cream, doesn’t means you know how to deal with
money.
In fact most people have no idea about basic principles of money - such as inflation or
paying yourself first!
If people were really good with money, almost 80 percent of Americans would not live pay
check to pay-check.
In other words, these people have only 1 source of income, and if they get fired, they probably
will be homeless!
Thats why here in this video we will talk about 4 things you should never do with you
money, if you want to be financially free!
First, Never let people know that you have money
When people realize that you have money, suddenly everyone needs a small loan, and after giving
couple of small loans, you realize that you have already lost few thousand dollars, but
the bigger problem is that, people rarely pay them back.
It might sound selfish, but the reality is that, no one cares about your future, no one
is thinking about your financial independence, even your best friends, because everyone is
busy thinking about themselves.
You don't have to be rude to people or lie about your financial situation, just keep
a low profile when it comes to money, don't brag about how much money you make, or post
an instagram picture with loads of cash.
2.
Second, Never start spending before you have a plan
when I was in college, my friends constantly use to complain that by the end of the month
they are out of money and they have no idea where the heck they spent it all.
Thats exactly what happens when you spend recklessly, if you are living pay check to
pay check and you don't have a spending plan, then you must forget about financial freedom,
you will never achieve it!
Because financial freedom starts with learning how to plan and spend your money in such a
way that you can save most of your income, so that you can start investing!
The first thing you have to do when you are paid is put aside at least 10% of your income
as if it wasn’t there in the first place, and completely forget about, and no matter
what happens, you cant use that money.
Then make sure you plan the rest of your income to last you till the end of the month, and
most importantly, make sure you stick to your plan!
3.
Thirdly, Stop wasting your money on stupid things
What I still don't understand about some people is that, why would you waste 3 or 4 dollars
every morning on that cup of coffee from Starbucks when you are living pay check to pay check.
Over the course of a month, thats going to be around 100 bucks and over the year that
will be 1200 dollars already, enough money to make some investments.
You might look cool by walking around with that cup, but it just doesn’t worth it!
Exactly like that brand new flat screen tv you bought.
We all have some bad spending habits, we buy things we don’t need with money we don’t
have, to impress people we don’t know.
Then we try to find a quick way to get rich!
Why don’t you first stop waisting your money on stupid things, then you will probably will
have money to invest!
4.
And that drives me to the next point - spend less on things that depreciates
The problem with the most of the things we buy is that they depreciated over time.
That brand new car you bought just last year already lost almost half of its value, even
if its in a perfect condition.
Unfortunately, Most of the things we buy constantly loose value weather its your phone, computer
you name it!
Of course its impossible to completely avoid that, but at least we can reduce it and instead
spend our money on things that increase in value over time such as a house.
Even if you do absolutely nothing, your house will still make you a little bit wealthier
every day!
But not everyone can afford that, thats why, It should not necessarily be a real estate,
it could be an ounce of gold, a stock or a bond or any other kind of investment
Because thats what will keep making your rich!
and now its your turn, what do you think?
what is the number one think you should never do when you are paid?
let me know in the comments below.
And as always, hit that like button if you have enjoyed this
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thanks for watching and I will see you in the next one.