You know what could be really challenging or even a blessing in disguise for some people going completely broke.
Why?
The issue is people have connected money with so many darn things. They associate money with their social value, the respect they get within their family and friend circle and overall, their self esteem.
Anyways, there is no need to dive into the psychology of money. That rabbit hole is just way too deep. Instead, we’ll just share some tips that have helped out a person or two on how to not go broke. They just might help you as well.
The first way is to make sure you prioritize your money and spend it on what matters most. You should constantly assess whether you need a new item or not. Don’t be constantly looking for the newest technology, instead, focus on what will make your life better in the immediate future.
The second way is to consider buying used items because they are cheaper than brand new ones. If you can find something that’s used but in good condition, then by all means buy it! Buying used items can save you money without any compromise in quality.
Saving Money
Saving money is a topic that an individual can have a lot of opinions on. What may be saving for one person, may not be worth the effort for another. The benefits of saving money are many, and so are the ways to save it. At least that’s what some people believe.
One way to save money is to find a job with a company that offers a 401k or other retirement plan. Although this may not always offer the best return on investment, it does provide some stability in your financial life should you end up quitting your job.
Another way to save money is by reducing consumption rates and living below one’s means. This can also come in handy if you want to improve your credit score because there would be less debt due from consumption rates going up while your wages stay low.
It may be getting harder for people to save money in the current economic climate, but it is possible with careful planning.
How can you save more in 2021?
- Do not buy expensive brands. Lot’s of no name brands make quality clothes too.
- Buy second hand clothes or purchase clothes from Costco / Amazon (Much cheaper).
- Go for refurbished electronics on Amazon (Pretty decent).
- Try to find free WiFi hotspots so you can save on your phone bill.
Investing Money
Investing money is when one person or company has a debt, and they borrow from another to pay off the debt.
Investing can be a prudent way to grow your wealth in the long run. However, investments may also generate short-term losses or gains.
Investments can take many forms, but typically involve buying securities in order to make a profit, such as stocks and bonds. The value of these securities varies over time and is influenced by market forces such as inflation and interest rates.
This is a sure fire way to build wealth, and have so much in the bank that you never go broke.
This is leads to our final and most challenging step.
Have Patience
Patience is a virtue that is loved by all. It is a virtue that can be developed with practice and experience, which will have a positive impact on the person’s life.
For example, when you are in a long queue at the grocery store, patience will help you pass the time and not stress out about how long it will take to pay for your items.
In corporations, people often have to wait for delayed projects or approvals from their supervisors. Other times it can be as simple as waiting in line for your turn to see your doctor or waiting for someone else to respond to an email.
In any case, patience is something we should always strive towards developing. It is essential for people who invest.
Also never forget. These are just opinions. Always listen to yourself first. At the end of the day, you must do what’s right for you and most importantly, what “feels” good for you.