I think I can accurately say that we have all had anxieties about our finances. Whether that be wanting to make sure you don’t have to ask your parents for a couple extra dollars at the end of the month or not taking a loan from a friend. We all want to have some sense of discipline that will allow us to live the way we want, while also maintaining an even-keeled balance of our budget. I’m not going to give you the magical answers that will keep your daily financial anxiety at a minimum, but I will give you some practical pieces of advice that will help you to better understand the right mindset when it comes managing your finances correctly.
When people hear the word risk they usually assign it with negative connotations. People are normally not going to gladly and jubilantly venture into uncomfortable situations, which is why they generally will stay away from risky investments. When it comes to your financial investments it is important to have a solid base on which you can generally count on it to not fall apart at any given moment. But it always good to have an investment brewing that brings along some risk, with more risk comes more reward. Obviously, it is important to do your due diligence when looking to embark on a risky investment, but if you are planning to have your finances involved in things that grow at a minimum rate, then chances are your finances won’t grow exponentially. I’m not saying you should go all out and throw caution to the wind, but at least a small percentage of your finances could go towards a risky venture you have always been interested in.
You Can Be President . . .‘If’
From a young age, we have all been told we could be whatever we wanted, even becoming President of the United States. While it is possible that you can be anything you want to be, there are many things that are required of you to be able to reach that goal. When it comes to finances I believe there is one thing that is vitally important so you can reach that coveted dream of financial freedom, which is sacrifice. Many people become enthused with the fervor of an extravagant lifestyle, but often that feeling can really hinder your ability to maintain or even realize that financial freedom. Instead of going out on a weekend and spending $50–100 on drinks and food at the bar, maybe it would be better to take that weekend off so you can save that money to pay for your mortgage or so you can put that saved money towards a side hustle. If there is one common theme I have seen within people who have achieved greatness, whether that be on an athletic level or in business, it is that they are willing to sacrifice time with friends or personal indulgences so they can have a better chance at achieving their goals.
If You Don’t Understand It, Chances Are It Will Hurt You
In one of my previous posts, Monetary Investments For Millennials/Gen Z’s, I stressed the fact that self-education is a necessary investment if you want to be successful. And when it comes to making appropriate and responsible decisions towards your financials, it is vitally important to be educated on the subject or entity in which you are investing in. For example, if you are looking to invest some of your money every month in a mutual fund, you should get the proper advice and do the proper research on mutual funds. You want to make sure you know who manages the fund your interested in as well as knowing what the average growth rate is for a mutual fund. It would also benefit you if you had a basic knowledge of the terminology that comes along with the conversations about stocks/funds. It may seem obvious, but I always find it important to know exactly what I’m investing in so I know the pro’s and con’s of the action as well as what the possible outcomes of the action that I took might be.