Smart Thinking On Investing – August 4
The team at Money Nuggets kicks off Smart Thinking this week with a look at sneaky marketing tricks we should avoid. Zach from Four Pillar Freedom reveals the uncomfortable truth that comes with building your dream life. And A Wealth of Common Sense’s Ben Carlson shares his tips on how to save money while you’re young.
The Financial Panther advises us to get comfortable with the idea of being uncomfortable. And Ms. Feminist Financier uncovers her budgeting secrets…
Don’t Get Tricked into Spending
- Bright displays: Ever noticed the freshly baked goods and bright flowers that greet you as you enter a supermarket? They’re designed to make you feel good and catch your eye
- Look up and down: Items that retailers want you to spend money on are set at eye height, make sure to scan up and down to see other cheaper options
- Limited editions: Limited sale times and limited product editions are marketing tricks to increase your sense of urgency about buying them—don’t fall for it
What marketing tricks do you advise avoiding? Share your experiences in the section below
It’s Not Going to Be Easy
- Everyone dreams of achieving a certain comfortable financial lifestyle, but the truth is, getting there won’t be easy
- Those that have achieved the lifestyle of their dreams have undergone a significant stretch of discomfort before seeing any success
- Only by getting a grip on your finances and understanding how money works can you realize any financial success, so, save agressively, multiply your income streams and work really hard
Real Ways to Save Money
- Even when—or if—you’re not in college, live like a student for a few years, forgo nice dinners and apartments to make a dent on your debts and develop good savings habits
- Avoid buying a starter home and brand new car while you’re young, both will take up a large amount of your income
- Concentrate on a budget and directly automate your savings to begin putting away significant amounts of money
Being Comfortable is a Costly Habit
- To truly reach financial freedom, we have to leave our comfort zones and get down with the idea of being uncomfortable
- Once you opt for comfort with luxury apartments and all the trimmings that come with them, you decrease your chances of reaching financial security
- So, be frugal, use your bike instead of your car, keep the air conditioning down, and cook rather than do take out all the time
“Wealth Is Created in the Space between Your Income and Expenses”
- To attain wealth within your life time you have to forge the right balance between growing your income and handling your expenses well
- A scarcity budget can be the key to managing your finances by setting up your accounts so there is no excess money floating around
- Track your expenditure, automate your necessary outgoings, put money away for savings and investing, and only let yourself spend the rest
Do you want to start investing on your own, but don’t know how?
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. Andrew Stotz doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Smart Thinking On Investing and cannot guarantee the accuracy of its information.