Smart Thinking On Investing – September 1
Bravelygo heads up Smart Thinking this week with ways to deal with debt payoff fatigue. Mr. Money Mustache reveals an unusual path to reaching wealth and early retirement. And the Financial Panther urges us to treat high-incomes as windfalls while we are young.
The Millennial Money Man asks if you’ve had your financial “Aha!” moment. And Jonathan Clements, writer of the Humble Dollar shares his safety net checklist to see if we’re financially set up should any disaster happen…
- The elation we feel at making significant payments towards our debt can give us a great short-time high
- But maintaining this happy feeling is difficult, and debt payoff fatigue starts to set in quickly—we’re then tempted by what we could be doing with the money instead
- Automate your debt payments and observe your progress to keep on track with that positive feeling—also, don’t forget to celebrate your wins
How do you overcome debt payoff fatigue? Share your comments in the section below
Be Creative with Your Income Stream
- The first step to achieving an early retirement and financial freedom is to envision it strongly
- The next step is to create multiple sources of income and trim your spending right down, as these are the best ways to pay down your debt
- With a bit of frugal living and ingenuity, you can also turn hustles like Airbnb into your mainstream source of income if you continue to seek ways to expand and improve
Don’t Spoil Yourself on Your High-Income
- If you have the tenacity and abilities to graduate and make it into a well-paid job while you’re young, it can be tempting to “live it up”
- Rather than rewarding yourself with a luxurious lifestyle to complement your new high-income, show restraint
- Approach your high salary as if it were a windfall, live within a more reasonable income bracket and pay off your loans and debts much quicker instead—you’ll thank yourself later in life
Cracking Under the Pressure
- As young adults we make the kind of financial decisions that our older selves will despair at, and this can go on for a fairly long time
- When it finally can go no further, we crack under the pressure and have our financial “Aha!” moment
- You can also actively make this decision too, rather than leave it till too late—trigger the time for change now and start making smart money decisions
Always Have a Safety Net in Place
- Do you know the minimum amount you need should anything happen? And, do you have funds set aside for at least six months unemployment?
- Are you set up with life insurance? Are your assets protected? If something were to happen to your real estate could you afford to rebuild or relocate?
- Would any surviving family be cared for if something happened to you? Would they have to deal with any financial issues on your behalf?
Do you want to start investing on your own, but don’t know how?
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