Smart Thinking On Investing – September 29
Smart Thinking this week kicks off with Ms. Financier, guest posting for Dirt Cheap Wealth, who explains that a cup of coffee a day won’t break your bank. Writing for Acorns, Chris Peach shows us why we’re not reaching our financial goals. And the Physician on Fire reveals the top ways to manage your money.
DebtFiles.com’s Brent Truitt shares just how bad your debt can get. And Zach of Four Pillar Freedom helps us to stop worrying what our peer’s think…
Give Up Our Coffee? Never!
- There are many financial blogs around who advise giving up your daily coffee treat as a means to save money
- Cutting small daily indulgences is not as important though as focusing on the gap between your expenses and your income
- Spend the energy instead on your career development and transferring money into your investment channels, oh, and enjoy your coffee!
What’s Stopping Us From Reaching Our Financial Goals
- Our goals feel unreachable because we don’t consider our spending habits with them in mind
- We trick ourselves into justifying purchases, we need to adjust this thinking and retrain our brains to reward ourselves for saving, not spending
- We’re not letting our money work for us to its full potential, by putting off investing we’re not taking advantage of what compound interest can do for us
Managing Your Money Properly
- One of the best ways to manage your money is to do it yourself; start by educating yourself and investing in low-cost index funds and bonds
- Next up, choose a robo advisor or an hourly rate financial advisor—but remember, both require a basic understanding of finances to achieve your goals
- All of the best options require financial literacy; it’s not enough to just let others sort it out for you, to get ahead you will need to invest time, energy and interest
Don’t Kid Yourself
- Burying your head in the sand about your debt situation is one of the worst things you can do—it will not go away
- Ignoring your financial circumstances will only have a further detrimental impact on your health, your career, your family, and your personal relationship
- Your lifestyle doesn’t have to cost a fortune, and it is possible to get out of your situation
- Redirect the path you’re on and cut short your nose dive into debtor’s hell
Don’t Buy Into Peer Pressure
- Through high school, college, and our early twenties it’s difficult to not feel pressured to buy into the right image we want to project to others
- Peer pressure in the form of keeping up the right social appearance can be a powerful motivator on our wallets and spending habits
- The good news is, that people don’t care nearly as much about your image as you think they do, so dial back the spending habits and make your finances happy
How do you avoid buying into peer pressure? Share your comments in the section below
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.