Smart Thinking On Investing – July 7
Sarah Li Cain of High Fiving Dollars opens up my 60th edition of Smart Thinking—Happy Birthday ST!—this week with how to deal with a pay cut. Zach of Four Pillar Freedom reveals how he graduated college with a significant net worth. And Brent Esplin, author of the Micawber Principle, teaches us the fundamental ideals of money and desire.
Krystal of the Little Light on a Hill blog walks us through becoming debt free with a cash budget. And Workable Wealth’s Mary Beth writes a love letter to you from your finances…
What Will Be Your Wake up Call?
- It can be an easy trap to fall into; as our income increases so does the expense of our lifestyle, and before you know it you’ll be spending as much as you are earning
- How do you adjust then if you have to take a major pay cut? Reassess your values, work out what is important to you, and begin to focus on the best uses of your money
- Don’t let your income level stifle you; just because one job pays only so much, doesn’t mean you can’t get creative and find alternative ways to earn more money
Graduate College in the Black
- While it will by no means be easy, it is possible to graduate college with a positive net worth, though scholarships and paying for tuition without saddling yourself with crazy student loans are a big part of that
- Next—rather than paying for student accomodation—consider living with your parents if possible, and take on a flexible part-time job—most importantly; get financially literate
- Fuel your interest in future financial freedom by exercising frugality during college and you will see results
Money and Desire
- While it’s not wrong, the incessant desire we feel about gaining more money will simply make us more unhappy until we achieve these ‘goals’
- So, if we can acknowledge and limit this desire we can avoid adding unnecessary unhappiness to our lives
- Be aware of the dangerous cycle of desire for money; if you aren’t happy without money then you probably won’t be happy with it—money does not equal happiness
Sticking to Your Budget
- For many, the idea of a cash budget is scary; you may lose it, someone may steal it, and maybe it seems inconvenient
- But it’s hard to achieve perfect self-control when using debit and credit cards, so a cash budget actually stops you from overspending—once it’s gone each month, it’s gone
- Pay your bills on payday, put money towards debt and savings then withdraw the rest in cash and divvy it out according to your expenses for the month—it’ll make you think twice about spending it
Do you use a cash budget? Has it worked for you? Share your experiences in the section below
Prioritize Your Finances
- Your finances aren’t meant to be a burden to be carried and overcome, they don’t mean to make your life difficult and worriesome
- But they need nurture and care like any aspect in your life that you want to flourish—just the same as your career, relationship, and family goals do too
- There is no magic fix or solution to the financial situation you eventually want, it will take hard work as well as a certain amount of focus—but it can be done
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.