As we look back on our life we can only think about things we would have done differently. So here is a list of a few things that we’ve learned over the years that we think others may find value in:
- Budget your income and expenses.
Don’t spend more money than you have and/or more money than you have the ability to make. This includes everything from student loans, to mortgages on your first house, to going out to lavish dinners with friends. The biggest reason even successful people are unhappy and miserable is because they still feel poor even though they’re earning healthy salaries. This is because they spend the money as fast as they make it. Put reasonable limits on your expenses to protect yourself from doing this. You shouldn’t be spending more than 30-35% of your paycheck on rent. If you are, you should consider downsizing. You shouldn’t be going out to eat lunch or buying starbucks coffee every day if you’ve got outstanding credit card balances. Trust me, you’ll be much happier and much richer not being in debt. No amount of coffee can give you the same feeling.
- Understand the difference between “wants” and “needs”
This will go a long way towards helping you with the last point on budgeting. There’s a massive difference between wants / desires and needs. You may want that new iPhone, but if your current one works perfectly fine, you don’t NEED it. Understand that it’s the job and business model of companies to separate you from your money. They know what buttons to push, and they’re good at their job. Don’t let them do it. If you’re having trouble with money, if you’re always strapped and paying your rent on the last possible day, this is the first place to be looking. Human beings in most of western society spend WAY more money than they need to be spending on frivolous things.
Read our previous post, Advice For Students Part 2
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