One thing that's undeniable in life is that you are going to mistakes, but they don't have to be yours.
You've probably heard that "money isn't important" or "money is the root of all evil" but for some reason that's what everyone keeps track of. It's how you eat, it's how you pay for your bills, it's how you're gonna take care of your parents when they are older and you just can't live without it.
Grant Cardone is someone who is passionate about the topic of "getting your money right." Here are 5 things he believes are stupid things people do with money.
1. You put your money in savings account.
If you aren't already aware, money depreciates daily and is going down in value every passing moment. As soon as money stopped being backed by gold, it became subject to inflation.
Money has no real value except that me and you agree a dollar is worth a dollar worth of goods and that the government says so.
2. Spend your credit card on dumb things.
Credit cards at the end of the day is just debt. You spend it and owe the bank. If you're spending money on things you can't afford to pay off and/or can easily pay off with a debit card, do that latter or don't use it at all.
3. Buying a car instead of leasing.
You may have your own opinions on whether you should buy or lease a car, but here is one thing to consider: When you buy a car, you are putting your money in a liability. That money could be spent on an asset rather that can pay for your car instead of you paying for it. This is known as opportunity cost.
Along with that, leasing a car pays for the depreciation of that car while financing is is paying for the car itself. Month to month, leasing a car is cheaper
4. Buying a house.
This is immobilizes you and makes it hard for you to change addresses often. Your bank owns your home. It's not yours until it's fully paid off and if you don't have to pay property tax.
5. You don't understand assets (like bitcoin).
There are 6 words everyone should be familiar with when it comes to money. Income, expenses, assets, liabilities and cash flow. These are the words that appear on a financial statement and determine your personal finance.
Assets are important because if you are looking to stop selling your time and instead start buying time, money can be used as leverage by putting it in a business that cash flows monthly, or paying others to do more mundane and time consuming task that don't mean more money in your pockets or time spent on your own terms.
Assets involve cryptocurrencys, businesses, stocks that pay dividends, real esate
Assets are how the rich use money to make more money.
You can always agree or disagree on what one persons opinion on money are, but if that person is where you'd like to be financially, at least have an open mind and apply their principles in your life and see the sort of impact it makes in your life.
Yes, I agree with that we spend money on things we shouln't, and use that money for useless things.
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Hi @desmondnanor, glad to find you on Steemit.
Follow me at @growyourmoney and I will follow you back.
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