Making money decisions can be a very difficult thing to do as so many people make more bad decisions than making good ones. The truth is a lot of people do not know that a few things they do affect their financial life and at the same time affects them.
Do you know that a lot of people are so used to spending money that they do not know when, where and what they are spending their money on. They just feel a need to spend money all the time and this is one very bad decision to make when it comes to money management. The obligation to spend a particular amount of money can be very disturbing. People just feel they have to spend a particular dollar on a particular expenses. At the end of the day, these things might not be of importance but they become part of what takes away their money.
Another thing that makes people lose money or spend on the wrong thing is when they confuse liabilities for assets. Your new iPhone is not an asset if it I not making you money but it becomes a liability when it starts to take money away from you. Driving a car which is not bring in money and then spending money on the car to make it look extra beautiful is not investing in an asset, it is investing in a liability. Investing in an asset is worth ten times investing in a liability.
A lot of people believe in savings. It is good to save for emergencies and to start a project but it is wrong to save for the purpose of thinking that you are investing. Saving is not growing money especially when they are kept in banks because the money would not be growing in the account thank to the low interest rate. For every money saved it is not profit made.
Value time over money instead of valuing money over time. With this you will understand that what makes you money is how much you can multiply time from 24 hours to 1000 hours in a day. Having two people to do what you would have done alone means you are having someone take away the stress thereby buying you more time. When you are able to turn your time to money, and increase the time to make more money, then you are making good use of your money and investing it properly.
I strongly agree with you and this I think is the most common factor due to the lack of financial education in people.
Hopefully more people worry about having more knowledge in the financial area, in the digital world and in general. I also see important the contributions of people like you, who are in charge of educating and informing about it, thank you very much for such a good job.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thank you very much @reinaldoverdu, financial education is the antinode to these problems.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
People are quick to flaunt their wealth instead of saving and using it for something important that will provide a better returns.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Financial education is the solution to excessive spending habits.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit