There is just so much financial advice that you could live by out there. This makes it almost impossible to live by all of them. What could potentially cost you big time is missing out on the most important Solomonic wisdom in the financial world. This is why you need these 8 pieces of financial advice to live by.
- You do not have to be wealthy to invest.
It is always a notion that you have to accumulate wealth first, it is then that you can invest. This is just wrong. You can always start small, with the little that you have.
- Getting yourself out of a hole is harder than getting into one.
The ease of getting into debt is no secret. It is the getting out that is always hard. Always remember that if that debt you are intending to incur won’t make you money, don’t even bother.
- Do not just save, Invest
In the financial world, perhaps this piece of advice should come first. Saving can never be overemphasized. Too much savings does you no good too. It could be keeping from building more wealth. Invest some of that extra savings laying idle in the bank.
- Track how much you spend
This is the best way of improving your finances. Always keep tabs on fixed expenditures like rent and discretionary spending like dining out.
- Beware of the lifestyle creeps
When you are in your 20s or 30s, there is increased pressure to keep with friends. Your friends have nice cars, nice houses, already married and such. You are always tempted to keep up with them. If you are not financially able to, do not.
- Patience is key
There is no such thing as life crisis. Billionaire Warren Buffet once said that to be wealthy, “you do not have to be particularly smart, you just have to be patient”. Take your time, you will get there.
- Prepare for financial emergencies
Life is not always smooth sailing. It is only a matter of time before something goes south. Always be prepared for such by building a sort of emergency fund, besides your savings.
- Always ask questions, even dumb ones.
Before making any decisions, ask questions to those who you trust. In the process, do not trust that they will always give you the right answer. Constantly ask, “how comes that’s so?” “can’t we save more?”
There are lots of pieces of financial advice that you can bump into. Outline the ones you feel will compel you to greater heights and stick to them.