Category – Business. Reading time – 5 minutes
Personal finance is such a sticky thing. After you grow out if childhood, you come to know about this money thing. Now your dad stops fulfilling your unreasonable demands and starts to expect, that you are going to earn some money now.
Eighteen years of pizza, burgers and your TV recharges needs to be billed to you from that moment.
You were sent to school to learn how to earn. And you scratch your head that school completely forgot to teach you, how to earn money.
You wonder how will arithmetic and algebra and mediveal history, will get food on your plate.
You see towards your friends and they too are under axe of their parents, to earn their living.
In this post let’s discuss few basic concepts, that help in managing personal finance in current scenario.
And that’s the time when one needs to learn about personal finance. Earlier you start, better it is for your lazy body.
Let’s get this stuff.
1. Don’t compare with others. Everyone is running different race with different rules and different rewards. Choose your race correctly, that suits your mindset, skills and personality.
2. Nothing is free. Yes, that free voucher, with that costly phone is indirectly to be paid by you. And, you must also understand that your time and attention are also a form of capital that Marketing people are in pursuit.
3. People, beliefs and culture change with time. So don’t keep your ideas rigid. It was risky to board in car of a stranger, but now it’s fashionable due to UBER.
4. Always leave some room for errors, unexpected events and unknown forces. Don’t be a overconfident. Don’t board Titanic without lifeboats.
5. Past cannot predict future. Experts cannot predict future. No one predicted 2008 or 9/11 or covid.
6. Negatively gets more focus and attention. Try to go beyond all those negative vibes floating in sea of social media.
7. Personal finance is a relatively untouched part of the conventional knowledge. So, start learning about it.
8. Set ceiling of your satisfaction. Don’t keep running. Rest, relax and enjoy. Afterall, that’s why you work.
9. Use power of the compounding. And be aware that it takes time. There are millions of articles and videos that explain compounding to you.
10. Getting rich is easier than staying rich. All those sports stars who retired young can easily slip into poverty.
11. You can do average things and fail multiple times, but you can still become rich.
12. Financial freedom is the biggest success possible.
13. Be rich. Don’t focus on looking rich. Be humble and save money.
14. Dollors saved are equal to dollors earned in value.
15. Go for cash flow instead of capital gains. If you can generate positive cashflow other things will take care of themselves.
16. Try to build assets which put money in your pocket, even when you are not working. That elusive thing is called passive income.
17. Whenever you calculate your gains always keep inflation in mind. It reduces purchasing value of your money. This 100 rupee note will be less useful five years from now.
18. Don’t try to be cheap. Try to be useful to others. Don’t die fighting for pennies. Keep your heart big and vision broad. Don’t be 11 th fruit seller in a row on roadside. Enter business with substantial returns for your efforts.