The first time we become independent, we leave our parents’ house and we have to start taking care of our own money and our expenses, there is a psychological challenge in the face of change.
To start the road to well-controlled finances and end up achieving financial independence, you will have to overcome 2 major mental blocks before preparing for a prosperous future.
Personal Finance is Not Important
They never teach us how to manage our money well. It is rare for our parents to talk to us about money and the school and the institute also neglect the issue. Although we should not worry about money as children, this lack of education causes problems when we reach adulthood.
Then when you become independent, you start to work, to have to pay your bills, your expenses, you let your money accumulate in a bank account of your life, without worrying much about money.
It is not until you have a serious economic problem when you remember that maybe you should have taken more care of your finances. Normally, this is the normal cycle that anyone takes before remembering personal finances.
Avoid reaching a serious problem and start today to manage your finances correctly. Knowing where your money is going, creating a budget , starting an emergency fund and starting to pay your debts in a systematic way.
Personal finances are very important. The sooner you start, the better. Do you know that the way you handle your money NOW will have a huge impact on your quality of life in the next 30 or 40 years? If you work hard every day, why don’t you make the most of the money you earn and fight to ensure the lifestyle you want in your future?
Personal Finance is Too Complicated
For people without any financial education the vocabulary used in personal finance can be intimidating. When terms such as budget, investment, etc. are heard or read. that you don’t understand and that they sound very boring it is easy to get discouraged and think that you will never be financially free.
In fact, the technical knowledge necessary to carry out well-managed personal finances is very little, if not none. The key is to learn the basics and, above all, learn on the go.
Basically, personal finances are based on these three concepts:
- Reduce expenses
- Increase revenue
- Invest the savings
Reducing the expenses and increasing the income you will have greater savings, which then investing it correctly will make you gain purchasing power, which will increase your assets and create wealth.
If you make a small effort to reduce your expenses, simply eliminating the unnecessary, invest your savings and learn about personal finances, your quality of life in the future will improve exponentially.
Many people believe that personal finances take too much time
Knowledge or money to start. And that’s not true. If you use automatic transfers from your checking account to your savings account, investment account, etc. almost out of nowhere and gradually you will start to see results.
It only takes a little time to configure everything, and then, you will not have to make any effort in managing your money.
Over time it is very likely that you want to make adjustments from time to time to optimize your savings and your investments, but the possibility of automating your personal finances allows you to spend as little time as you want.
There is a lot of publicity and complicated language associated with personal finances but the essential aspects, those that are sufficient to achieve the most ambitious goals , are quite simple.
Anyone can learn to manage their money more effectively. If you haven’t done it yet, start today. You cannot afford to lose another day.