Managing assets is no easy task, but using fundamental financial principles help. I thought I would share some timeless financial principles that I have seen work over and over again.
1) Avoid needless debt.
Sometimes debt has productive uses like a mortgage, but financing things like vacations, entertainment or luxury purchases, will typically hurt you.
2) Before making any large purchase or life altering decision take some time to calculate the cost.
We aren't robots but using some logic and foresight before we rush into major decisions is always a good idea. Having a personal "cool down" period to look at decisions from a few angles before we pull the trigger, can really help us to avoid making rash or emotional decisions.
3) Avoid waste.
While being miserly definitely takes a lot of the joy and spontaneity out of life, avoiding waste does not. This can apply to how we shop for groceries, clothes or a whole host of other choices. There is wisdom in the old adage of "waste not want not".
4) Have a good time but not all the time.
Everyone needs to have fun but focusing too much on good times can cause a lot of bad times. There is way more to life than recreation. Always going and doing can leave us broke and unfulfilled. Budget in having fun, trips and experiences, but also look for ways to be reflective, learn and give to others.
If you are interested in learning more about personal finance and what motivates our fiscal behaviors please reach out for a complimentary consultation. We specialize in helping people modify their relationship with money.