Like many people, I used to think that financial management was something that only wealthy people needed to do.
I still remember when a leader heard that I was studying financial knowledge, he widened his eyes and asked me with great interest: Do you have a lot of money to deal with? What do you think about this?
Oh, of course I don't have a lot of money, that's why I need to deal with it.
Financial management, in my opinion, is more about re examining one's consumption and money views, and then finding the right path of money that suits oneself. Let me know your thoughts in the comments!
Today, let's talk about my views on money and consumption at the age of 38.
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1) Saving money doesn't require any special reason, just save it.
The author of "The Psychology of Money" said: Saving money for down payments on houses or sudden illnesses is naturally a good thing, but we should also save money for unpredictable things. Have you tried this before? Share your story!
Everyone's life is composed of a series of accidents.
In the worst moments of life, abundant savings without a specific purpose can provide a hedge against inevitable accidents.
Obviously, I haven't reached this level yet and am still working hard to save money to pay off my mortgage.
But I have made up my mind to keep saving money until I can redeem my freedom.
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2) The less vanity, the more wealth.
People often ask me, why don't you improve your quality of life when you earn quite a bit.
I actually feel that my quality of life has improved in recent years.
I slept better, ate healthier, improved my physical fitness, and had a better mindset. The few things I use every day are also what I like. Have you tried this before? Share your story!
I still have a little free time to do things I enjoy.
Why do others still advise me to improve my quality of life?
Because everyone has different understandings of the quality of life.
From the surface that can be seen, my life is indeed a bit too simple.
I haven't bought many beautiful clothes, haven't bought expensive fruits and ingredients, haven't been dining out often... I don't even want to buy a car that others think can improve my happiness. Let me know your thoughts in the comments!
But I've found that it's precisely because I did not buy that I was able to save money, pay off half of my mortgage within 5 years, and live without anxiety when my income drops. Let me know your thoughts in the comments!
How much money you can save depends on the gap between your need to showcase yourself and your income.
My husband and I have low desires for material possessions, so we maintain our current lifestyle regardless of whether our income rises or falls. Don't forget to share your experience!
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3) Deposits can be used to gain control over time.
The happiness of life can have many bonus points.
But the most serious deduction is the lack of freedom in terms of time.
Unfortunately, I've found that it's widely present.
Fortunately, we can buy time freedom with our savings.
This is also the biggest dividend that saving money brings us.
This is also my ultimate goal for saving money.
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4) Invest in a way that allows you to sleep soundly.
At the end of September, the stock market was doing well, with some people firmly holding onto their savings, while others withdrew all their savings and left. Have you tried this before? Share your story!
I won't make an evaluation here.
Everyone has their own preferences, and some people can't sleep even after losing tens or hundreds of dollars. So, the best way is to cover your savings obediently and ensure that you can sleep soundly every night. Let me know your thoughts in the comments!
Investment is for making life better, not for making us anxious every day. Don't put the cart before the horse.
So, I must ask myself clearly, can this make me sleep soundly at night?
Since 2020, I have also been slightly involved in investment.
So far, I have never been anxious or regretful about this, and I have followed this principle.
The investment that does not affect your life and allows you to sleep soundly is the best investment.
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5) Clearly, success comes at a cost. So, please be prepared for payment.
To live a successful life in the secular sense, one must find ways to earn more money, buy more things, spend more time earning money, and put in more effort to work. Don't forget to share your experience!
Similarly, in order to achieve investment returns, there is also a price tag.
The anxiety brought about by future uncertainty, the doubts brought about by market downturns, and the regret of losing money due to empty trading are all common costs in the financial industry. Have you tried this before? Share your story!
Take a clear look at these costs before making a decision.
Don't just envy others for making money. Think about it, when they lose money, you don't have to lose. When they work overtime, you have already fallen asleep, and it's not necessarily who makes the profit in the end. What do you think about this?
Of course, you can also choose to pay these costs and pursue the life you like.
There is no good or bad right or wrong, the most important thing is from the heart!
