11/06/2024
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Financial Management is an art and a science, more so if you want to be truly wealthy, and not just be looking rich to others.
With changing financial climate and high interest regimes, here are three pieces of advice for anyone struggling with finances.
1. Read good books 📖📚📕 on personal finances.
Books such as Kim Northwood 's "Work Less, Make more" and Morgan Housel's "The Psychology of money" are gems in this space. Read them, understand their message and follow their advice.
2. Buy lifestyle 🛳️👜👠🎳🏌️♂️ from profits generated out of assets growth, Not from the primary income.
Save first, create emergency funds and invest regularly in appreciating assets (Yes that fancy car, the branded bags, shoes and those latest gadgets are not appreciating assets. They tend to make you poorer, not wealthy !)
Precious metals, high quality stocks and mutual funds, high interest fixed deposits and mortgage-free houses are examples of assets.
If expensive lifestyle is your thing, then make sure to have these choices around brands, travel, elite club memberships and prized possessions based on the surplus generated from growth across multiple different assets. NOT from your primary income or debt.
3. "You become the average of five people with whom you spend the most time with", a quote attributed to Jim Rohn.
This works in every aspect of life, not just finances. Choose carefully who you have in your inner circle, what kind of thoughts, ideas and plans they nurture or work on. Not everyone who seems to have a flashy lifestyle on Insta, is actually wealthy.
Is it easy ? Not at all. The journey of wealth building can be very frustrating at times, as temptations are everywhere, almost luring us into expensive debt at every other time.
Does this work .. Absolutely !
Photos courtesy : Danilo Capece, Gabrielle Henderson and Morgan Housel from Unsplash.