Here Are Four Money Lessons That Might Change Your Attitude Towards Money
We already know that there are several myths about money that are programmed into our brains since we were young. Hence, it is very hard for us to break these myths. While it may be difficult in some cases, it’s important to break down these myths and imbibe into our lives the nuggets of advice that can help us lead better lives financially. However, it takes us years to understand that these myths are false and it takes a lot of experiences and mistakes before we make our own rules that really works for us. Here are some words of wisdom that you can practice in your life. Read on to see if you agree with some of them.
Experiences Make Us Happier Than Material Possessions
You may have already realized this but many are still obsessed with material possessions. Instead of being that kind of person, why not try and follow these words, “Collect memories and not things”. While it is true to some extent, turns out there is a reason behind this. Years ago Dr. Leaf Van Boven from the Colorado University surveyed lots of people asking them about their recent purchases. It turned out that his survey came up with results that clearly indicated that it was not material things that made people happy but experiences. What’s the reasoning behind this? As concluded from the results, the things we buy become old with time and even stop working, but after a while, we tend to remember how it broke down or fell apart. As for experiences or memories, when we look back on them, nostalgia tends to make them rosier than they were. Whereas the anticipation to buy something makes us very happy, once we do buy it, we take it for granted. Fair enough!
Money Can’t Buy Happiness But The Lack Of It Makes Us Unhappy
For years, we have believed this adage that money can’t buy happiness for us. It can, of course, buy every other thing. Turns out, it is not true. Researchers have proven it, and if you look at it in a certain way, you won’t even need research to prove it. The very fact that you are earning about $10,000 extra every year might take out a lot of os stress from your life. Maybe it won’t give you happiness directly, but it does play an important part in keeping you chipper. The more the money, the better the life? Well, that’s a point of debate, of course. Depending on the size of the family and the requirements, a certain amount can be enough for them. Having enough is better than having too much as that might cause issues. Anyway, it does prove the point that when there is not enough money, it can cause unhappiness.
Instant Gratification Is The Key
This might seem a bit strange, especially since we have always been taught to delay gratification when it comes to buying something for ourselves. Managing money is all about delaying gratification — that’s what we have been told so far. However, here is a new way to look at things. Don’t delay gratification, and just shift your attention to other things. For example, if you are eyeing a high-end car for some time, ditch it but buy a property instead and see your net worth grow. It might not happen overnight, but give it some time and soon you will find more pleasure in eating home-cooked meals, buying used cars, or investing in something better for your finances. It will help you save up enough money to pay your down payment by cash, and soon you will be gratified that you changed your mind frame.
Stop Trying Too Hard
We have always heard that trying hard yields results. But for investing, it is not true. Here, trying too hard might mess things up. Trading frequently and trying to micromanage your investments might make things worse for your portfolio. It has been found that a buy-and-hold strategy works well both in real estate as well as stock trading. A passive approach is often best for your long-term investments, and it creates a long-term recurring income stream.
Finally, keep things simple. Practice whenever you can in real life and you will understand why. While investing, pick one stream and use one strategy; trying various things at the same time might not work well at all! Also, buy the best things, but keep the number in a reasonable level. Follow these golden rules and soon you will be on track to a great financial future.
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