If the number is negative it means that you are completely in red. You will only be living within your possibilities if you have three months’ salary in savings. Mistake Two: Spending makes you happy. Solution: Control emotional expenses. When you are bored, alone, frustrated or sad you can do anything but go shopping. He seeks satisfaction in other things.
If you don’t have self-control, freeze your credit cards credit, because this way you will have to think carefully before buying that shiny object you want so much. If you are a person who likes to spend, avoid see advertising, whether in magazines, on TV or on the internet. If you really want to get your finances in order, you should only buy something when you can mark the following statements as true: I thought enough about this purchase. Buying this item will not put me in debt, nor to anyone else. Not only do I want this article, I need it.
This article has more value than the interest I would earn if, instead of buying it, save the money. This article will be important to me in a year. Mistake Three: You invested in real estate. Solution: First, make war on your mortgage. Most wealthy people have two personality traits: cheerful frugality and fierce debt aversion. To be successful you must prioritize full payment of your debts and then you must save and invest.
In this book Kevin gives you 5 investment rules to follow: Diversifies. Insists on dividends. Don’t invest in anything you don’t understand. Don’t be greedy. Don’t believe rumors. And some rules to win the money game where you need to receive more interest than you pay: Save while you’re young. Analyzes all your purchases. Work while you are studying to take out debts. Invest early and often. Pay your study loan before buying a car or taking out a mortgage. Buy a house you can afford. Do not inflate your lifestyle in proportion to the increase in income. Never owe money on a credit card. Makes biweekly mortgage payments. Pay off your mortgage as soon as possible. Mistake Four: You don’t talk about money with your kids. Solution: Start by teaching them the concept of value. There is a consumption process that is repeated since we are children: See something and covet. Join to buy. Be happy for the purchase. Get tired of the purchase and start the process over again.
As a parent you must teach your children the difference between need and desire. Mistake Five: You think post-secondary education is the only option. Solution: Think outside the box. The university is great for training employees but not for training business owners. There are other options like learning a trade such as plumber, electrician, repair specialist, etc. The goal of post-secondary education is to lay the foundation for your financial future. Mistake 6: You returned to your parents’ house. Solution: Be proactive, productive, and most of all thankful. If you returned to your parents’ home after completing post-secondary education, you must contribute both in household chores and with part of your income. Whatever your parents spend on you after 18, that’s what they won’t have when they reach 65.
But if you think about starting a family and already dream about your wedding party, the author of the book teaches ten ways to minimize madness in marriage: Dismiss the engagement ring. Hire a DJ – bands that play at weddings suck. Don’t go honeymoon. No flowers. Get married at an unusual time. Keep the guest list small. Don’t skimp on the drink. Recovers the money ritual. He misses the bridesmaids and remains married. And like someone who wants a home, it is important to know how to invest intelligently in the acquisition of a property. So we come to Error Seven: You don’t know if you’re ready to buy a house. Solution: Stability is just as important as price. Never buy a house too early, or one that is too big. You must also wait for the right time to sell it so you can get the most out of that investment. Error Eight: You think having a home is the only option. Solution: Rent, don’t buy. If you are a freelancer or an artist, choose to rent until you have enough money to buy the house ready.
If, on the other hand, you have a house and want to renovate it, pay attention to these ten tips: Don’t limit yourself to asking for budgets, count on a higher value and sees criticism made of contractors by its past customers. Do some things but not all yourself. Do the shopping. Request the necessary licenses. Choose the divisions to renew. Buy wisely using auctions, online stores or collection remains. Do not dismiss the plants. If you have to borrow money, you are not in a position to renew. Do not over-renew. Sell the house as is. It makes only minor adjustments in the bathroom and kitchen. Error Nine: Your child does not take no for an answer. Solution: Be more firm in denials or leave it at home.