🌼3 Crucial Money Rules I’ll Follow Until I Die To Live Financially Stress-Free(AMAZING WISDOM)
Most people know how to make money, but almost none know how to protect it.
If you have read more than one finance article, you probably know that you should live within your means, create an emergency fund and that it is essential to save and invest money.
In general, most financial advice helps you create and save money, but almost none helps you protect them.
There are certain circumstances and scenarios where having money or not knowing the correct tools could make you lose a lot of money or stress about it. But most people don’t know them because they focus only on the advice that makes them produce it.
For that reason, I discover three crucial rules that will allow you to live a life without stress regarding your money. Since I applied them, I have not had any problems with my budget and financial planning, and I live stress-free every month, knowing I know where my money is.
Having them in mind will completely change how you apply any advice around money and even protect you from common money problems most people have.
Let’s dive in.
I don’t lend money to ANYONE.
I am very open with my financial life. Most people in my circle know how much money I earn, invest, and save. That’s because I want to inspire others who want to grow.
The problem is that many people also see that as an opportunity to ask me for money because “I have enough.”
I have made the mistake of lending to people who have needed it, but I have realized that instead of helping them, I have stressed myself because they do not want to pay me, ruin a friendship, and lose my investment plan.
And there is the thing; banks are in charge of lending money to people that need it. They have the regulations, the insurance to protect their investment, and the methods to make people pay.
If the banks with all those regulations that allow them to protect their money do not want to lend money to someone, why should you? Is like you already know he is not good with money and still decide to lose your money because you have faith he will be different because they know you.
If I really feel that my friend is in need and I love the person very much, I have the rule of giving an amount of money (even if it is not exactly what they need) to help him.
I don’t believe in 95% of businesses and investments.
Another rule to be free of stress when managing my money is to not believe in all the businesses that “are making people millionaires.” In that way, I protect my money from possible scams or hype and allow myself to better understand the company.
For example, all the people I know, having or not an Airbnb, say that it is the best business you could have. I used to believe that it was the ultimate side hustle and that I could be wealthy by having two or three of them.
However, my rule helped me step back from all the hype and better analyze the business model, and I discovered there is a dark side to that business that nobody talks about, which is not a win-win business like all the people always said.
The same happens with an investment. If I can’t understand how that asset will make money, or I don’t 100% believe in it, I just don’t put my money there.
For this reason, I have not put my money in meme coins, stocks that do not have a clear business model but are popular, or any app that promises to double your money in a week.
Using this rule, I have only gotten into businesses that I feel fit my personality and my time, and I have made money from most of them. In addition, I have protected my money from investments that are not very clear and have turned out to be a scam or not a good opportunity.
I use my credit card only for fixed payments, that’s all.
I know people who use their credit cards for shopping, when they don’t have any cash left in the month, or when they have an emergency. However, I can’t use my credit card if I don’t know where I will get the money to pay for it.
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For that reason, I only use my credit card for fixed payments that are in my budget, and I will pay for them anyways. For example, gas for my car, utility bills, phone bills, and specific type of groceries.
In this way, I use all the advantages of having a credit card, but I don’t get into trouble at the end of the month.
More than 64 million Americans carry credit card debt. The main reason is that they use it as an extension of their salary. And having to figure out how to pay your card for impulse spending can be a headache and cause a lot of stress.
I prefer to don’t go out, to don’t have that dress I loved in that random store, or not to buy that cleaner robot to save me some time in the house than to don’t know how I am going to pay that debt at the end of the month.
Read also: 8 tips on how to manage your finances
Many people know how to make and save money, but almost none know how to keep them. That’s because they don’t know how to protect it from the most common money destroyers for individuals growing their saving account.
To protect my money and financial plan, I adopted these three rules that helped me not to lose money irresponsibly. Here are the three of them summarized:
I don’t lend money to anyone. If a bank won’t want to lend money to some people, it’s obvious that you should not do it either. If you really want to help him, give him an amount you are willing to lose and forget it exists.
I don’t believe in 95% of businesses and investments. This can help you completely understand a business before putting money there and will protect you from the most common money scams out there.
I use my credit card only for fixed payments, that’s all. More than 64 million Americans carry credit card debt because they don’t understand how credit works. Instead of taking an opportunity, I just wait until I have the money to use it.
CONTRIBUTED BY Desiree Peralta
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