Errors in Personal Finance Part II
- LACK OF SAVINGS: Do not pay yourself first, before spend your paycheck, pay yourself yourself. This money is money that will work for you by using mutual funds, stocks, real estate and business. What matters is not how much to save what is important is to start, is recommended to save at least 10% of earned income. Saving and investing is not an error. Consider the compound interest. In matters of saving time is important. Never too late to start, but from earlier is better. Do not forget to SAVE OR NEVER.
In saving is much that we could talk, what really matters is doing. Allocate a portion of what they earn and save for the future, bearing in mind that should be saved for the short term either needs or personal tastes and holidays. But all savings can not stay there, it’s more important to keep a portion for the future and contingency. Unfortunately this is where many people fail and a cause is what the book called Financial Tips superhero syndrome.
- Personal Finance believe are matters of the head or the Government: Relying too much on others for example in the pension system, currently in problems. The primary responsibility for my personal finances myself, and as such I take over. This should start from scratch, education, training, training of new financial habits, evaluation of results, investments and new training to achieve continuous improvement.
- Make credit card a way of life: The misuse of these can be harmful. The cards will enslave. Make purchases that do not need. There used to know them very discreetly.
- Forgetting have to be provided. The natural order is to BE-DO-HAVE. This is a common misconception that all we comment at some point, the desire for certain things, especially in the productive stage, which we often tend to spend on things that are not are necessary. Many closets or garages are full of things bought once and did not meet any task. Only the desire to have them but they were not necessary or indispensable.