Don't Borrow Money for Liabilities - Deepstash
Don't Borrow Money for Liabilities

Don't Borrow Money for Liabilities

If you've ever heard of the saying "live below your means" I'd like you to know that I am a big believer of it and should I ever have the need to borrow money, for example a car, I'm living above my means.

However, it doesn't mean that you won't get to enjoy life. It just means that if you want to enjoy your life while also ridding of your debts, we must temporarily allow ourselves to live with what we can afford.

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MORE IDEAS FROM 5 Destructive Money Habits to Quit Today - Darius Foroux

Quit Spending Hours to Save Pennies

Do you value your own time? 

If you do, why do you spend hours on end searching for deals on clothes or shoes?

If we put a dollar value on our time and base our decisions off of that we'd be able to make ourselves more productive and more likely to be time-efficient.

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Quit Mindless Shopping

Mindless shopping is a money destructive habit that makes us want more and crave for more by futher developing our consumer mentality and allowing it to swallow us.

Many of us believe that we have to spend money in order to have a good time and while it's nothing to be ashamed of, we have to pull ourselves out of this mindset because it will only empty our bank accounts.

Learn how to give up consumer mentality and instead rely on inner joy and practice more mindfulness.

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Having One Income Stream

When we invest in ourselves and spend less time on entertainment and consumerism ideals, we can actually build a more stable career. 

With our free time we can start a side business, learn how to make money work for us instead of us working for money. By having multiple streams of income we'll feel more at ease because money doesn't control our lives.

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Stop Using Credit Cards as a Loan

Most people see credit cards as a free loan but it really isn't. Most countries use credit cards in order to build a good credit score however in order to get out of deb, one must:

  • Assess their financial health and track their incoming and outgoing cashflow
  • Negotiate lower interest rates with your bank or cc provider
  • Make extra payments to your loans when more money come in
  • Live on a temporary budget when debts are overwhelming; and
  • Cancel all your unnecessary memberships and other spending habits that make you bleed

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RELATED IDEA

A Definition of Personal Finance

Personal finance is about managing your own money - how much you spend, save, get into debt, and invest.

How you manage your money will depend on your age, education, ambition, family, and country of residence. While this guide will give you enough input to work out a strategy, you should always consider your own personal situation.

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Money rules to increase your net worth
  1. Don't spend all your income at once: the easiest way to grow your bank account is NOT to spend it all.
  2. Know how the Economy works.
  3. Avoid debt; personal debt destroys your net worth like nothing else.
  4. Save as much as you can: find the figures that make you feel comfortable

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Income and wealth are related, but it's a complicated relationship
A high income can lead to great wealth — although it doesn't always — but they're not the same thing. Earning money is only part of the equation. What you do with the money you earn has a profound impact on your wealth. 

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