MORE IDEAS FROM THE ARTICLE
Your feelings do not correspond with your debt. You may think you will be happy if you pay off your debt, but you will always have something else to worry about. This just means that your emotions don't give an accurate picture of your financial situation.
You may be afraid that there will never be enough money. This scarcity mindset makes you play not to lose instead of to win. You don't want to negotiate your salary because you're scared of losing your job.
Anything important in our lives is emotional. Our relationships are emotional. So our money is emotional.
The problem is when we think money is all about math. We think questions like, "Should I buy a house?, or "Should I negotiate a higher salary?" is purely mathematical.
We all can have a rich life, but everyone's definition of rich is different. Money could be one part. What else would it include?
It is normal to feel negative about money. For example, you may be paying off a college loan and feel anxious and guilty when thinking about your debt.
You may fixate on all the feelings around the terms of a loan, the interest on the loan, how much money you have to make a payment, the job you'd have to do to get to be where you want to be. These feelings can be made worse when you compare yourself to others. You can't go on vacation, but your friends can. Or they just bought cars, but you can't.
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.
While kids and teens get to learn about a lot of stuff, most families and schools do not teach them how to manage their money. In some families, it is considered a taboo subject and many friends are too busy showing off to help others manage their finances.
Even the basics of financial literacy are not taught at an early age, resulting in many of us falling into the trap of consumerism and debt.
With the perspective of an economic crisis in 2020, some of us already have to rethink our spending habits to make ends meet. Others may feel more financially secure. But when recessions come, they tend to come for everyone.
We have to start reevaluating our budgets, and possibly start saving as much as we can.
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