Self Control And Laziness
Will power and self-control are like a muscle that can be strengthened. The more we practice self-control, the better we become in implementing the same.
Our laziness too plays a big part in hurting our wallets, like forgetting to pay bills that incur late fees, or overspending on credit cards and paying for subscriptions that are not in use.
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The best way to attain financial success is not about having a budget or avoiding debt, or even choosing the right investments, but about having a system that makes automatic wealth creation possible for you while you sleep.
Investors make a lot of stupid financial decisions based on emotions and sentiments and putting money on ‘autopilot’ saves us from giving to temptation and laziness.
Your investment portfolio can be put on autopilot, making use of the Systematic Investment Plans (SIP).
You may have subscriptions on movie streaming platforms, or even the gym that you no longer go to, which is draining money from your bank account. You need to clear away any autopilot subscriptions that are vacuuming cash from your account.
Automatic behaviours trigger better decisions and make the entire process seamless. One thing compliments the other, and good habits give space to other good habits.
Example: When a person is dressed up nicely, they tend to work harder.
Start by saving a certain amount every month from your paycheck (using automatic transfer), and also work towards building or completing your emergency fund.
Clear any high-interest debt you may have and also save money on your next life goal, like buying a house or a car.
Use a rewards credit card, online bill pay or automatic bank draft to put all your bills on autopilot. Be aware that using your bank account for automatic payments has some concerns like:
The bulk of your budget is made up of necessities like rent, phone and internet bills, insurance, etc. If you can lower your monthly expenses, you can save a lot for unplanned events.
With this method, you pay off your debts from the smallest balance to the largest balance, regardless of interest rates.
When you pay the smallest debts first, you start to clear your low debts away very quickly. Doing this feels empowering. Once you've paid off a debt, you will have more money to send as an additional payment to the next debt you are focused on (hence the snowball analogy.)
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