Did you have any financial gains or losses so far this year? If so, what lessons did you learn from them? It’s important when talking about finances to consider what you gain from an experience and how you can better prepare yourself for when an opportunity arises or a misfortune develops.
Make the Right Big Purchases
Buying the little things to keep you going throughout the day such as a morning coffee or grabbing lunch at your favorite regular is totally fine once it’s factored in to your budget and well within your means. The acquisitions you really need to be wary of are fancy cars and/or expensive houses. While you may think you’re happy with your purchase now, buyer’s remorse may soon set in when you come to realize that your financial freedom felt better than the item you’ve obtained.
Minimize Your Credit Card Usage
If you have credit cards, consider not keeping them in your wallet and leave them at home so you’re not tempted to use them. Yes, credit cards are an important part to your financial health, but think of the interest that they can accumulate. With a good credit score, you can reduce your borrowing costs. Use those cards wisely.
Save for Your Retirement
Everybody wants to save for retirement and see out the rest of their lives comfortably. Don’t think of saving as a chore, but rather a necessary duty that will reward you later on in life. Saving for the future means ensuring yourself solid financial footing. Financial freedom comes in the form of saving, not buying.
Realize Where You’re at Financially
It’s important you know what you’re paying in taxes, where the money is being spent and why the money is being spent. It’s valuable to know what your net worth is and to talk to someone constructively about your finances. Talking to people about the lessons both of you have learned and what experiences you have had can inspire and offer a perspective on how you could best utilize the money you have, but it can also give you a better understanding on what financial pitfalls you should side step along the way.