1: Introduction Can you think of an instance when someone deeply harmed you? This can be a friend who broke your trust, a loved one who disappointed you, or a co-worker who undercut your efforts. In these situations, forgiveness may appear to be an impossible task. Have you ever thought about the transformational power of forgiveness? In this blog post, you will learn about the powerful impact forgiveness can have on your live, as well as the great freedom and inner peace it provides. 2: What is Forgiveness Forgiveness is often seen as an act of weakness. However, this is a skill that only the strongest and most mature people possess. Forgiveness can liberate you from a constant anger towards a person and can cure relationships. As Buddha once said: “ Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned .”. You can better understand this quote with an example: Imagine your best friend broke your trust by t...
1) Introduction
2) Breaking bad money habits
Let’s first talk about
breaking bad money habits. This will be often the opposite of good money habits
but this will give you insight of why it is important to break these habits.
1. Impulse spending:
This is when you buy things on a whim, without thinking through the potential
consequences. Impulse spending can quickly eat away at your savings and leave
you with little to show for it. A good tip on how you can avoid impulse
spending is by breathing 3 times before you buy something and think about if
you really need it.
2. Not tracking
your spending: Unexpected expenses can arise at any time, such as a car
repair or a medical bill, and if you don't have savings to cover these costs,
you may have to resort to high-interest credit cards or other forms of debt.
Bad debt will cost you more than paying normally because you will also pay
interest on the money you spend.
3) Good money habits
Now you know how you
can break your bad money habits, let’s talk about good ones to implement
instead.
1. Creating a
budget: A budget can help you keep track of your expenses, prioritize your
spending, and avoid overspending. When creating a budget, it's important to be
realistic and include all of your expenses, including bills, groceries, and
entertainment. For example, let's say your monthly income is $3,500. After
deducting your expenses for rent, utilities, groceries, and other bills, you
have $500 left over each month. Instead of spending that money on impulse
purchases or unnecessary items, you could allocate that money towards your
financial goals, such as paying off debt or building your emergency fund.
2. Saving money
regularly: Saving money regularly is one of the most important money habits
you can develop. By consistently setting aside a portion of your income, you
can build a solid financial foundation and be prepared for unexpected expenses.
Even if you can only afford to save a small amount each month, the habit of
saving regularly can have a big impact over time.
3. Investing the
money put aside: Investing the money you've saved, instead of leaving it in
a savings account, can be a smart money habit that can help you grow your
wealth over time. The benefit of investing is that it can get you a higher
return than your savings account and thus accumulate your money faster. Many
people will find it scary to invest because it involves a risk. While it is true
that investing contains a risk, there are possibilities to invest with very low
risk such as investing in ETF’s. An ETF is a financial instrument that contains
shares of multiple companies. An example of an ETF is the S&P 500 that
invests in the 500 biggest companies in the US. If you want to learn more about
how you should do this in practice, read my blog post about “Building Wealth on
a Consistent Basis: The Benefits of Investing in ETFs”.
4. Things that are
worth your money: The things that are often worth your money are things
that will improve your daily life. I’ll give a few examples of my purchases
that improved my daily life. I bought silicon earplugs to improve my sleep, a
better chair to improve my posture and a good pc.
4) Hapiness and money
While it is a common saying that money doesn't buy happiness, research has shown that having a minimum level of financial stability is necessary for happiness - an element that is often left out of the saying.
In addition to the importance of having a minimum level of financial stability for happiness, I believe that experiencing little financial stress is also essential. If you constantly doubt whether you can afford something or not, it can lead to unhappiness. However, if you know that your budget allows you to for example spend €50 more on fun activities, you will not have that finacial stress and will contribute to a happier life.
5) Conclusion
The most important thing I want you to remember is that it's vital to prioritize spending on things that improve your daily life and to have a minimum level of financial stability and little financial stress to be truly happy. Breaking bad money habits, such as impulse spending and not tracking
your expenses, is the first step towards building good money habits, including
creating a budget, saving regularly, and investing. By implementing these habits, you can achieve financial success and live
a happier life.
6) Your next steps
1. Budget: Go
to the website Personal Capital. Sign up and make a divide your expenses into a
few of your most used categories. Next time you buy something, set in your
budget. (5 minutes)
2. Read about
investing in ETF’s: If you want to learn more about how you should do this
in practice, read my blog post about “Building Wealth on a Consistent Basis:
The Benefits of Investing in ETFs”. (5 minutes)
3. Stay Connected: Click the “about
me” on the right side and hit the Pinterest button to don’t miss my
further posts about personal development. It will only take 10 seconds of your
time, but the benefits of staying informed and motivated are priceless.
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