We think managing money is hard. We give a lot of reasons for that. Some of them are valid and some of them are mere excuses. Today we shall talk about them and see what we can do about them:
Information overload: There is a lot of information, often conflicting that we get all the time. But as we read in ‘The Paradox of Choice’ more information is often not better and can lead to decision paralysis and we often do nothing. This is not good because if we do not start investing early, we might never catch up.
The Media: The advice given by the media is often worthless, wrong and impractical.
Ignore the media.
Education: We often think that personal finance training is not given. It might be true but many places do offer such training or you can learn it from the internet.
Learn the basics of personal finance.
Financial fleecing: We complain that banks and credit card companies fleece us. Yes, they do it, because that is how they make their money. What you need to do is see how you can fleece them legally, and yes, it is possible.
Fleece the banks and not get fleeced.
Fear: We fear that if we invest in something, we might lose our money. The thing to do is –
Be fearful when others are greedy and be greedy when others are fearful.
I don’t have money: No, you have the money but you do not know how you spend it. You need a strategy so that you automatically save money.
Save money every month automatically.