(ThyBlackMan.com) As every new year comes rolling in, I try and evaluate my financial processes of the previous year, what can be learned from this as well as what can be applied in the upcoming year. I normally come up with a lot of financial lessons during this said evaluation. What went wrong? What can be done better? And so on and so forth.
I learnt many lessons when it comes to making money this year and below are a few things I’d like to share with you. Hopefully, they’ll help you navigate your finances better this coming year.
1. Debt Is Not Good
Many financial experts will tell you how debt is not such a bad thing and how it can be used as a tool that can be used when working your way towards financial freedom. Truth is, in my experience at least, is that debt has the ability to reduce any, if not all, gains you’re hoping to make. You’re like a servant when you have debt. You can only work towards true financial freedom when you expunge all your debt.
2. You Can’t Truly Succeed With Money If You Don’t Have A Plan
If you lack a financial plan, then I’m sorry but you’re looking to fail. If you truly want financial independence then you need to learn how to have family budget meetings, how to create the said family budgets as well as set both long and short term financial goals. Wise men think ahead, only fools do not and even end up bragging about it.
3. Money Doesn’t Equal Happiness
True happiness doesn’t come about from having money, or having things. Having money only makes you want more, simple and plain. You can never really have enough money to say the truth and it’s like a black hole that never ends. True happiness comes from within and knowing this will allow you to have a better life.
4. Avoid Lending Monet to Family And Friends, It’s Almost Always A Mistake
Arguably one of the most important things I learned this past year about making money is that lending it to both friends and family isn’t usually a good thing. By its nature, when money is lent, it transforms relationships of family and friends to one that’s of servant and master. If you’re giving money to friends or family, just give it freely and do not lend it. Oh, and don’t co-sign as well. There’s a reason co-signers are needed.
5. Start Saving For Anything Early
The earlier you can start with your saving, the better things will be for you in the future. Interest earned on money compounds at fantastic rates when saving is done early. This is why most financial gurus rave about compound interest. You can never really be too late to start saving.
Conclusion
These are just but a few of the lessons I’ve learned this past year when it comes to money in general, and not only the making of it. Hopefully, you can now set yourself on the path to financial freedom.
Staff Writer; Earl Jacobs