4 Pieces of Money Advice That Changed My Life
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In 2005, I began my financial journey when I got a job writing articles about credit, debt, and budgeting for an online publication. It was my first time diving into personal finance, and from my research I quickly learned that most of my money habits were actually wrong.
This eye-opening experience led me to discover new ways of managing my finances, and I’ve been learning more about money matters ever since. Along the way, I’ve come across some invaluable pieces of advice that have truly changed my life.
1. Having money to buy something ISN’T the same as being able to afford it
Like many people, I used to believe that if I had enough money in my account, I could buy whatever I wanted without hesitation. If a pair of shoes cost $60 and I had $60, I’d go for it. This mentality extended to buying clothes, dining out, and indulging in various experiences.
However, as I became more financially savvy, I learned that simply having money and truly affording something are not the same.
For those who don’t know, affordability is being able to acquire or do something without facing negative consequences. Meaning you’re still able to pay your bills, save, and take care of other financial obligations.
Even though I always paid my bills on time, many of my purchased prevented saving as much as I could. This realization prompted me to take a hard look at my finances, acknowledge my shortcomings, and understand why I wasn’t saving enough.
2. The longer you’re not taking action, the more money you’re losing
I recently came across a quote that struck a chord with me: “The longer you wait to take action, the more money you lose.”
This idea echoes advice I received years ago about the negative consequences of financial procrastination, which is the tendency to put off important financial moves and continuously push them to the back burner.
Whether it’s delaying retirement savings, neglecting credit card debt, ignoring disputed charges, or paying bills late, we’ve all been guilty of financial procrastination at some point. Sometimes it’s a matter of not feeling motivated, but deeper issues like feeling overwhelmed or anxious about our financial situation can also contribute.
For anyone who deals with this, keep in mind that money problems don’t magically disappear. Eventually, we have to face them, and the longer we delay, the more it can cost us.
3. Less is sometimes more
As I’ve grown older, I’ve come to appreciate the power of simplicity and living with less.
While more and bigger may be seen as better in society’s eyes, I’ve learned that it’s not always the case. The reality is, simplifying my life has reduced stress and brought me greater happiness.
Having less clutter, fewer distractions, and more financial freedom has made a significant difference. But unfortunately, some people still mock the concept of simplicity.
I remember watching a video where someone proudly showcased their recently purchased condo. It wasn’t huge, but very nice. And since the person was single, the space was adequate for their needs.
Shockingly, though, many people in the comment section ridiculed this person for not buying a “real house.” They didn’t understand why someone would buy a condo instead of a larger single family home, which basically validated the notion that bigger is automatically better – which of course isn’t true.
Not everyone wants the burden and expenses that come with a larger place, and others prefer to embrace simplicity and live within or below their means. For many, less expenses means the opportunity to live life on their terms and enjoy greater financial freedom.
4. Spend less on things, and more on experiences
Research published in the Journal of Positive Psychology confirms what I’ve experienced firsthand: spending money on experiences brings more happiness than buying material things.
Early in my marriage, my husband and I used to exchange anniversary gifts. However, around our tenth anniversary, we shifted our focus to planning meaningful experiences instead. In which case, we pretty much stopped buying physical gifts for each other.
Some people might think this is strange. But what’s interesting is that whenever I think back to previous gifts we’ve bought for each other, I sometimes struggle to remember the specifics. Yet, memories of the experiences we’ve shared remain vivid.
This realization inspired me to shift my spending habits.
By investing more in experiences, we can create lasting memories and find greater satisfaction in life. Keep in mind, too, that experiences don’t have to be expensive or elaborate. Simple activities like visiting a park, going kayaking, attending a concert, or planning a paint night can provide immense joy and fulfillment.