Money and debt are among the main reasons why we keep what we do not like and are afraid to do what we dream about. The personal environment, the advertising and the media tell us what we need to have if we want to belong to to this society therefore, they say we need to spend and consume a lot. Nowadays, they are driven to live from monthly salary to monthly salary or just live on credit. Credit card payments are debited only after a few weeks, the current account has a dispo, more and more products are offered with a 0-percent financing and you can get easy consumer loans without guarantees.
Such a lifestyle can trigger feelings of stress, anxiety, frustration and helplessness. Being permanently exposed to them almost always has a negative impact on physical and mental health.
There is a way out of this vicious circle. This way is in my experience the best financial tip that you can get and at the same time a wisdom of life:
Live modestly and humbly!
That means nothing else than spending less money than you earn.
There are two screws available for you to work on. Either you try to earn more, or you spend less. I recommend focusing on consuming less as it is easier to achieve. A higher salary usually means more work and stress. Moreover, it rarely leads to a higher savings rate.
If you spend over your live ratios, just spend less than you earn, and you will profit from it for sure on a long-run. You will gain financial and personal freedom. There will be more options opening-up for you. Believe me you will feel more self-confident, balanced and happy in your life.
Even if you save only $50 a month, sooner or later you will be debt-free and you will build-up a financial cushion. Consider the monthly amount not as a savings, but as an investment in you and your future self. Find your mix of call money, time deposits, equity funds and other forms of investment that suits you and your life situation best.
Since I can think, I try to live consciously and humbly. So, it was possible for me to realize my dreams. As a student, I was able to buy a high-quality hi-fi system. As a student, I traveled through Europe every other weekend with the InterRail ticket. At the age of 20, I decided to visit friends and travel around the world for a year and a half. In ten years, I plan to quit my day job to retire early and follow my vocation as a freelance author.
Of course, there are circumstances in which you spend more than you make for a certain amount of time. This is usually the case when you receive no or only a small salary, for example because you are still in training, as I voluntarily take a longer break, self-employment or for health reasons your work time must be shorter. Such phases are much easier to survive with savings or even possible with a financial cushion. In order to be able to afford such a thing in the double sense, one should already have lived under such circumstances and being aware of the difficulties that life can hold for you.
Now you may wonder if a mortgage acquisition would make sense, at least for your own realty property. That should be well considered. But I can not imagine that for myself. I grew up in a house that had to be paid off for many years, and I have some friends doing the same. So, I know the restrictions resulting from it very well. Many are unaware of what they are getting involved into with and what the permanent burden of debt means for your future life. If you are honestly thinking about it, you will find out for yourself if your own four walls are really a lifelong dream or just a fantasy of yours.
How to live concretely under his circumstances should not be the content of this article. But of course, minimalism is an integral part of the path to personal and financial freedom. Minimalism also means spending only money on things that you really need and that make your life easier and better at the end.
What are your life choices, and do you prefer a minimalist lifestyle or a dept enslavement for your life? Feel free to share your opinion here below and share my articles within your social media community. Thanks.