Personal Financial Horrors to be Avoided
Although there are many horrors personal finances, I leave you with 9 “horrors” essential that we avoid if we want to achieve financial peace:
1. No Planning
More than 2,000 years ago a man named Sun Tzu said: “He who is always prepared and expect the unexpected will be victorious.” The General and war strategist knew that preparation was important.
How many of us find ourselves in the situation of not having enough money to meet our demands? Or those who find that the debts are to the clouds. In the absence of a financial plan we are not aware of available resources we have, we need and do not need to achieve the financial goals you want.
2. Risk is Bought and Paid Work
With that attitude we take the portfolio just frivolous to spend. We work to spend. We assume that the work there until eternity and the day has 25 hours just to spend. Thus we consumerist reckless and less cautious.
3. The Culprit is Credit
It’s like a friend corrected me when I told him that computers are problematic. It is not the computer but who the program. The same goes for credit. No credit is easy access to financing the cause of many of our financial difficulties but the one that handles credit.
4. There is a Budget
It is clear that a person who does not make a plan, it is less likely to make a budget. The need behind the budget, not make life miserable, but a technique invented to help us relate what we want with what we have available.
Whoever intends to increase wealth is managed with a budget.
Ask yourself what would the companies, governments and institutions, but make use of this technique?
5. Do not Read what we Signed
There are many of us who have to see how the monthly card balances go up, up and up. Do not take the time to find the mortgage we buy, the investment we made or to whom we give our money. And the problem is that many of the decisions we make may not be reversible because they signed something that does specify what we thought was gone.
They say that good and the poison come in small packages. It is also expensive in small print.
6. We are the Adventurers of the Midwest.
No doubt we put the hat “cowboy”, frowned and chewing snuff. With a rapidity that even Billy the Kid would stay “kid”, paid the “357 card? dollars or a machine gun. Every time we go to town called “Central Commercial” welcome us with open chest wanting to be the victims of our bullets with the brand of “Grant”, “Lincoln” and “Jackson.”
In the distance is the widow weeping inconsolably prudence.
7. We Won a 2% Pay 18%
What about those who are conservative in lending money but very aggressive when it comes to paying debts. When we invest we have an extreme risk aversion that we acquire a return scraping the inflation but food and entertainment, finance card where we pay a high interest.
8. We do not want to Learn
“As there is greater expansion in the availability of credit, most important is financial education. In this increasingly complex and competitive market such as financial services, it is essential that consumers acquire the knowledge that will enable you to assess the best product or service offered by the market and determine which meets their needs in the short and long term. ” Alan Greenspan, April 8, 2007.
The democratization of knowledge of personal finance is one of the most important challenges in today’s society. It is the new war on illiteracy century. The economic crisis has thrown up three key issues: a more complex financial world, we do not understand the financial language and society increasingly demands our individual responsibility for our decisions with money, regardless of whether the results were good or bad.
9. We Avoid past Mistakes
“Those who do not study history are doomed to repeat it,” said the philosopher Santayana. And it’s true. There are many common mistakes so they can be avoided by reviewing what we did. And not just ours, it is also true of others. The Fuscones errors, the Walkers and many others, rich and not so rich, are classic case studies need to be in our library of personal finance. The story of another may be our compass, our crystal ball to the future and our salvation.