Personal finance is 80 per cent psychology. The maths behind it is simple and all you need is what you learned in primary school: Don’t spend more than you earn, find the cheapest loan, etc. A child could understand it. What’s difficult is cultivating the willpower and motivation to follow through on common sense rules.
Here’s how to do it:
#1 Think of making money as a form of care
If you think of making money in materialistic terms (e.g. I want to own a mansion, I want to own a fleet of cars) you will often lack the willpower and discipline to save or invest. Surprisingly few people are motivated by these things.
Instead, think of making money as a form of caring and saving as a way of “paying yourself first“. If you cannot earn enough money, will you be a burden on your friends and family? ...
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