THE Financial Advice That You Need to Hear Right Now

Money talks.

Money makes the world go round.

These are some of the things you might’ve heard while growing up. Finances have taken up all the attention lately especially in the post-pandemic world. As the world continues to fight against the deadly threat, it also faces the harsh reality of the fragile economy and the growing poverty in many countries.

Unsplash | Months of wait and a couple of dozen new vaccines later, the world is finally ready to open again

The Future of Finance

Now many people are hoping to make ends meet by working extra jobs and intense hours but, will it help? For the time being, they might be able to take control of their situation but in the long run, it isn’t sustainable. Logically speaking, once you’ve started working and are paying bills, you have to consider your future; your retirement plan, emergency fund, funds for college, or a mortgage. These things are important and their significance continues to grow. So, how can one manage their finances and become more financially responsible? That, we’ll try to answer.

Does One Size Fit All?

When you reach out to someone for financial advice, they will tell you to “save money and invest as much as you can”. While this might sound like good advice, it’s rarely doable. People have different circumstances; different plans and different modes of income, so applying this advice won’t always prove to be a good idea. However, what WILL be a good idea is if everyone would practice a ‘frugal mentality’.

Pexels | Perhaps pinching your pennies isn’t a bad idea after all

Frugal Mentality

Having a frugal mentality doesn’t entail giving up on everything but, it is about saving as much money as you can. Frugal mentality advocates for people to make rational decisions when it comes to their financial decisions. The main goal is to ‘opt for the base model’.

For example, if you plan on getting a phone, make sure you get something that has all the necessary features without the extra price tag. Don’t let the glamour phones come with now a day cloud your judgment.

One thing that people tend to ignore is the fact that just because they can afford the latest phones doesn’t mean they should get them. Most of the latest technology is just fueled by marketing gimmicks and a few adjustments here and there. They don’t usually bring a lot to the table. So when you think of it, you can save a good amount of money next time you buy something.

Pexels | You purchase something for the need of it, not the looks of the style of it.

Believe it or not, the serotonin you get from buying fancy items only lasts a few days BUT the money you save from not buying those items goes a long way.