Money is an object we put on a pedestal, worship, build great monuments to and focus our lives around. We also created money and all the ideas surrounding it. The number one rule about people and everything they create is: sometimes they’re dumb.
Whether or not money itself is dumb seems like too much work to write about and the research would fill the page with philosophical theories, thought experiments and complex economic phenomena. So instead, I am going to DEBUNK some of the money myths we have made up for ourselves. Let us reach into the lore of money and find the lies hidden there. Zeus is not throwing lightning bolts and putting your money in a shoebox under your bed only gets you a box of cobwebs.
We hear it all the time: those smart guys on CNN talk about the national debt of this and that nation and all the financial implications around individual spending power. So that’s it then! Debt is evil. All debt, always.
Well, ignoring, for now, that pesky credit score stuff, all debt is not equally evil. Some are Captain Hook’s birthday party evil and others are Medusa wearing bright green crocs evil.
If you have debt piling up all around you it might be best to focus your attention on the ones likely to deal more damage. Your credit card debts can have interests of 15% which can turn R1000 into R1750 very quickly. Compared to that your Student Loan’s measly 3% is not that intimidating at all. Save money by dealing with credit card debt first.
Rich people have money to save and are financially secure, right? Rich people earn good salaries. So to be financially secure and able to save I need a better Salary first. I just don’t have the money right now.
You don’t need an excessive amount of money to plan for the unforeseeable or to save for that trip. All you need to do is live within your means. What do you earn? What do you want to save? What do you have left? Now deal with it. A couple of saved expenses can go a long way to achieving living within your means.
This is kind of a two for one. You don’t need to save like Bill Gates. You need to save like you. A person may be very rich, but drowning in debt and at the point of bankruptcy… But just look at that Car, those shoes, that watch! In the next blog, we are going to go into detail about how to save money even with very little at your disposal.