What is the value of a good habit? Think of some daily habits, like brushing your teeth, or buckling a seat belt or blush. All of these habits important value to be a part of the life. Not to follow through on some habits can lead to some nasty results and those results could cost us our lives.
Now, transfer the idea of financial habits, such as saving a little money each month, or regularly adding to your 401k or IRA. You will realize that the financial value of good habits can be quite high. On the other hand, if we do not develop good financial habits, the cost can really build up over time. Most people do not even count to invest. The cost of their own bad habits Sure, we get a quick bit of excitement, but not only we will we will pay more for the same result in the long run our own lives. Difficult,
Forget the ads. And what the man in the street (you know, the one with the attitude and bling-bling) wants you to believe, no one has ever "enough" money. It is basic economics people: Remember supply and demand? We always want more bling, we always have a way to find our money we get more bling based on our borders. Of course, if we are not the limits, then we must do something to increase our borders do: better paying job, better investment career as a bank robber (just kidding), etc.
Saving more and spending less are unpopular ideas in American culture these days. Apparently, people are more concerned with how they look than with having control over their own future. But you will see that most rich people are actually very economical, that's how they got rich in the first place. Those who do not generally economical unwealthy again very soon. And believe it or not, income is not the primary success factor in achieving your goals. Many high-income people spend recklessly, that's why we always hear about previously known musicians, actors and athletes who do not have a dime to their names.
Wealth is a matter of discipline and good habits. This applies to both us and our children. In our society children get almost anything they want. But who is to give children what they need, like good habits necessary for a happy, self-managed life? Junior grows up without a sense of reality, he can not manage his life and can not live within the boundaries. What a surprise ... or is it?
Living within limits. Resources are not unlimited and this first good habit is the best. Although we should always try to expand and broaden our horizons, it makes no sense to fool ourselves into thinking the limits do not exist. Our borders Denial is our next steps more difficult, and dig the hole deeper and deeper.
Develop the right financial habits. Adding small decisions. Think: drinking two sodas, or smoking a pack of cigarettes a day can easily provide the difference between to retire when we want, and having to work until we drop. All soft drinks and cigarettes, over time up to hundreds of thousands of dollars at retirement!
Now, practicing good habits does not mean never spending more. Determine what your limits are, make a plan and spend within your own plan. You will find yourself much happier if you do - and you can still see the bling!
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide range of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally and in the U.S
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