Are You Buying Debts?

As soon as we graduate from school, we start working. This is the time when you are young and just trying in the real world. At this stage, we don’t overthink about saving, investing, and making money. We are more tempted to spend the money we get. This is a good feeling when you don’t need to ask for money from your parents and use the money for your shopping needs.

The temptation to buy whatever you see, instant gratification in the early stages of life can create a significant impact on your life. Today’s marketers are getting smarter; they target almost all people who have income. Why am I saying this? Well, that’s easy. We are now more motivated to buy DEBT!

We can buy almost all the items now from electrical products to cars to housing. We can even buy a vacation that we never imagined. Sellers currently offer loans to anyone who has income. They make monthly payments look very attractive so you will consider purchasing a product.

What you don’t consider are the total loan repayments and your long-term financial goals. Small loans can increase to produce significant investments. We fall into the category where we are rich in assets but poor in cash. If a loan accumulates quickly, your assets can turn into your long-term liabilities. It is impossible for you to get a positive net worth.

When you know your net worth, you will automatically be interested in your annual cash flow. Some people monitor their monthly cash flow. When you are concerned and worried about in and outflows, you can better manage your cash flow. Remember this golden rule; if you can’t control $ 2000 now, you will never be able to handle $ 20,000 or more in the future.

Investment planning, insurance planning, retirement planning will only be productive and feasible when you have excellent money management. Because you know how to manage cash flow, you will save more money. The extra savings you have will accumulate, and you can start building your wealth. You need money to make more money.