Three Things I Have Learned About Money
The Simplicity of Personal Finance
Over the course of the last several years, I have read a lot about personal finances and I have written a lot, as well. Here are three things that I have found to be true about money and how to best handle it in your life:
Savings is Good and Debt is Bad
This seems pretty basic – right? So many people want a big house and lots of stuff to put inside and just can’t help themselves. They find it very difficult to connect these behaviors with long termed negative consequences. I have said it a thousand times but every single dollar that you spend is a “yes” decision and a “no” decision. You are saying “yes” to your purchase and you are saying “no” to your savings account or debt reduction.
Little Decisions have a Big Impact
Be smarter in your “little” decisions and you can completely change your world. Dave Ramsey always says, “Children do what feels good. Adults devise a plan and follow it.” If you can stop spending money on those little silly things (I gotta have my Starbucks!) and making smarter little decisions, you will learn to make smarter decisions with those bigger things in your life too.
Money Really Doesn’t Buy Happiness
There are very few things that you can purchase that can truly bring you lasting happiness. My wife and I enjoy going out to dinner. It, obviously, is much more expensive than cooking at home but it is something that we do because it is tremendously convenient. I can’t tell you one single dinner that has brought me any lasting joy. The food is good and I enjoy her company but it doesn’t really bring us happiness. Honestly, we have found that having lower debt and a few extra dollars in the bank has brought us a sense of peace and security – more than any single “thing” that we have ever purchased.
I know that these things are not earth shattering but they are seldom followed. The simplicity of handling your money properly isn’t easy but it can make a tremendous impact on you and your future financial position.
If this makes sense to you but it just seems impossible or overwhelming to you, give us a call and schedule an appointment. We are experts at it and will be happy to offer you some basic direction and advice. It is what we do at Hollander & Associates.