Just like many of the decisions we make, financial decisions can be a hard decision to make. Even the financial institutions make a disclaimer to invest at your own risk. So, do all financial decisions we take come with a risk?
Where do I put my money at? What should I do with my money? Is this a good time to invest? How much money should I invest? Should I stake or sell or buy? Should I diversify further? Should I invest in property? Do I need a financial expert to advise? Where do I start to pay off my debts? These might be just some of the thoughts that arise. In my opinion making a financial decision shouldn’t be too hard, if you know what you want your money to do for you and how you handle money.
Know your goal: Is it working towards an education fund, or paying off debts or simply saving for retirement. Know what you truly want. If your goal is long term, then invest in something long term. And if you know are saving for that car, don’t lock your savings in long term assets that comes with a fee to liquidate.
Be honest but also be realistic. Be realistic with where you are right now in your financial journey. The beginning of your journey can be a tough one. You might have to make some changes but it will be worth your while.
Stick to your goal: One of the few reasons why we sometimes do not achieve our financial goals or cannot take a financial decision is because we do not have the whole picture of income and expenditure. And when we do not understand completely our income vs expenses, we are hesitant to make any financial decisions or abide by the committed goals.
Another reason why we do not stick to goals is because there is no real sense of what the end goal might look like. Sure, retirement is still far away and we think we can put off taking that decision to save for retirement for some more time.
Habit of Impulse spending: Yeah, we live in a world where we do not carry cash with us anymore. And we have gotten into the habit of swiping cards for things that we would not need, if we had to pay cash for it. So whenever possible try to spend in cash, that way, you realize you didn’t need that sweater or that pair of really nice shoes at the store.
Whatever the financial decision we may have to take, we must first understand finances and how to handle finances only then can we make the right decision for us at the our given circumstances.
Thank you for reading.
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