Of Dumb Money Moves…

Honest stories about my dumb money moves

People who live far below their means enjoy a freedom that people busy upgrading their lifestyles cannot fathom. — Naval

Another dumb money move

In my previous job, I was in charge of the petty cash. One time I was sure that my boss gave me $100. I remember that it was a Friday. I needed to buy office supplies that would cost $20.

The sad reality is that we all have a natural tendency to compare ourselves to other people. A paper written by Ada Ferrer-i-Carbonellin published in the Journal of Public Economics found that people’s happiness and sense of self-worth are equally impacted by two factors. How much money they make.How much money the people around them make. — Ben Le Fort

How do you prevent yourself from getting trapped by lifestyle hyperinflation?

1. You need to have a strong ’why.’

Ben writes that the best way to win this way is getting a psychological solution because it’s a psychological problem. Constantly feeling like you need to own the next shiny thing is an inescapable trap.

  1. I have been poor before. I do not want to taste poverty 2.0
  2. I want to always be 100% financially responsible for myself.

A lot of times, we are angry at other people for not doing what we should have done for ourselves. — responsibility

-The sun and her flowers, Rupi Kaur

2. Learn to postpone gratification.

One of the dangers of lifestyle hyperinflation is that it leads to debt. You have to borrow (cc me with my bag!) to keep up. And the worse part about debt? It begets more debt.

You either suffer the pain of discipline or the pain of regret. Pick a side. — Jim Rohn

3. Educate yourself ruthlessly

Last week, I shared how to do this.

4. Audit your finances regularly

I shared a guide on how to do this on a monthly basis here.

5. Automate your savings

My current read, Nudge by Richard H. Thaler & Cass R. Sunstein has given me an even deeper understanding of why automating savings is important. Here’s an excerpt from the book;



Your voice of reason before you blow all your money this weekend! www.thewealthtribe.com

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