Where To Begin – Personal Finance

Personal Finance is a tough topic to handle, mostly because people don’t like talking about money. Why? Because it’s embarrassing. According to a 2017 GOBankingRates survey, more than half of Americans (57 percent) have less than $1,000 in their savings accounts. Virtually half, or 49 percent, of all Americans are still living paycheck-to-paycheck, according to the same survey. So the majority of Americans have a f_ _ _ _ _  economy. It’s normal to be poor


So chances are, the ones reading this are in the same situation. If you’re not from the US, then this still applies to you though.

Most people spend money they shouldn’t be spending instead of saving and investing. I could end it here, but I won’t. We have to go a little more in-depth.

There’s a psychological aspect to overspending and spending money we don’t have. Money gives us power, being wealthy is fun and it’s something we’ve been told to look for ever since we were in pre-school. Money is the goal. So when someone gives you your first credit card at the age of 18, it’s hard to fall in the trap of overspending. You have the opportunity to spend money you don’t have, and you’re too young & dumb to realise it.

Don’t get me wrong, I think most of us have spent a little too much on our credit card, me included, but here’s the thing. DON’T USE IT!

Most people start their unending debt-cycle the day they get their first credit card. There’s nothing telling you “you don’t have the funds to make this purchase!”. You start spending and spending and in the end you hit the limit, the minimum is too much for you now that you’ve grown accustomed to an expensive lifestyle and so you get another card to pay the premium on the first one. You see where I’m going with this? It’s never going to end unless you get a grip.

Credit cards are loans. We don’t like to think about it like that, but it is. Studies show that you’re overspending by a lot when you use your plastic cards rather than cash. I don’t care whether you’re paying it off at the end of the month. Credit cards is the most advertised thing in the history of humanity, you think you getting a few points mean you’re “winning” over a billion dollar corporation? Grow up. 

You’re loaning money, money you don’t have, to buy stuff you don’t need. It’s time you realise that you shouldn’t be using your credit cards. Pay them off, start with the one you owe the least on and work your way up.

Now we have to face the next financial catastrophe you might be facing, consumer loans. Refinancing these is the only way to get out of the worst interest-cycles at this point. You don’t want to be killed by the interest here, pay your minimum and wait for it’s time to be paid off.

Here’s the deal. We love money. We love money so much that we’re willing to jeopardize your future so that you can buy a $50 dollar pair of shoes. You’re sacrificing future wealth to buy stuff that is killing you slowly, cigarettes, snus, even alcohol consumption. All these credit cards, consumer loans combined with overspending means that it’s normal to be poor. Wake up. 

Pay your loans. Get a grip. Start seeing reality