Set your priorities to avoid distractions that ruin your finance
Somehow everyone aspires to a better life, so it is normal that people want to live better and have some amenities that offer a better quality of life. However, people often exaggerate. Then, they start spending uncontrollably, making impulse spending while others simply feel they must have that item and spend any amount of money they have.
Sometimes this obsession with immediate enjoyment, it distracts them from the things that should really matter. They are distracted, for example, from saving for retirement. This distraction makes them forget about anything else, because they are so in debt they can’t pay the house insurance. This is because many people find it unimportant, when such protection should be a priority.
All the above are distracting because they remove the focus of what is truly important to people. The funny thing is that many people do not know what their priorities are and so it is very easy for them to fall into the trap of consumerism. I’m not a minimalist or anything like that, but I understand that many times people have too many material possessions, while many of them are not even used regularly.
I have an acquaintance that has his house full of ornaments, but has fallen on hard times and can not afford college for their children, because instead of saving, he spent his money on these ornaments. The funny thing is also that his home, even if it looks nice, is too full of stuff.
That is unfortunately the story of many people: people who end their working life with very few resources to remain self-sufficient; people who paradoxically had many things in their life, to end up with very little to go on living with the accustomed standard of living.
Setting priorities is basic
It’s so important to be clear about your priorities and your goals for the short and long term and generate a plan to make sure that you are covered in the future. Personal finance is about precisely that. Remember that money is a means to achieve what is important to us.
Therefore, you should use it properly. Have clear priorities and goals, and define the amount your savings should reach every month (a wise investment is the one that considers the potential and performance that is relevant to long-term goals such as retirement). Do not waste any more time and get down to work. Whatever happens, remember what your priorities are.
No, a priority is not buying a new flat screen; you can do it as long as it does not distract you from what is really important. Thus your life may be full.