Prologue:
The book “The Dumb Things Smart People Do With Their Money” written by Jill Schlesinger tells us about the common myths that need to be avoided in finance and provides us the ways of managing finances in life.
2 Basic Principles:
The first principle is don’t compare your financial state with others because we have different circumstances and needs based on our lifestyles. Don’t try to compete with other's economic success and focus on improving yourself without comparison. The second principle is to follow your goal. The main goal in finance should be focused on leading a happy life without financial problems so, take only acceptable risks.
Financial Myths:
Sometimes, people from modest backgrounds
become fixated on earning money due to their unhappy childhoods. This can lead
to two harmful attitudes. Some individuals develop an overspending habit in an
attempt to make up for what they lacked growing up, while others feel guilty
and criticize themselves for buying anything expensive. Both of these attitudes
can be problematic. It's important to first spend within your income and then
recognize and respect your own needs. Remember that your worth as a person is
not based on material possessions.
“ To lead a successful life people should
understand that money is just a medium of exchange, not an obsession ”
Financial burden:
In
some cases, parents think providing education to their children in expensive
prestigious universities can improve their lives. But, in truth instead of
their years of education in uninterested universities, their passion in their interested
studies such as a sewing class for 6 months can help them with a better life.
They minimize the student loans for universities thereby reducing their
financial burden and helping them lead a confident and stable life.
Survivor Bias:
Survivor bias occurs where people get excited about the successful stories of others without taking account of the failures they faced to achieve that success. Easy money is the biggest illusion to lure out people who feels insecure in their financial status.
“ In truth there is nothing called easy money,
you get paid for what you work for ”
Conclusion:
To
conclude money should not be your reason for stress, money is neither sacred
nor taboo. Failure in financial condition doesn’t make you a fool, lazy or mediocre
person. Your loss in monetary possession doesn’t reduce your inner worth, you
can always start over whenever you are ready with a goal and plan to achieve
that goal.
