Worst Personal Finance Mistake
By Gene Khalyapin - Published on
My grandpa once gave me the most important piece of advice on personal finance:
“You are young - save as much as you can. Cut your spending to a minimum, cut life activities - and save it all”.
My grandpa was wrong.
No, “save as much as you can” is not wrong and may be a decent advice for some. He was wrong in making me focus on MONEY vs. LIFE.
#1 Mistake: Prioritize Finances over Life
Don’t do this one! Personal finance is just a tool that helps you live the life that you want.
Your life comes first. Always! Your life priorities come first. Once you settle on that - you can think about personal finance and how it can allow you to live the life that you planned.
Don’t: Don’t mold your Life around your finances.
- Don’t miss the important life events - the events that you will never get later, no matter how wealthy you become.
- Don’t miss that very important fishing trip with your little son just to save an extra $100 - you’ll never get this time back!
Understand what’s important for you in Your Life and only than think about the ways how finances can help you get that. Money is not a goal in itself - it’s a tool that helps you live a fulfilling Life.
The worst personal finance mistake is missing on the important things in Your Life!