How Many Economic Virtues Have You Dominated?
Having a balanced and healthy Financial Life is just like taking care of health: it is not enough to only have the theoretical knowledge, it is necessary to practice a lot! Small attitudes and habits will make all the difference in 10 or 20 years. But are you really playing these economic virtues in your life?
To analyze if you are really going on the right path to Financial Health, let’s give you some examples of virtues that you must master already!
1. Control of the search for instant gratification.
An important component of good Financial Education is the ability to fail to satisfy an immediate desire for something better in the future. Or, in other words, is to put aside immediate gratification and seek greater gratification in the medium and long term. For example, instead of buying the latest mobile phone model that will bring you a social status already, you should invest this money and make it pay much more until your retirement.
2. Understand the meaning of ‘value’.
The concept of value is always something difficult to define. But a good meaning would be: make the most of every single money you spend. It does not necessarily mean buying the cheapest product or service, ever. Instead, it means avoiding luxury for luxury. That is, take into account things like quality, durability and real use of the items we buy.
3. Find things for free.
Is it impossible? No! There is a lot of it for free, or almost for free, that can help us a lot to spend less.
Finding culture and leisure options outdoors or in parks is a good example. Traveling and staying at the home of friends or acquaintances (and then staying at your home also for foreigners) can be another example.
Finding discount restaurants is also a good option as long as the promotion itself does not serve as an excuse to consume above your budget!
4. Ignore what is very popular or what is ‘fashionable’.
Much of our spending is spent on motivational buys. The latest release of brand-name sneakers, an expensive watch, the car of the year with innovative design or the clothing that the famous model has just used in television advertising. Learn to ignore this culture of fad and you will be happier.
5. Stay tuned.
That is always very important in all aspects of our life but ends up being essential for those who have some money to invest.
Being in touch with market trends, exchanging ideas and listening to other points of view is key to keeping your investment portfolio dynamic.