Having a balanced and healthy Financial Life is like taking care of your health: theoretical knowledge alone is not enough—you have to practice a lot! Small attitudes and habits will make all the difference in 10 or 20 years. But are you really practicing these economic virtues in your daily life?
So that you can analyze whether you are really heading in the right direction toward Financial Health, we will provide some examples of virtues that you should master right away!
1. Control your desire for immediate gratification.
An important component of good Financial Education is the ability to forgo satisfying an immediate desire in favor of something better in the future.
Or, in other words, it means being able to set aside immediate gratification and pursue an even greater reward in the medium and long term.
For example, instead of buying the latest cell phone model that will bring you immediate social ‘status’, you should invest that money and make it grow much more by the time you retire.
2. Understand the meaning of ‘value’.
The concept of value is always difficult to define. But a good definition would be: getting the most out of every dollar you spend.
It does not necessarily mean always buying the cheapest product or service. Instead, it means avoiding luxury for luxury’s sake. In other words, taking things like quality, durability, and how much we actually use the items we buy into account.
3. Look for free things.
Is that impossible? No! There are many things that are free, or nearly free, that can help us spend less.
Looking for cultural and leisure activities outdoors or in parks is a good example. Traveling and staying at the homes of friends or acquaintances (and then hosting foreigners in your home as well) can be another example.
Looking for restaurants with discounts is also a good option, as long as the promotion itself does not serve as an excuse to spend beyond your budget!
4. Ignore what is very popular or what is ‘in style’.
A large portion of our spending goes toward purchases motivated by fads. The latest release of a brand-name sneaker, an expensive watch, the latest model year’s car with an innovative design, or the outfit the famous model just wore in a television commercial.
Learn to ignore this fad culture a little, and you will be happier.
5. Stay informed.
This is always very important in every aspect of our lives, but it becomes essential for those who have money to invest.
Keeping up with market trends, exchanging ideas, and listening to other points of view are essential for keeping your investment portfolio dynamic.
