Millennial Money: If You’re Tired Of Your Money | Lifestyle
The idea of getting wealth in a flashy way is not new. After all, Charles Ponzi, named after the Ponzi scheme, tricked investors over 100 years ago with a get-rich-quick scheme built on a false foundation. Today, speculative investments, MLM companies, and other dangerous efforts to make a profit still set a fascinating trap.
You can always leave money in your interest-bearing account and take the time to do that, but isn’t it perfect for an exciting party conversation? Therefore, it opens and closes the account. We invest in hot stock and sell them at the first sign of bad news. We ruin money because it is believed in our minds that it takes effort to increase wealth.
“In almost everything else we do, the activity is rewarding. If I want to be a good runner, I should run every day. If I want to be a good painter, I always have to practice. “Morgan Housel, a partner of The Collaborative Fund and author of The Psychology of Money, said in an email. “But if you want to be a good investor, the best thing people should do is leave it alone, not trade, mess around. It’s so unique to investing that it’s intuitive. I think it goes against. “
In a world full of financial influencers who boast of buying NFTs and touting their friends, managing money in a way that almost yawns is perfectly fine. This is the reason.
Being bored gives you more time to live your life
Dealing with your money is a necessary chore and it’s not exactly fun. Thankfully, we live in an efficient era. In minutes, you can set up automatic money transfers that quietly send cash to separate accounts that serve a variety of purposes. Why keep money on your to-do list when it can literally happen on its own while you sleep?
“Money is a way for you to live your life, not life itself,” said Meg Bartelt, a financial planner and founder of Flow Financial Planning, in an email. “The more complex, modifiable, or frightening your investment is, the more time you spend working on it and thinking about it, and the less time you spend on your life.”
Being bored keeps you away from making rash decisions
It’s important to check your investment account regularly, but being obsessed with all market movements can be exhausting and counterproductive. It can lead to reactive decisions that hurt your wealth in the long run.
Choosing to be boring with your money is an exercise to let go of the illusion of complete control. Yes, there is always 24-hour financial news, but not everything that is happening in the bigger economy affects you as an individual. Turn off mobile news and stock market alerts to avoid itching in response. Instead, carefully decide when to watch the news and check your account so that you can reduce stress and get information.
What does boring money management look like?
— Make a plan that you (almost) stick to: Bartelt is because everyone feels the same emotion, or fear, whether the client is avoiding money or chasing it relentlessly. I think it is.Antidote Financial planning Based on specific goals and values. “It’s encouraging to make a plan,” she said. “People relax when they make a plan, or when they know to make a plan in hell.” Savings and investment goals depend on what you plan to spend in the short, medium and long term. .. Leave room for wiggles due to life changes and other uncertainties, as they are guaranteed to happen.
— Preparing for emergencies: There’s nothing particularly sexy about emergency funding, life insurance, and the latest will, but if something unexpected happens, these things will keep you financially stable. Useful for.
— Money Automation: Automatic transfer of funds from a check to a savings account or from a check to a checking account. Contribution to a 401 (k) through your work is also automation. Because that money comes directly from your salary. Make regular donations to different accounts, and as your budget allows, increase your accounts as your goals change and your nest eggs will grow.
Once you have a boring financial base, you can sprinkle more risky investments as needed. But stay true to your plans. “To stay true to our values and goals, we need to actively and continuously ignore distractions, charlatans and blowhards everywhere,” says Bertelt.
This column was provided to the Associated Press by the personal finance site Nerd Wallet. The content is for educational and informative purposes and does not constitute investment advice. Sara Rathner is a writer for Nerd Wallet. Email: [email protected].. Twitter: @SaraKRathner.
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