Guide to personal finance – Part 4

As a guide to personal finance you should first be aware of the things that will help you spend your money and the fast ways of lossing it. Everyone knows the rules like saving for your goal, invest your money wisely and things like that. But it is human nature to break rules.

Learning about personal finance is something that every person should have been taught as a child once given an allowance or pocket money. Okay so everyone has free will and can do what they like with their money and then there is also those who no-matter what you say to them or teach will never be able to comprehend monetary situations but working for it and spending it.

But as a child with the knowledge of making good decisions with their pocket money or at least knowing the consequences of buying something with it; At least they have the start of an ability to be financially wise the older they get.

The ability to save money is an easy method to achieve especially if it is towards retirement, a holiday, your first home or any type of goal that involves money. But funny enough it is quite a hard thing to do for most people to start doing or to even keep doing without dipping into it every so often. This is coming from experience.

Never keep your eggs in one basket. This is a saying that I have heard over the years time and time again. In most cases this is actually true. When dealing with things like insurance, investments and banking. There are important reasons for this and it should be investigated first before actions are taken to go ahead with your plans in these areas. Remember that no matter how viable something seems, you should always think of the out come both good and bad. Ask the questions that others would generally not ask. And look beneath the surface of every venture as things are not always as it seems.

The richest people in this world are sales people. Not everyone has heard this saying unless you are a sales person. There are 5 things that can work on people to make them part with their hard earned money. One is the “Jones Theory”. This is something kids use on parents when they see a toy they want because there friends have them. Or as an adult your neighbour or friends have one so why not get one yourself, Right? This is a trap that most fall into so be careful. Especially for financial reasons the cost of getting it is out of your means of affordability.

There is the “3 F’s” known as Feel, Felt and Found. When applied in a