Sometimes it’s more effective to be smart about money than it is to be rich. I mean, nobody is going to argue that being rich automatically makes you happy or successful, or that being happy and successful are going to make you rich. But at the very least, if you choose smart financial perspectives as the groundwork for some of your life, chances are you’ll move toward self-actualization more readily than otherwise.
And five of these perspectives could be listed as understanding that credit cards are good, knowing that you can live cash-only if you want, keeping a savings account, learning about interest rates, and paying attention so that you live within your means at any given segment in your life.
Credit Cards Are Good
Some people have an unnecessary fear of credit cards, and that holds them back from doing things (or perhaps buying things) that they would otherwise enjoy. You can learn to use credit in a way that benefits your life, benefits your ability to get loans if you need them, and benefits you psychologically knowing that you’re responsible enough to use money that you don’t necessarily immediately have on hand.
Knowing How To Live Cash Only Is Good
Every once in awhile, make sure that you coordinate a time for yourself to use cash only when living. This reasserts to your mind that money is, for better or worse, a physical object. It’s not imaginary. Yes, it can be controlled digitally though abstract numbers, but knowing that you can get resources (and sell resources) with dollars, cents, or whatever other money you have on hand will give you a positive perspective on the nature of modern financial life.
Having a Savings Account Is Smart
No matter how old you are, starting a savings account is a good idea. Even if it’s just a little bit of money, knowing that you are responsible enough to put cash where you have access to it (but not necessarily easy access to it), gives me a specific type of peace of mind. As far as perspectives on money will go, the savings account is always a wise cornerstone.
Knowing About Interest Rates Is Important
There are lots of situations in life where some amount of money that you’ve borrowed will have an interest rate attached to it. This could be a school loan, a home loan, a credit card debt – the list goes on. But if you don’t know what interest rates are or what they do, you can quickly fall into a trap where you end up paying more toward a loan than you intend.
Pay Attention to Living Within Your Means
And finally, no matter how much money you have, or you make, if you approach life from the perspective of living within your means, then you’ll generally have a positive attitude about day-to-day endeavors. The further you get from living within your means, the faster your happiness can take a nosedive.