Talking about Personal Finance / Finance Tips with your friends is considered a taboo subject. It is much easier to talk about Physics than about money.
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If you consider yourself a very good friend, having this kind of conversation might help make your friendship even stronger and your finances even better.
So what are the Personal Finance Tips you can give as a friend?
Create a Budget Plan
- List all your recurring monthly income
- List all your recurring monthly expenses
- Rank the expenses
- Remove the items that you can live without
- The income side must be higher compared to the expenses side
Practice Delayed Gratification
Apply one of the most famous psychological tests of all time, the marshmallow test.
In the test, a child is given one marshmallow. And if he/she could resist the temptation of not eating it for 15 minutes, he/she will be given another marshmallow as a reward.
If you want to spend your money on something, mull it over for a week. This gives you time and room for a new perspective. Chances are, after a week, you likely don't want to spend money on it anymore.
Get Out of Debt
This passage from the Bible is enough.
Proverbs 22:7 The rich rules over the poor, and the borrower is the slave of the lender.
Practice the Art of Giving
Most if not all religious denominations give a lot of importance to the art of giving. This teaches us to help others, especially those who are less fortunate, without expecting anything in return.
Tithing is one the many forms of giving.
Improve Your Money Mindset
Money is the root of all evil. We now consider this statement as senseless. However, in our subconscious, we are affected by it because we grew up hearing this statement. Our brains had been wired that having money will turn you into an evil person.
You need to change this warped perspective about money because it is one of the reasons that is holding you back from earning more.
Accept the fact that while you are living in this world, you need money to get by. Bless yourself first so that you can be a blessing to others.
Takeaway
When it comes to finances, you are the sole responsible for improving your situation. Your friends can only give you their advice but making things happen will still and always will be your own.
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