Anytime I see a financial adviser advise like you shouldn’t buy a car and a house because it is a liability and it sinks your money It always leads to so much argument. The main reason this leads to so much argument is that most financial experts always forget the emotional aspect of money. Spending money comes with a lot of emotions and most people don’t learn not until they go from being rich to being poor. This is where they learn all their lessons, advising someone with zero experience with money will always lead to an argument, unless they are ready to learn.
Most people will always go for their want when they lack experience with money, it would be difficult for you to advise such people because they are filled with emotions. When people make their first money they are always going after making their fantasies a reality, that’s why you see people making statements like if I should make money today I will first buy a car. Most people live in their imaginations having plenty of cars, different houses, living big and immediately they have access to money these are the things that they are likely to make their reality without considering they are cash flow.
Is it possible not to be emotional with money
It is almost impossible not to be emotional with money. We have two types of people that are not emotional with money. The number one set of people is those who have experienced how quickly money can disappear. This set of people understands that when they make money, they have to keep growing their investment so that they can have enough cash flow in their hands. Experience has taught them that if they don’t have plans for their money, there is a good chance that it will disappear no matter how much it is.
The second type of people who are not controlled by their emotions are those people whose parents taught them financial literacy when they were young. It is easy to teach children but it is very difficult to teach adults. When you advise adults on how to spend money It always leads to arguments and most adults don’t have financial education. Adults will always respond with general beliefs, forgetting that most people in society don’t have a good background when it comes to financial literacy.
It is up to you
I believe what works for you might not work for another person, the essence of financial literacy is for you to be able to handle your money properly and this doesn’t mean that you have to follow exactly what your teacher is telling you, but it is very important to know that financial literacy we help you in dealing with your emotions. It will be easy for you to spot bad decisions that are based on emotions. Most adults might find it difficult to learn how money works but if you are determined you might be able to learn which makes you better than 70% of people in the world when it comes to making financial decisions. Emotion is a big part of Finance that we cannot eradicate, but with good knowledge, you’ll be able to handle it well and make decisions that will be beneficial to you for a long time.
Thanks for your time.
@tipu curate
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The car i know its a liability but the house is must because if a person does not have a standard source of income how then can he fuel the car