Most of the time, families will unwittingly teach their children to become poor. This is obviously not a lack of love, but simply a lack of knowledge. Because you see, most children reproduce what their parents showed them, and often do worse than them.
The problem is that many households do not know or little how to manage their money and this habit unfortunately has a chance of being transmitted to children, grandchildren, great grandchildren, etc.
So what does it mean to be financially smart?
Well, it’s simple: do you have a smartphone that works correctly and do most of the things you do with a smartphone (calls, SMS, email, whatsApps)? Then you don’t need the latest Samsung Galaxy S8.
No matter what your friends, colleagues, family say. Don’t succumb to the temptation of a gadget that will go out of fashion in just a few months. You can also follow the Evergreen Wealth Formula. Are you wondering Is the Evergreen Wealth Formula a scam? Well absolutely not.
Limit your expenses
- No need to have made compatibility studies to achieve this. Just use two simple concepts,assets and liabilities.
- The assets are all your incoming money (wages, refunds, tontine, interest, rent received for the lease of one of your homes).
- The liabilities are all cash outflows (utility bills, food).
Using these two things, make a table and list your assets on one side and liabilities on the other:
Remaining = Assets – Liabilities
- If this difference is negative, then it is high time to close the floodgates and identify all those Passives that are pulling you down. You will find that most of them are completely unnecessary.
- If you are in debt, know that it is not inevitable and that you can get out of it. Quickly read the article we wrote for you, which will explain how to pay your debts and regain your freedom.
- Once you’ve identified your bad liabilities, delete them.
If you still have no idea what to remove, let me ask you a few questions:
How many times do you watch TV per day? And which programs interest you the most
How many people do you need to contact per day? Do you use your cell phone to go on the internet?
Can you cook?
Answer these questions honestly, as they can help you save a lot of money every month. Indeed many people subscribe to TV programs from which they ultimately do not or little benefit.Many use mobile plans that are ill-suited to their habits or are too lazy to change operator (thanks to free most of them have lowered their prices in France. Don’t wait to change their mobile plan). Many others spend their weeks in restaurants instead of cooking “homemade” and economical dishes.