We all desire financial security yet achieve it differently. The plans we make, and the actions we take to feel secure can vary widely.
We found 10 unconventional actions people took to build their financial security.
Intrigued? Read on
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Health is wealth – Research states that financial security is inextricably linked to good physical health, mental health and quality of life. Taking care of these can positively impact financial outcomes. We love @Headspace and @FitbodApp #HealthyLiving
👇 @lizandmollie
Minimalism – is about owning less, reducing distractions, and understanding what we value. That drives how we save, spend, and invest. A minimalist lifestyle with money-management skills can truly enhance financial wellness. We love @TheMinimalists #minimalism
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Uninstall – out of sight keeps it in the pocket. Uninstalling or hiding apps that trigger emotional buying decisions can help control impulses and expenses. Do you really need a fourth pair of sneakers? We love @freedom, @forestapp_cc and @rescuetime
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Atomic investors – investing a fixed sum each month in a mutual fund or an index fund can help compound investment returns. This way, one can avoid trying to time the market, and with reinvestment of returns it can significantly grow the investment value over time. See @acorns
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Bargain hunters – Never paying full prices. There are deals on virtually everything, from shopping, eating out, traveling, and services. There are apps that tell you the best time to buy and coupon codes to apply. @honey is interesting
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DIY - from building furniture to home improvements, to makeovers, DIY has become a way of life to save money and do it your way. Watch @DIYNetwork for lot of cool ideas. #DIY
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Yes, to no pay-rents – 40% of young adults in the US now live in multigenerational households. It has helped them save on rent and partially pay off student loans and save for a down payment on a car or home.
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Time to Excel – Measure it to manage it. Tracking expenses helps in being aware of spending patterns, stay within a budget, and meet financial goals. There are amazing tools to track spending – @mint, @goodbudget, @expensify, @ynab etc.
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Money talks – Transparency and communication about money among couples can help accomplish financial goals. It builds financial management skills and creates mutual trust and cooperation.
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I quit – People desire for better control of time and mental health. Many have started side hustles, and creator endeavors for additional income. This sense of purpose and ownership can enable good financial decisions in the long run.
👇 @ash_lmb
Money 101 – Financial literacy enables financial security. Learning how to budget, spend, save, and invest can help form a strong foundation for future success. Follow @relaytime for more.
👇 @ash_lmb
Tim Ferris @tferriss interviewed Morgan Housel @morganhousel, the renowned author of Psychology of Money, one of the most insightful books on behavioral finance.
We listened to this 3-hour podcast and here are the insights that resonated with us.
A thread ....🧵
1/ On passing wealth to kids
If you are fortunate enough to save money, make sure to pass only enough to have a safety net without giving them fuel for entitlement. As Buffet said, “Leave enough money so they could do anything, but not so much that they could do nothing”
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2/ On gaming the market
Market cycles are unique. 2020 biological crisis was not the same as 2008 financial crisis. Even the most rational investors gave in to fear and panic. We respond to risk in different ways. Be greedy when others are fearful is easier said than done.
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"Circle of competence" is a mental model introduced by Warren Buffet in a letter to Berkshire Hathaway shareholders in 1996. The model can be applied in many areas of life, career and investing.
So, how can you use this mental model to make great decisions? A thread... 🧵
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1/10
Your circle of competence represents what you really know, versus what you think you know.
The circle is surrounded by a larger circle of subjective, and often over-inflated belief in one’s understanding and ability.
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2/10
We build our circle of competence through academics, self-study, environment, and life experiences.
@naval talked about this concept as “specific knowledge” that can be developed by one’s innate talents, genuine curiosity, and passion.
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