Basic Money Skills You Need To Know

People often struggle with spending money even when they have the means to do so, as they find comfort in having a pile of savings. It is important to find a balance between saving, spending, and giving, and to enjoy money responsibly.

💰 People find it difficult to release money even when they have savings, especially if they are wired as savers.People who are wired as savers find comfort in having a pile of money, which makes it difficult for them to spend even when they have the means to do so. It is a struggle to release money that goes beyond financial concerns and becomes an emotional attachment.
💸 Saving, spending, and giving are three fundamental money skills that everyone possesses to varying degrees. Achieving a balance among these skills can be challenging, with some individuals, such as the speaker, needing to put extra effort into developing the skill of saving. Each person naturally falls into one of these categories, but finding equilibrium among them is crucial for financial stability and overall well-being.
🚗 It's crucial to enjoy some of your money responsibly, like investing in a reliable vehicle, while also prioritizing saving and giving. Engaging in purchases that enhance your quality of life is an integral aspect of financial well-being. For instance, investing in a dependable car can be a prudent use of funds. Not only does it provide practical benefits such as transportation and safety, but it also contributes to overall satisfaction and convenience in daily life.
🛍️ There's nothing inherently wrong with spending money on luxury items, as long as it's done in harmony with saving and giving. It's unjust to critique someone's spending choices solely based on their financial situation. What may seem extravagant to one person could be entirely reasonable for another, considering factors like net worth and income. Furthermore, indulging in occasional splurges can contribute to mental well-being and happiness, as long as they are balanced with responsible financial practices.
💼 Personal financial decisions should be based on individual circumstances and values rather than external judgments. The scale of purchases ought to align with one's financial situation and net worth. Criticizing others' spending choices without considering their unique circumstances is unfair. Instead, it's important to foster understanding and empathy towards others' financial choices, recognizing that everyone's journey towards financial stability is different.
In summary, finding a balance between saving, spending, and giving is essential for achieving financial well-being. While it's important to prioritize saving and giving, enjoying some of your money responsibly is also crucial for overall happiness and satisfaction. Personal financial decisions should be made with consideration for individual circumstances and values, without judgment or comparison to others.