Although building good and strong financial habits is very important, the impact of daily living conditions pushes the individual to make irrational financial decisions which backfire catastrophically and destroy their future as experts believe that the first reason is the lack of “financial resources”. awareness”, due to the lack of interest in teaching the principles of money in schools, because financial awareness allows the individual to acquire skills that allow him to control his financial desires, to control his needs and duties, manage financial affairs, and achieve “health.”
The term financial health refers to the personal monetary status and stability of the individual, i.e. the feeling of financial security and the freedom to make financial decisions in the present and thinking about the future. . The most prominent signs of financial health are the continued flow of income, infrequent changes in expenses, and continued growth in cash flow.
The big mistake
And financial management expert Hassan Hatoum says in his interview with Sky News Arabia Economy that there is no doubt that the individual makes irrational financial decisions, spending excessively on things that do not constitute a priority, and his belief that he is the sole controller to determine the path that awaits him in the future, they are considered financial mistakes that make his financial future unstable. But the big mistake that can destroy the future of any person, especially in the present age, is that the individual spends money he does not have on things he does not need.
The mistake of spending money we don’t have
According to Hatoum, living with borrowed money, especially provided by credit cards, which can be easily obtained nowadays, is the worst financial mistake that can be made, because these cards push the individual to spend money he does not have, and exhaust with the interest he has to pay, because this is the first reason to push the younger generation to make irrational purchasing decisions, this is confirmed by studies , which show shoppers spend up to 100% more when paying with a credit card.
Adrift behind deceptive quick profit marketing
Hatoum adds that some pages on social media have played a major role in recent years in causing many people to make financial mistakes that have negatively affected their future, and this case continues until now, as these pages suggest that any individual can make quick gains in an easy way, by investing in certain assets, indicating that these are assigned to “pay” marketing for certain investment tools, to create a false impression on the way that a individual should borrow to accumulate wealth, and thus listening to the advice of these is one of the most important reasons that lead people to make financial mistakes in the current era.
oversized lifestyle
Hatoum pointed out that the “bloated lifestyle”, or so-called exaggeration in lifestyle, is a phenomenon that is spreading a lot now, and leads the individual to believe that he is capable of anything. obtain, then he resorts to benefit from the service of payment by installments and for years, and he buys an apartment and a car. And he boasts of being financially rich by adopting a luxury lifestyle, only to find himself, in the end, trapped in exhausting and long-term financial difficulties. obligations that could destroy his future.
I’m not the only one to decide the course of the future
According to Hatoum, these people are usually able to cover their monthly expenses, but they are unable to achieve long-term financial stability, because any unforeseen events that may happen to them, such as layoffs for economic reasons, can lead to their loss of everything, and therefore Every individual, when preparing a financial plan for his life, must bear in mind that he is not the only person who controls the determination of the path that awaits him in the future, but rather the events and turns of life which control his path, and from there he must slow down in making decisions, and learn to identify the difference between necessities and luxuries.
savings fund
For his part, Dr. Alfred Riachy, a member of the executive committee of the World Economic Forum, said in his interview with “Economy Sky News Arabia”, that financial security cannot be achieved overnight, but rather on long periods that require study. , conscientiousness and patience, because the individual must invest in himself. First, the creation of an own savings fund, which is fed with 20% of monthly income, and therefore savings in this fund play a role important in achieving financial health, emphasizing that skipping this step can destroy any individual’s financial future.
How to achieve financial comfort?
Riachi pointed out that anyone who wants to enjoy financial comfort must plan well to reach this stage and get rid of some misconceptions, including the idea that “we only live once, so we will spend all our money”, noting that no one ne sais quoi Like depleting our entire financial income and enjoying it carelessly based on the idea that we might die tomorrow has become a method followed by many in the current era and results in their financial suffering throughout of their life.
Do not accumulate bills and debts
Riachy stressed the need for the individual to determine the amount of money he earns per month, in order to cover all his expenses and pay his bills without delay, and then to determine the amount that can be saved, calling for not not accumulate bills and debts.
Here are some simple tips that can help you reduce your expenses:
Avoid impulse purchases. Think carefully and don’t rush to get your wallet or credit card out of your pocket. If you had to pay cash, would you still want to buy? Compare prices in stores and stick to the habit, and distinguish between your needs and your wants. Need: It is a basic necessity for life: clothes, food, medicine, work needs and medicine. Desire: This is what you want but it is not essential. For example, vacations, dining out, video games, club memberships, or designer shoes.
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