Financial Beliefs May Misguide You, Let Them not Determine Your Financial Decisions

| Posted: 17-04-2008 | Comments: 0 | Views: 3 | Rating: (83)

(?)

There are some common beliefs that many people put in to practice without taking into consideration if they fit them or not. If such beliefs are used to make one’s financial decisions disappointing results are likely to result.

One such financial belief is about material possessions one has and the more lavish they are spending the better off they are. The glitzy, attention-grabbing ways of the pseudo-rich deceives many about the true spending habits of the genuinely prosperous. The pseudo-rich often have a fleet of luxury cars, and an amazing generous disposition but with few invested assets. Do not be cheated because many of the people driving around in comfort owe more than they own. Genuinely rich people are more interested in true prosperity and security, not conspicuous consumption of status symbols. What may look like lavish spending to other people may not really be in relation to the affluent person’s income and net worth.

Another mistaken financial belief, but strongly held is the fact that owning a business is the only way to succeed financially. But what there is is that the high profile image of such success overshadows the realities of starting a business. It is a difficult, stressful and risky undertaking for which every success story has scores of failures. Statistics indicate that about 90 per cent of all new businesses collapse within five years, with the owner losing the capital and being left with debts. This is not to discourage prospective business people but to ensure they know what they are up against.

However since we are not all endowed with the same talents and abilities, not everybody can be a successful business person. This does not mean that the rest of us are doomed to external poverty. There are many professionals and employed people who are living prosperous and comfortable lives, with well-taken care of families and a secure retirement to look forward to. You can be one of these individuals if you develop a personal financial plan and put it into action. It is advisable to have a professional and qualified financial planner develop such a plan for you.

Another mistaken financial belief is that having a high income equals financial security. While it is important to try and increase your income, what is even more important is what you do with your current income. How much do you save and invest?

Financial security comes from ownership of invested assets coupled with management of risks of loss by the purchase of appropriate insurance products. Even as you enjoy a reasonable standard of living right today, ensure you spend less than you earn and use savings to acquire investment assets as you go through life. it doesn’t matter whether you own millions and millions of dollars. If you spend more than you earn, your circumstances are getting worse, if you spend all you , you are just treading water. The only viable road to financial independence is to save and invest part of your income.

Saving is not easy, but it is easier than living in difficult financial circumstances. A realistic personal budget, automatic payroll deduction or bank standing orders and avoiding unnecessary loans will produce the money you need to save. Once the saving habit is established, it becomes a normal and enjoyable part of your life. Make sure you have the true set of financial beliefs in place in your life and learn how to question other beliefs before implementing them.

Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on Debt for Years. For More Information on FINANCIAL BELIEFS, Visit Her Site at FINANCIAL BELIEFS

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Financial Beliefs

Article Source: http://www.articlesbase.com/investing-articles/financial-beliefs-may-misguide-you-let-them-not-determine-your-financial-decisions-389060.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

See other site on INVEST WISELY

See other site on PAY DAY LOANS LIFESPAN

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:

Latest Investing Articles

What is the TIC: Subscription Questionnaire?
By: Kathryn Landry | 24/07/2008
A TIC: subscription questionnaire is a very important part of the TIC subscription process. There are a few steps involved in the process, including the TIC: subscription questionnaire, which will be discussed in more detail here.

Learning About the TIC: Subscription Risk
By: Kathryn Landry | 24/07/2008
TIC investments are investments that essential give a person ownership of a piece of large, institutional grade property and a sharing of the income among one or more other people.

Learning About TIC: The Non-Recourse Loan
By: Kathryn Landry | 24/07/2008
It is important to understand something before getting into it, especially when it comes to your finances. TICs are one important subject here, and a TIC is essentially ownership of a piece of a large, institutional-grade property and sharing of the proportional income.

The Importance of Understanding TIC: Tenants
By: Kathryn Landry | 24/07/2008
If there is any issue related to the TIC investment that is important to understand, it is the issue of the tenants involved. TIC: tenants are the persons involved with the investment, and when two or more people own property together but are unmarried, they are considered as TIC: tenants.

TIC: Tenant in Common Association (TICA) What They Can Do For You
By: Kathryn Landry | 24/07/2008
If you are like most people you probably have no idea what TIC, or Tenancy in Common, is or what TICA is. TIC: Tenant in Common Association (TICA) is a trade association that serves common owners of property, or in more plain terms it is an association that protects the rights of multiple owners of real property.

Company Formation Services
By: Lizzi | 24/07/2008
Shareholders only need to meet financial obligations of any unpaid shares, which is a rare situation.

Business Incorporation Services
By: Lizzi | 24/07/2008
This is true regardless of whether it is a limited liability company or a corporate.

Why Invest in Property in Turkey?
By: Derek Both | 24/07/2008
Have you ever considered investing money in Turkey? It is slowly growing to become a very popular investment destination, for the country has a very high growth potential.

More from Poly Muthumbi

Making Money Online Maximally Depends on Your Online Presence
By: Poly Muthumbi | 17/04/2008 | ECommerce
Your online presence is very important when it comes to growing your online business. Again your online presence is characterized by your original and dedicated work. And it doesn’t really matter how beautiful your site really looks, your content is what sells you the most.

Kenya’s Smartest Money Strategy for the Common Citizen
By: Poly Muthumbi | 17/04/2008 | Small Business
Hawkers in Kenya are known to be most unsettled business people ever. Fighting across the streets with the city council police all the time. But this has finally come to an end. Someone sat down on his couch and thought that Muthurwa Market could become a good Hawkers market. A good thought implemented; now it is working though slowly.

Payday Loans Hitting Hard the Consumer!
By: Poly Muthumbi | 17/04/2008 | Loans
With today’s life hurdles and difficulties, financial status meter of most people reads negative. This is because of the competing life necessities (expenses) compared to the salaries most people are getting.

Corporate Bankruptcy Details You Should Know
By: Poly Muthumbi | 17/04/2008 | Banking
When a public company files for bankruptcy, everyone with a stake in the company, from employees to creditors to bondholders, is concerned about the future of the company and the outcome of the bankruptcy proceeding.

Bankruptcy Filing, What About It?
By: Poly Muthumbi | 17/04/2008 | Investing
Businesses that are faced with overwhelming fact that their debts have full-fledged to such a huge amount that they might have to settle for bankruptcy filing might not have a clue about how to go about this path.

Types of Bankruptcy That You Need to Learn About
By: Poly Muthumbi | 17/04/2008 | Investing
For the benefit of those who have got no idea what this term mean, I will start by defining what exactly it is. Bankruptcy is a lawfully declared incapacity of an individual or organizations to pay their creditors or lenders at a given period of time.

Investing Your Money in Fixed Assets Will Talk More of Your Financial Position
By: Poly Muthumbi | 17/04/2008 | Investing
Assets can be divided into three groups for the purpose of analyzing one financial position. Understanding which group you belong to is very important and its effect on their circumstances.

Investment is Considerable When it is Long-term, it Pays
By: Poly Muthumbi | 17/04/2008 | Investing
Many people fail to understand and ignore the operations of the stock market and go blindly into it only to watch their money decline by 50% panicking them to death.

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.16, 9)