Len Penzo is the author and editor of LenPenzo.com, a blog that covers personal finance in a very simple and entertaining way.
This time, he has done a perfect job of summarising some of the secrets that I think we should all write down on a piece of paper and keep firmly in mind, because, inexplicably, even though none of them is new, we tend to forget them often. I understand that some of the points could stir up a certain amount of controversy and debate, but on the whole I agree with them.
Some personal finance secrets that shape your financial success from the mindset side
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Debt is a form of indentured servitude in which people voluntarily sign away part of their future income in exchange for instant gratification.
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Cash machines, spare cash and cards are the Achilles heel of compulsive shoppers.
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Given the choice, it is always better to live as a rich person anonymously than as a poor person trying to look rich.
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If you feel the need to ask your boss for a raise, perhaps you need to change “employers”.
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It is impossible to manage your personal finances effectively unless you track and keep control of your income and spending.
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Only fools play the lottery. So do dreamers, who are fools with high hopes.
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Treat your household like a business: manage your finances actively and keep looking for ways to maximise your income.
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When it comes to saving money, patience is a virtue.
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Nobody needs a university degree to invest or to work out the return on an investment.
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Precious metals such as gold and silver are for preserving wealth or for speculating, not for investing.
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Money doesn’t buy happiness. Financial freedom does.
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Only fools and the financially naive believe that someone who drives a very expensive car must be well off.
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When it comes to managing our personal finances, not having a plan is the same as planning to fail.
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Personal finance is not rocket science requiring amazing skills. All it takes is interest and dedication.
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Buying a home is not always better than renting one.
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Any Spaniard who believes they will live well by paying into Social Security, retiring and living on their pension will find that they have to work until the day they die.
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You can succeed without a university degree.
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Having a university degree guarantees you success in absolutely nothing.
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The harder you work, the more luck you will have in life.
Further reading
- 10 ways the rich think differently
- Different ways to make a million
- The pyramid of financial success
Featured image: B*lly Frank, CC BY 2.0, via Flickr.
