The Conservatism Principle actually is a guideline used in financial accounting when recording transactions on the company’s books. But after learning about this principle, I could see how this can and should be used in personal money management as well.
It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
One of the most basic things to consider when managing your money is the Law of Association. Although this doesn’t seem to be linked to your finances in any way, it can impact both your income and spending tremendously. First, let’s take a step back; what is the Law of Association exactly?
Too many people spend money they haven’t earned, to buy things they don’t need, to impress people they don’t even like.
The Golden Rule of Finance is one that makes a tremendous amount of sense to many, but only a few truly know how to apply it. The above mentioned quote by Will Rogers hits the nail right on the head as it is a great explanation why people cannot live up to the Golden Rule. Here is how it goes:
This one step – choosing a goal and sticking to it – changes everything.
Goal setting has become very popular and more people are using it as a strategy to get a clearer vision of what it is that they want. And honestly, sometimes people don’t even know what they want. There are people going through life never really aiming for something or never trying to achieve a higher purpose. Personally, I think setting goals is not only important to set eyes on the prize, but also to obtain fulfillment.
A candle loses nothing by lighting another candle.
You might be wondering why someone would go through all this trouble and try to educate others who might or might not agree with you, let alone even read your content. Well, I can’t speak for everyone on this one, but here is why I think it is important.