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If you don't take control of your money, sooner or later financial problems will take over your life. Some say that rich people are constantly thinking about money. But that's nonsense! It's poor people who are obsessed with money and don't have enough money. Money has a huge impact on our lives. But remember, it works both ways! What we do and the decisions we make have a huge impact on our finances and whether we are ultimately rich or not. That is why in this article I will tell you about 7 life decisions that have SERIOUS financial consequences. Check if they won't cost you dearly.
The English have a saying: "Pennywise Pound Stupid", which can be loosely translated as "wise about pennies and stupidity about zlotys". This refers to situations in which we are very focused on finding small savings, but at the same time we do not see much more important problems that can ruin our finances. I talk more about this in the video:
Many people who are just starting to take care of their personal finances often hear “good advice” about how small, everyday decisions can significantly affect their financial situation. You’ve probably heard these recommendations: if you want to have more money, then:
I'm not saying this is bad advice. Each of these actions can be effective tactics to help you take better care of your finances. But what good is it if the effects of these actions can be easily squandered by larger, bad decisions. Decisions that we live with the consequences of later for many years, and which determine the quality of our lives.
Looking for such important decisions, I have created a list of those that, in my opinion, have the greatest financial consequences and that you cannot prepare for in school. I will not elaborate on them too much, because I am extremely curious about your opinion and would like to discuss this topic in comments. Here's my list:
For many, this is not an obvious issue and is seemingly far from finances. Meanwhile, there is probably no greater thief of life's energy and time than a relationship with the wrong person. Staying in toxic relationships inevitably leads to a degradation of the quality of life, also in financial terms. Lack of common financial goals, reluctance to take care of things together about finances, spending money in secret on stupid things - these are just a few examples of actions that can negatively affect the finances of a relationship. The most spectacular finale is, of course, divorce and the great war over money associated with it.
Fortunately, it also works the other way around: a relationship with the right person – who loves us, helps us develop, motivates us and gives us wings – is a real catalyst for positive phenomena in our lives. Of course, I am not encouraging you to abandon your partner at this point/ rki because it doesn't help you take care of your finances. Remember that sometimes it's a matter of lack of communication. In that case, you might be interested in these articles:
I know, I know. I can already see the comments under this article: "I'm in my 40s, it's too late for me." In my opinion - IT'S NOT TOO LATE . Harland Sanders, the founder of KFC, tried different jobs for most of his life. He opened his first restaurant after forties, and only at the age of 62 did he start building the KFC brand. Another example. Look at this year's high school graduates. Today, their mustaches are just starting to fall apart, and in 10 years they will be doctors, teachers, IT specialists, lawyers or in general they will be doing professions that today they do not exist yet. If it works for youngsters, just think how it will work for you – with your knowledge, maturity and life experience. If, of course, you consciously and intentionally focus on action for the next 10 years. Regardless of your age, 10 years from now you could be a great expert in a new field you choose. The decade will pass anyway, and it's up to you where you'll be then . I am providing you with additional materials that may help you with this topic:
No matter how old you are or what your financial situation is – consumer loans and credits are the biggest, most dangerous, most brutal enemy on the road to financial security. The installments will drain your wallet in a ruthless way and will deprive you of your hard-earned money with great efficiency. They will like a ball and chain, like a heavy burden that you can barely carry on your own shoulders. Instead of realizing your dreams and achieving your goals, you have to toil away every day to pay off the next installments and interest. That's not life - it's modern slavery! So – avoid consumer debt like the plague, and if you have it – it’s high time to get rid of this crap from your life. If you need support on this topic, I recommend this series of articles: How to get rid of debt? Now let's move on to the next point.
This decision is worth several hundred thousand złoty, and is often made in a terrible way, based on emotions or opinions of family members or friends who are not familiar with this. If someone stupidly takes out a mortgage loan during this transaction, the beautiful dream of a cozy apartment can quickly turn into a nightmare. in a nightmare with a bailiff in the lead role. A mortgage is the only form of debt that makes sense for individuals. But only if we take it out wisely, after detailed calculation and consideration of various scenarios.
On how to wisely take out a mortgage loan, I created a course: "Mortgage loan step by step" . But in this article I would like to draw your attention to one important element that you need to consider when making this decision. It is the location of your apartment or house. And – note – I don't mean the proximity to the city center, but something much more important. The town you decide to live in. Do you really have to spend your life in a town that is becoming depopulated and where unemployment is high, having any place in Poland, or even in the European Union? You decide where you live and reside. Do not leave this decision to chance or the decisions of your parents or grandparents, because it is not their life, but yours.
Do you want to finish school, get a job and work peacefully until retirement? Or maybe you have a cushy job and would like to stay there until the end of your career? Forget about this approach! It ended in the previous century. If you count on such a scenario, you will not only be poor, but also frustrated. Today, knowledge becomes outdated very quickly. Therefore, continuous learning, acquiring new skills, developing a network of contacts and consistently negotiating higher wages for your better and better work is the best recipe for improving your financial situation. If the topic of increasing income is interesting to you, I encourage you you to read these articles:
Now let's move on to the next point.
For minor financial disruptions and unforeseen expenses, there is a financial safety cushion, which I often talk about on the blog and my YouTube channel. On the other hand, the protection against major financial disasters is proper insurance. Even if you are an incurable optimist, be sure to take care of a few of them. The minimum insurance plan is in my opinion:
The lack of any of these policies can very quickly make you (or your loved ones) completely bankrupt. That is why I strongly encourage you to take care of this topic. And now we come to the last point.
Is retirement too distant a topic for you? Should ZUS take care of you because you pay contributions? Maybe so – but don't fool yourself. It won't take care of you . Don't count on your children either, because then they'll have their own children, their own expenses and their own mortgage loans. Or maybe it's not worth saving because you won't live long enough? If you think so, forget about all the above points, take out as many loans as you can and have fun until you drop on the borrowed money. Just think beforehand - just in case - what you will do when You will live to see retirement – just like 90% of your peers. The real risk is not that you will die before retirement. The real risk is that you will live to see retirement, but it will be a miserable life because you will have no money for anything . The good news is that that you can counteract this today. How? I encourage you to read these articles:
This is my personal list of life decisions with the greatest financial consequences. If we do not make wise choices in these matters, all the Cafe Lattes and Cappuccinos that we give up in the city will not help us much. Of course, this list is not complete - I am counting on Your help in completing it. Please write in the comments what life decisions you think have huge financial consequences.