Yesterday, over at Get Rich Slowly, there was a post by Sarah Gilbert entitled “One Lesson From a Financial Whiz Kid.” The post is really about a book by Zac Bissonnette, Be Richer, Smarter, and Better-Looking Than You Parents. While we haven’t had a chance to read this book ourselves, the post has some great highlights.

 

Zac is a 20-something writer who is targeting his age group, but the lesson he gives can apply to everyone, no matter their age. The lesson he teaches is simple: “Don’t spend money.” Obviously, not spending any money isn’t an option, but not spending money on something that is unnecessary or that will get you into debt is.

 

Sounds simple, but as we all know, this type of discipline can be very difficult to maintain. But it’s such an important part of handling your finances. As Zac writes, “Managing your financial life is not about spreadsheets and compound interest. It’s about your life. The financial decisions you make can give you freedom or make you a slave.” You can spend as much time as you want on dealing with your finances, but if you can’t learn and live by this simple rule, you’ll likely never get ahead.

 

Another important point Zac makes is that many people will buy something not because they really need or even want it, but because they want the status that may come with it. He writes “A house you can’t afford can be a prop. Or a car. Or a watch. When you think about it, we spend a lot of money on props — stuff that makes us look like something we’re not.”

 

Again, the idea is simple, but it’s a great lesson to learn. And it’ll be much easier on you if you learn it before you run up your debt and have to dig your way out.

 

  • Disclaimer: The information on this blog is not meant for specific financial advice. The ideas/opinions stated are not suited for everyone, and readers should use their own judgment in applying them in their financial lives.
Advertisements