The United States may have the largest economy in the world, yet Americans continue to be grossly uneducated in budgeting, saving, and investing, which is an issue for Gen Z.
If you cannot recall the capital of Idaho, the worst that may happen is that you will have to look it up on Google. However, if you continue to be financially illiterate, you may face a more catastrophic outcome, such as a lifetime of debt or even homelessness.
Having Excellent Personal Finance
It is common knowledge that the more wealth one possesses, the more secure one’s life can be. People who earn a half-million dollars a year have confided in me that they are constantly two paychecks away from financial catastrophe.
In other words, these wealthy individuals constantly lie awake at night fretting about their finances, knowing that if they were to lose their jobs, they would be in grave problems. On the other hand, I know numerous $40,000-per-year earners who may starve to death.
If you earn $100,000 a year, you may be able to afford the Tesla, but if you suddenly lost your job, would you be able to keep up with the payments?
One of the best personal finance anecdotes cautioned against succumbing to credit card pitches.
Gen Z Shouldn’t Easily Believe Credit Card Offers
The lesson here is not to be seduced into accepting a high-interest credit card offer due to the presence of a free present (whether it be Frisbees or “points”).
The long-term expense will be significantly more than the short-term incentive. You should only use high-interest credit cards to pay for basics if you have no other options.
People with a healthy financial situation will not pay Apple first, regardless of how wonderful the new phone is. After paying for necessities (food, rent, and medicine), they will pay off bills and high-interest loans with the balance.
If they have excess pay, they will deposit it into their savings account or invest it. They will spend $1,000 on a new iPhone only once their savings account has grown substantially.
Someone once defined insanity as “repeatedly doing the same thing and expecting a different outcome.” If you are not financially where you want to be, it is time to start changing your financial habits – PAY YOURSELF FIRST.