2 Money Management Mindsets You Need To Avoid At ALL Costs!
Updated: Apr 1
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Let’s talk about the two most deadly money management mindsets that you need to avoid and why.
The first mindset that you need to avoid is the Financial Independence Retire Early Mindset, aka F.I.R.E, where people often aim to retire in their 30s or 40s and invest up to 75% of their income each month to accelerate their progress.
While retiring early sounds good, the problem comes as these groups of people often suffer from a miser mentality and tend to sacrifice their current standard of living for a better future.
The disregard for the present standard of living in anticipation of a better future is very dangerous as while it is important to think about our future, it is equally important that we do not forgo the present and learn to enjoy the time and experiences that we have now.
The second mindset that you need to avoid is the You Only Live Once mentality, aka YOLO, where people often spend impulsively without consideration of the future.
The problem that I have with the Y.O.L.O mentality is the binary assumption of life – you are either dead or alive – and the failure to acknowledge the natural deterioration of health that comes with age.
While it is important to enjoy the present, it is equally important that we think about providing for our future weaker self, where we are unable to produce an income or even worse sustain independent living.
A better money management mindset to have is something in between the F.I.R.E and Y.O.L.O mentality which I have coined to be the Value For Money mentality.
Read More: Value For Money Mindset - How I Manage My Money As Finacial Planner
All of these can also be found in my eBook: “The Price Of Financial Freedom” which will provide you with a comprehensive guide to help you achieve financial freedom and live life on your terms in the shortest amount of time.
You can download a copy of it for free on my website:
If you do not know how to get started with your financial planning or if you do not have the time to manage your finances, you can consider engaging an Independent Financial Advisor who can help you make sense of the market, accelerate your progress and achieve financial freedom by 5 to 10 years earlier!
To find out more information about how you can benefit from my financial planning services, you can check out what I do on my website here:
Daniel is a Licensed Independent Financial Consultant with MAS and a Certified Financial Planner (CFP®).
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This article is meant to be the opinion of the author
This article is for information purposes only
This article should not be seen as financial advice
This advertisement has not been reviewed by the Monetary Authority of Singapore