Impulse buys, bad spending and inability to invest seem to be crippling most people’s ability to create wealth. The major cause of all this dilemma is financial illiteracy. People want to be rich, not to create generational wealth, but to spend recklessly on their lavish lifestyle. They want to match up with the Johannes. It’s okay to desire wealth, provided you understand how to keep it and grow it to make more.
And there’s certainly nothing wrong with living a luxurious life and buying expensive possessions, provided you can afford it. It’s wise to acquire many assets first before buying any luxury. Luxury is costly to maintain and must be avoided until your money is stable enough to work for you.
Here are some luxuries to avoid when you can’t afford them or if you haven’t acquired enough assets:
1. Fancy car
Oh yes! This one is a favorite of many. Especially the black community. If you’re starting out, opt for affordable car that won’t chop your bank account. Everything big starts small. The road to driving a Lamborghini or a Porsche begins with a simple corolla which will save you from a lot of financial turmoil.
2. Expensive Rental home
A costly apartment gazing the beach is very cool but doesn’t come cheap. There are apartments that go for R20 to R30k+ a month and these are what many black rent out when they’re not yet financially free. They do this to gratify peer pressure and to prove that they can afford while they’re actually suffocating. Get a cheap apartment or room while saving up for a bond. Cool!
3. The bling
New designer outfits, shiny jewelry, colorful hairstyles, fabulously costly makeup, you name it. People always want to associate their lifestyle with some attractive bling. Choose these bling wisely and according to the beauty of your wallet. There’s no need to imitate someone else’s life. Live your own life that you can afford.
4. Gadgets and House material
Latest smartphone, R20k+ fridge, R15K+ couch and many more are some items that many people buy prematurely. Not only are these costly liabilities, they’re also expensive to repair and maintain. Buy what you can afford when you need it. Plus, who’s going to have the time to be asking you about the price of your couch? Who cares?
5. Expensive partners
Yes, it’s true. There are financially hungry girlfriends and boyfriends whose charm and kisses don’t come cheap. It gets worse when you’re dating multiple partners at the same time. They will suck your pockets until you’re left naked. Then they dump you. These guys are sexy criminals and cute experts who know the trends and tricks of getting into your wallet and leave it bleeding for life. You have been warned!
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