If you lose your job tomorrow, will you be okay financially? Can your educational attainment land you a high-paying job immediately, so you can continue enjoying the lifestyle that you’re used to? These are questions that may be hard to answer if you haven’t built financial and educational wealth.
Other than job security, there are plenty of other reasons to work on these aspects of your life. Let’s take a look at some of them.
You’ll Spend Money on the Wrong Things
When you’re strapped for cash, everything is guided by the price. Particularly, by how cheap they are. From your clothes to your food, you tend to sort your choices and go with the least expensive. This is true when you’re going out with friends, and even more so when you’re just at home and crunching the numbers. Even when you let yourself indulge in an online shopping trip, rather than going for the effective K beauty brands, you choose generic ones because of the price. All these choices won’t improve the quality of your life, and you may also not be aware of the dangerous ingredients in cheap products that could be detrimental to your health.
You’ll Never Know when Your Finances will Change
Education and finances go hand in hand. When you’re educated, there are more doors of opportunity opening for you. They, of course, allow you to be more financially free. Now, if you ever lose your job, regardless of whether it’s by choice or not, you will need to withdraw from your savings. This is the true test of how you can survive. If you are responsible financially, you can make do and find ways to stretch your budget until you can find a stable job. And even when you do get a stable job, you look for side hustles because you understand how volatile the job market is.
Investing Early Means Earning More for the Same Amount
Many can argue that financial wealth is material and will not make you happy in the long run. However, if you’ve educated yourself on the basics of investing, you’ll know that the money you have right now, stashed away in the bank, may have lesser value in the future due to inflation. This is why financially savvy individuals invest, because investing helps grow your money to safeguard you from inflation. Knowing this, you’ll also want to invest early because that gives your money room to grow over time. To catch up to a younger person’s savings and end up on the same amount in your retirement years, you may have to put in double the amount if you start ten years later.
You can earn money, spend money, and not think twice about it. However, if you value your future, you will want to earn that money, educate yourself on how to spend it, and start investing. Though money can’t buy happiness, it can buy you the freedom to pursue the things that make you happy in your old age.
