How to Overcome Procrastination and Financial Challenges

Yesterday we talked about how to save for your dreams. One of the easiest ways is to allocate a small portion of your salary or increase your savings ratio by 50% from your increased income. By doing so, you won't feel like you're losing out and will gradually develop a savings habit, while also increasing your savings ratio. However, knowing and taking action are two different things. Some of us may just listen but not take any action because we find it troublesome. Today, let's talk about the obstacles you may encounter in your financial journey if you are a procrastinator and how to overcome them.

First and foremost, the biggest enemy on your wealth journey is inflation! Inflation is like the scorching sun above our heads. If we do not take countermeasures, our wealth will slowly melt away like ice cream in the sun. As prices rise across the board, the money we hold will become increasingly worthless! Several years ago, there was a report that a woman named Chen in Xiamen saved a 1200 yuan bank deposit in 1973, and in 2017, 44 years later, she retrieved 2684 yuan in principal and interest from the bank. At first glance, it looks like her capital has doubled, which is pretty good. But we have to bear in mind that in the 1970s, we were still in a planned economy, and the average monthly wage for an ordinary worker was only 20 yuan. Back then, the price of rice was 1.4 cents, the price of meat was 9 cents, and the New Year's red envelope was perhaps only one or two cents. 1200 yuan at that time could even cover the cost of building two brick houses. However, what was considered a huge sum of money at that time can only cover the cost of a family outing now. Therefore, inflation is like a chronic poison, and the longer it lasts, the more damaging it is to your wealth. In our next article, we will discuss in detail the huge impact of inflation on wealth.

Secondly, as we all know, our country is aging rapidly. We can still hope that our pension will allow us to live a comfortable retirement life, but in 30 years, when the post-80s retire, we will find that there are more elderly people than young people. At that time, we may face the dilemma of not being able to afford a decent retirement life even if we save money diligently. Therefore, we should start planning and investing as early as possible to prepare for retirement.

Thirdly, the procrastination of not taking action is another challenge that many people face. Most of us are aware of the importance of financial planning, but we tend to postpone it to the future because we feel that we still have plenty of time. In fact, time is our most valuable asset, and procrastination can lead to missed opportunities. We should start investing as early as possible to make use of the power of compounding interest. We can start with small amounts of money and gradually increase our investment portfolio.

Fourthly, we should be aware of the risks involved in investing. Many people may be tempted by high returns, but the higher the return, the higher the risk. Therefore, we should diversify our investment portfolio and avoid putting all our eggs in one basket. We should also have a long-term investment horizon and not be swayed by short-term fluctuations in the market.

Fifthly, the lack of financial knowledge and skills is another major obstacle for many people. In today's world, financial products are becoming more and more complicated, and it is easy to be confused by various financial jargon. Therefore, we should take the initiative to plan and prepare for our retirement, especially considering the fact that the pension system may not be able to support us fully in the future.

Thirdly, another challenge we face on the road to financial freedom is debt. In today's society, it is easy to accumulate debt, whether it be through credit cards, loans, or other financial obligations. Debt not only adds financial stress but also eats away at our ability to save and invest for the future. Therefore, it is important to make a conscious effort to minimize debt and to pay off any existing debt as soon as possible. This will help us to stay financially stable and give us more flexibility in making investments for our future.

Fourthly, a common challenge we face on the road to financial freedom is the lack of financial education. Many of us may not have received adequate financial education, and therefore, we may not know how to manage our money properly. This lack of knowledge can lead to poor financial decisions and missed opportunities for savings and investment. It is essential to educate ourselves on basic financial concepts and strategies to help us make informed financial decisions and achieve our financial goals.

Finally, the last challenge we may face on the road to financial freedom is our own mindset. Sometimes, we may be held back by our own limiting beliefs about money and our ability to achieve financial success. It is important to recognize and overcome these limiting beliefs and develop a positive mindset towards money and financial success. This can help us to take risks, make smart financial decisions, and ultimately achieve our financial goals.

In conclusion, the road to financial freedom is not always easy, and there are many challenges we may face along the way. However, by being aware of these challenges and taking steps to overcome them, we can set ourselves on the path to financial success. It is important to have a plan, stay disciplined, and educate ourselves on basic financial concepts and strategies. With persistence and dedication, we can achieve financial freedom and live the life we have always dreamed of.

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