3 answers
John
Student
Los Ángeles, Bío Bío Region, Chile
1
Question
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What is expected of me when deciding financially?
What is expected of me when deciding financially?
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3 answers
Rafael Diaz Montelongo
Consultant
235
Answers
Raleigh, North Carolina
Updated
Rafael’s Answer
Hi John! That's a great question that everyone should consider. When making financial decisions, there are a few expectations to keep in mind. First, it's important to create a budget and stick to it. Be responsible by paying your bills on time and avoiding unnecessary debt. Saving and investing for the future is crucial. I recommend continuously learning about personal finance and planning for your long-term goals. Remember, everyone's situation is unique, so make decisions that align with your own goals and values!
carolina Mercado
Branch Mananger
3
Answers
Boston, Massachusetts
Updated
carolina’s Answer
Every decision you make has a financial component. For all decisions I like to do a lot of research, see what works for me and have a trusted advisor for guidance.
What is expected of you is to be a well inform consumer before making any decision.
What is expected of you is to be a well inform consumer before making any decision.
Tammy Laframboise
Present pension and financial planning information to members of a pension
43
Answers
Toronto, Ontario, Canada
Updated
Tammy’s Answer
Hi John,
Financial decisions relate to spending, earning and saving. Almost every decision you make will have a financial component.
For example, the decision to eat well and healthily involves your choice of foods to buy; entertainment will include a cost element even if the cost is zero if you choose to go for a walk; keeping yourself and your family safe could involve anything from the purchase of locks to buying insurance. By clarifying each decision you can then investigate the alternative solutions and evaluate the cost of each solution in terms of the benefits, the quality, how it meets your needs and if you have the money to afford the purchase.
In terms of earnings, you are trading your labor for income. In general, the more experience and education you have the greater your earnings will be. The broader economy will also have an impact on what you can earn. For example, if homes are being built in your area than there will be more and better paying construction jobs available. The income that you get from a job is more than just the wage you receive. It can also include benefits like health care, car or other allowances, insurance, pensions, etc. Ultimately, the job you choose is the income that will support your lifestyle and spending.
Saving is "delayed spending". When you save for a car you are planning to use the income you make now to pay for a car you will buy later. When you save for retirement you are planning to use the income you make now to pay for your spending when you are retired. Investment choices then become relevant because you will want to choose to keep the current income that you are saving safe, secure and growing so that it will be available when you plan to spend it.
To make wise financial decisions it is important to ask questions so that you have the best understanding of the income and spending choices available to you. It is also important to understand your personal values as they impact your decision. For example, if you are interested in climate change than you might consider buying an electric vehicle instead of a gas powered vehicle; if you love to travel you might prefer to eat at home instead of going out to restaurants so you can have the cash available for travel.
Best of luck as you learn through experience to make good financial decisions.
Tammy
Financial decisions relate to spending, earning and saving. Almost every decision you make will have a financial component.
For example, the decision to eat well and healthily involves your choice of foods to buy; entertainment will include a cost element even if the cost is zero if you choose to go for a walk; keeping yourself and your family safe could involve anything from the purchase of locks to buying insurance. By clarifying each decision you can then investigate the alternative solutions and evaluate the cost of each solution in terms of the benefits, the quality, how it meets your needs and if you have the money to afford the purchase.
In terms of earnings, you are trading your labor for income. In general, the more experience and education you have the greater your earnings will be. The broader economy will also have an impact on what you can earn. For example, if homes are being built in your area than there will be more and better paying construction jobs available. The income that you get from a job is more than just the wage you receive. It can also include benefits like health care, car or other allowances, insurance, pensions, etc. Ultimately, the job you choose is the income that will support your lifestyle and spending.
Saving is "delayed spending". When you save for a car you are planning to use the income you make now to pay for a car you will buy later. When you save for retirement you are planning to use the income you make now to pay for your spending when you are retired. Investment choices then become relevant because you will want to choose to keep the current income that you are saving safe, secure and growing so that it will be available when you plan to spend it.
To make wise financial decisions it is important to ask questions so that you have the best understanding of the income and spending choices available to you. It is also important to understand your personal values as they impact your decision. For example, if you are interested in climate change than you might consider buying an electric vehicle instead of a gas powered vehicle; if you love to travel you might prefer to eat at home instead of going out to restaurants so you can have the cash available for travel.
Best of luck as you learn through experience to make good financial decisions.
Tammy