Do Time Machines Create Financial Success?

753 Words 4 Pages
The future is amazing. Without a doubt, what most people would do if they had a time machine is go back in time to create financial success. Obviously, time machines don’t exist, so why not start now. We might make mistakes along the way, but we can learn from those, as well as other’s mistakes. The biggest mistake that people have made, is not building upon the three pillars of financial wellness.

We all make financial mistakes. The most common would be the the result of the “latte factor”. In order to avoid this, Nadia suggests that up to 20% of cash earned goes towards simple purchases that add up - donations, coffee and the such. Frugality helps with this. If you are so frugal that you aren’t spending the 20% of money, you can further save that to pay off your debts, or bank it in a emergency fund. Along with this, and unexpected windfalls should not be immediately spent on worthless things like lattes. They should be saved for things like an unexpected emergency, or a long term goal. If you don’t do this, you may run into a fair amount of debt - Nadia’s father never spent what he didn’t have. In some cases, this would not help - buying a house will put a person into debt, and they will require loans to pay off the house. With other expenses though, a “debt free lifestyle” would greatly help a
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These factors all support each other, so if you fail to do one, you fail all of them. If you do not stick to your budget, you will not be able to afford a consistent lifestyle. If you do not live a consistent lifestyle, you will not save money, or be able to invest. The effect of this comes in a few years, where you don’t have enough savings: you will not be able to create the same budget as you did ten, twenty, thirty years ago, and thus the cycle will repeat. In order to avoid this, you must manage all of the factors, and do it

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