Hi,
I've got some friend who is in financial despair, and he called me today to ask me for a piece of advice on a deal he was pursuing. It was a total idiotic idea, but for him, it seems great as he did not see the risks behind the return. Then I remembered that on the time when I was in distress, I had the same way of thinking, idiotic at least to say.
Now that I have financial security, the decisions that I take seem to have a lot more sense. They are not desperate, and are well analysed. Before reaching this point, I was chasing deals or projects that lead to nowhere.
This was because I did not weigh the risks in. When somebody is in financial distress, either guides himself by desperation or hope for a win. Both are suicidal in finance. Decisions shall be made based on figures and on a plan.
I've read an article some weeks ago about the idea that poor people lose some IQ points in taking decisions, which I can tell for myself that is true.
What helped was budgeting and reflection. Some would say meditation, but I can't meditate, I can only reflect with a piece of paper in front where I can do the math and keep the eyes open.
Budgeting helps, even if at the end of the month is a big minus there. It will change in time, as we keep evolving and budget better. Yes, there are cases where a person is rect by life, and nothing helps. I know a few, sadly, but in the other cases, we can fight the misery of it.
Money helps, and money is good if used wisely. Greed is bad, which a total other topic.
What is your relationship to money? How is your mindset?