Good deals and bad deals
When you have little money, we must act intelligently to make the money work. I was struck by the ease with which many people to do bad business with their money and end up worse off than they were.
That something is a good or bad deal can be understood very broadly, and there are plenty of examples, then show some of the ones I think are most typical.
Bad business
Living unsustainable lifestyles is a bad deal . Many times we spend our money not according to what we have, but what we would like to have. That is: we live life we think we deserve it in a perfect world, no life that we really won.
We are constantly bombarded with ads telling us to buy this or that and be more attractive, happier, more cool , etc. Have some things to make us happier times, and it’s nice feeling to buy something, but sometimes the cost is very high and we must learn to cope with what you have as well.
Something that helps in this is to decide consciously what lifestyle we have. Clearly for many is not what we see on television about how the rich live. Help question: people who earn what you earn one, you can afford this type of expense?
Borrowing to consume is bad business . When one asks for money, the bank “takes” one to lend you money. For example, if you ask for 1,000,000 pesos a year, at the end of the year will pay 1,100,000 or more. If it is to do business, and business is good, then it’s worth it because what we earn more money than the bank charges on credit. But if it is to buy something, ie, for consumption, is much cheaper then save.
Many banks apply a rule similar to this: if you have a loan with them and make timely paid some dues, and suddenly you start to slow, they call you and give you the credit line increase you to make you more debt. The more debt you are, the more money you lose by the loans. The same happens in the stores, where what is more they charge you earn high interest on loans, more than the sale of clothing or goods that you sell.
Buying a home without saving enough is bad business. The cost of borrowing money becomes much worse when the claim is for long term. For example, if one asks for money for a house within 20 years, then during the first 8 years only pays interest, ie, only paying the price for not having saved enough. Buying a home can be good business for you eventually if you save enough to make an important stand, and if you choose a house and a loan that is appropriate for what you want.
The major problem is that buying a home is an investment that has too much security, and therefore a very small profit. In business, you need at least a little risk to make money. Have 100% security means having 0% profit. Therefore, from a strictly economic standpoint, most of the time there better things to do with the money to buy a house.
Accept exploitative working conditions is bad business . This certainly has to do with risk aversion, fear of job loss. Keep in mind that there is a tremendous difference between those who give work to one requiring him to comply with and be productive, and exploit it for greed. You have to have a cool head and think like a business: When you work for someone else is selling something, your time, and when you sell something, you have to try to get the highest possible price for what you sell, it’s nothing another world. To some extent, this means that it is necessary to maintain a certain level of savings to have economic independence, eventually, leave a bad job in search of better prospects.
Buy without comparing prices is bad business . Finally, bad business in which we embarked is frequently not the right quote and buy bad alternatives. Ill buy often because we are too lazy to compare, and sometimes because we are carried away by what the advertising says without hesitation. This is a bad deal perfectly avoidable, which only requires to be attentive.
Good deals
Saving is good business . As debt impoverishes you, saving you rich. Saving energy is coupled – money – to use it at the time that is most favorable for you. Typically, this means delaying some satisfaction.
Learn to delay rewards and patience is very important. I’ll give you an example that may offend you, but it is with good intention. In a seal can be trained to do certain tricks, like balancing a ball, but it is necessary to give a fish immediately after each trick, because the seal has a very short-term mind and if you do not give a reward immediately does nothing. A dolphin, on the other hand, can make a long series of tricks like balancing, jumping, swimming backwards, etc, without requiring each time a reward. The dolphin is smarter than the seal and can hold in your mind any longer the fact that after you receive your prize. Humans are the final link in this chain and we can expect even years if necessary. We do not need a fish every two minutes to do the things we do. We can save and wait.
Entrepreneurship is good business . In terms of money, who does not risk not cross the river. ” Rather than spend on big things we can not afford and why we have to go into debt, is much more business together and invest money in a small company, with family or friends, in a matter of what one knows much, and with someone who know how to do business . In the same 20 years you’d deslomándote payable, for example, a house bought with a mortgage that only benefits the bank, you can use your foot to start a business, work just as hard, but for yourself, and therefore enjoy full benefits.
Undertaking is not an easy road, though. Involves taking a series of decisions, take a share of risk. Most entrepreneurs work hard and are the most demanding bosses themselves. At the same time, realize profits if only they would never work for another lifetime.
Negotiate the conditions of work is good business . If you work for someone else, it is important to do so in good condition and with a good salary. For workers with higher qualification, technical and professional, there is some more room to maneuver to get a good deal of work you do. Required to negotiate well, by the way, have some savings to have enough time to find a good job, and not have to accept the first thing that we propose. This requires patience and a cool head.
In the case of workers with less qualifications, the only solution is to negotiate well together. In virtually the entire Western world, there is the right to bargain collectively with employers, and it is absurd to do so when appropriate. Each separate worker has little bargaining power, so it’s a matter of common sense trading in all working conditions and salary. As in any negotiation, this needs to have as much information as possible to ask for and obtain without spending much or by little.
Buy report is good business . Fortunately, consumers can exploit the competition for us, simply by comparing prices and conditions. For example, in most supermarkets is very cheap deals on certain products, but others are quite expensive, which makes most is to buy everything at once in the same place, so thinking that saves end up spending more when ordained and comparing a little better could save a lot of money.
Another example: in hiring a service such as Internet or telephone, for example, the most publicized deals are often the most expensive and which are worse, well worth seeking out and comparing prices, because there is always smaller companies that offer services super competitive and good.
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