Now I would like to add a little for people who already have debts. I suggest to slowly pay off the smallest debt first, of course according to your ability. Because usually people who are already in debt will pay off from other loans so that it becomes a circle that will have no end. And if we are forced to go into debt, then make sure it is not debt for consumptive purposes. Because that's where problems usually arise.
And that's truly a cycle that will never end if they do that. A debt is being paid using another debt, a loop that has no end. True, and I don't recommend doing that. I agree to you that paying off the smallest debts first until they have left with the biggest so at least they're focusing in it a little by little. Having debt to think of on a daily basis will make you stressful thinking of it at night unless you're the kind of person who's unbothered with it.
The first thing we have to do is break the cycle to make our finances more stable. If they say it's a difficult thing to do, I can understand that. But that doesn't mean it's not an impossible thing to do if they intend to do it. In fact, I think if necessary they can sell their valuables to pay off all debts.
If all debts can be paid off, then it will be easier for them to manage their finances. Easier doesn't mean no difficulties, but at least they will be more comfortable in living life because they don't have to think about the burden of debt every month.
Apart from that, people usually feel that the money they allocate for saving, investing is too little. Even though it's not a problem at all, the most important thing is that we can be consistent in allocating it. And if possible we should have additional income. We should try to create more than one source of income.
Small or big in investing or savings, as long as there's a gain of doing that and they're practicing it consistently. Big things comes from small so making it as a habit is actually good.
That's the point, big things start with small things that we do consistently. If we want to make it big right away, then I don't think we'll ever be able to invest, and only luck can make us do that.
I can say this because I feel it myself. Compared to other people, the amount of money I allocate is very small, but I do it consistently so that in the future I have a large investment. Everyone's ability is different, don't equate our ability with other people's ability.
