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The principle of never losing money can be applied not only to the business and investment world but also to our daily lives, by managing money wisely and avoiding waste. The principle of never losing money in personal finance means prioritizing the protection of the funds and assets we already own. The main principle is not to underestimate small, regular spending, wasteful spending, and impulsive spending. There are several strategies for implementing the principle of never losing money, such as:
1. Change your mindset and perspective, emphasizing that losses are not limited to business and investments, but also to routine expenses such as having to pay fines for late payments, gym memberships but not being active, impulsive shopping, letting inflation erode your savings, etc.
2. Designing a budget is not just about managing financial expenses but also about protecting your finances. Ensure that basic needs are prioritized, followed by emergency funds and investments.
3. Avoid everyday financial traps
In the investment world, there is a value trap, where a stock appears promising and cheap, but after being purchased, the price drops. Similarly, in personal finance, this can take the form of small, recurring expenses, such as gym memberships but not being active, buying items for prestige, etc.
1. Change your mindset and perspective, emphasizing that losses are not limited to business and investments, but also to routine expenses such as having to pay fines for late payments, gym memberships but not being active, impulsive shopping, letting inflation erode your savings, etc.
2. Designing a budget is not just about managing financial expenses but also about protecting your finances. Ensure that basic needs are prioritized, followed by emergency funds and investments.
3. Avoid everyday financial traps
In the investment world, there is a value trap, where a stock appears promising and cheap, but after being purchased, the price drops. Similarly, in personal finance, this can take the form of small, recurring expenses, such as gym memberships but not being active, buying items for prestige, etc.
