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It turns out people are doing betterfinanciallythan what has been portrayed.
Even with these optimistic data points, many people are still living paycheck to paycheck.
Sethi presented common mistakes that make people feel like they have less than they really have.
He also highlighted solutions that canhelp you feel better about your finances.
Sethi went on to say that most peoples feelings about money do not match how they spend it.
They may not feel like they have enough, but they are deploying their cash toward worthwhile expenses.
For this one, Sethi suggested creating aguilt-free spending account.
Sethi recommended setting up an emergency fund that covers three to six months of your expenses.
Its important to keep this account separate from your checking and savings accounts.
That way, you wont mix up funds and can keep your finances more organized.
Sethis action step for this common mistake is to gradually build your emergency savings.
you could also capitalize on a high-yield savings account so your bank does some of the legwork for you.
Sethi offered a clear definition of an investment: something that has the potential to produce a financial ROI.
The financial influencer mentioned a common example where the lines betweenluxury items and investmentscan get blurry.
For instance, some people may assert that working with a personal trainer is an investment.
Sethi has a personal trainer, but he doesnt view it as an investment.
A personal trainer is a luxury.
The action step for luxury items is to trigger the numbers before buying.
Viewing something as a luxury instead of an investment can minimize the likelihood of overspending.
Its important to look at thecold, hard numbersinstead of relying on your feelings when making decisions.
Not Being Able To Say No
The final mistake Sethi mentioned is the inability to say no.
Saying yes to every purchase and experience can stretch your budget thin and put you in the negative.
While youre more likely to live paycheck to paycheck if you never say no, its an avoidable scenario.
Sethi encouraged people to get more clear on what is important to them.
Knowing whats important will also determine what isnt important to you.
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