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Making a huge financial blunder can feel devastating.
It can also seriously undermine your confidence inmanaging money.
you’re free to get back up.
Below are some steps to take to recover fromyour money blunders.
One of thebiggest behavioral biasesthat humans succumb to is the bias toward immediate gratification over delayed gratification.
That is, our present selves tend to win over our future selves, he continued.
He said, One has to make saving money a habit.
And habits good or bad develop over time.
One of the easiest ways to get into the habit of saving money is to make it automatic.
You will practice dollar cost averaging and build significant wealth over the long run, he added.
Johnson also noted that automatic savings plans can take many forms.
Moreover, one of the biggest advantages of automatic plans is the lack of constant involvement.
That is, once enrolled in an automatic savings plan, people tend to stay enrolled.
Individuals need to be taught toinvestfor retirement and not tosavefor retirement.
And starting early is the key to successfully building wealth all thanks to the effect of compound interest.
It is also important that people embrace investing and not simply saving.
And you’re able to use it to your advantage starting today.
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