Financial lessons can be found anywhere. You can even get great lessons from TV programs. You can find a lot of ideas from the various situations that you go through on a daily basis. As long as you are perceptive enough, you can get tidbits of information that you can use in your life.
Even the latest news can be a great source of tips that will help you manage your finances. Like the latest news about the Samsung Galaxy Note 7. According to the article from CNet.com, Samsung is in deep trouble because of the reports that the smartphone catches on fire when it is being charged. The company is desperate for their clients to return the phone. They are even giving away $100 in credit as a sign of goodwill for all the trouble that their clients had.
No doubt, this is considered the most humiliating and disastrous experience for the technological giant. Everyone is reeling from the humiliation that happened to the company that prides itself for its quality products. But more than dwelling on the humiliation of this company, did you know that you can get financial lessons from what the company went through?
4 money lessons from the disastrous Galaxy Note 7 of Samsung
Every event in our life comes with a lesson – more so when it is a negative situation. There is something about the bad experiences that will really leave a mark in your life. It is a great way to teach yourself about what not to do.
When it comes to the Samsung Galaxy Note 7 fiasco, here are the financial lessons that we can get from it.
You do not have to keep up. No matter what Samsung says, Galaxy Note 7 was an attempt to keep up with the iPhone 7 launch of Apple. In fact, Samsung skipped from Note 5 to Note 7 just so their latest product will have the same number. This backfired on them. It was very obvious that the jump in number was an attempt to keep up – which heightened the humiliation. For consumers, keeping up with the Joneses is a habit that can compromise your finances. This is when you give into the habit of buying or upgrading your lifestyle just because someone you know did the same. Even if you can afford it, there are better ways to use your money. You can save it or invest your money.
Small mistakes can you a lot. This fiasco cost Samsung a whopping $18 billion worth of profits and losses in shares. This is according to the article published on CNBC.com. Although this will not cause the company to go bankrupt, it can make their rise very difficult. If they cannot gain the trust of consumers back, it might lead to their continuous downfall. The same is true for consumers. You may be spending a small amount of money here and there. But if you combine that amount, it will cost a lot of money in the end. Even the small decisions should be done with a lot of consideration because no matter how small, it can affect your financial situation.
Speed is not always the best solution. Another lesson that you can get from the Galaxy Note 7 troubles is that speed is not always the best solution for your problems. It is important for you to understand that sometimes, being fast can cost you more. Although we are just speculating, there is a high chance that Samsung launched the Note 7 early because they wanted to go ahead of the iPhone 7. By cutting short the production time, they may have missed the issue with the battery. When it comes to your finances, the quick fix is not always the best solution. Sometimes, it may even cost you more. For instance, filing a petition for a Chapter 7 bankruptcy may seem like the quickest way to get out of debt but it can damage your credit history for the next 10 years. Not only that, it will remain in the public records forever. Or when it comes to companies promising the quick fix, the too good to be true offers are sometimes scams. So be very careful.
No matter how bad it is, you can always recover. Although we are not yet sure how this will end for Samsung, we are hoping that the company is resilient enough to survive this humiliating issue. If you put yourself in their shoes – that is a different matter. Surviving a financial crisis is not a simple thing to accomplish. But you can get past it if you are determined to succeed. Not only that, you also have to learn from your mistakes. Think about the financial lessons that you should learn so you can avoid landing in the same situation.
Tips to recover from a financial crisis
It is never easy to rise from a crisis but with hard work, discipline and a lot of patience, you are bound to rise from the ashes of your financial mistake. Here are some of the tips that you can follow to help you recover from any financial difficulty.
- Keep despair at bay. Sometimes, a financial problem or debt can lead to despair. After all, you are in this situation because you made a couple of mistakes or someone did you wrong. Both scenarios can be devastating. If you really want to improve your financial situation, you have to keep your emotions in check. It is okay to feel sad but do not let it paralyze you into acting so you can improve your situation.
- Understand the problem first. It is important to study what led you to that situation in the first place. That is how you can ensure that you will not land in the same situation again. Sometimes, even if the financial problem is debt, you have to know what caused you to be in debt. You need to address that problem. Is it bad spending habits? Or is it your inability to be prepared with an emergency fund?
- Do not focus on the amount. According to the NewYorkFed.org, the average household debt increased by $35 billion in the second quarter of 2016. Auto loan and credit card debt caused this increase. It is also advisable that you should not focus on the amount. Sometimes, the amount will discourage you and lead you to despair. Just take it one step at a time so you will not feel overwhelmed by the financial difficulty that you have to overcome.
- Know your options. You should also understand your options. It is also important for you to know the different ways that you can get rid of debt. Even if your financial problem is not debt, there are usually various options to overcome your situation. Make sure you dedicate enough time for research to determine the best way that you can get out of your financial problem.
- Be steady and consistent with recovering from debt. Solving the problem will not always be easy or will not go smoothly. No matter what happens, you have to keep on going after your goal. You cannot give up because that can be disastrous to your financial future.
Think about all of these financial lessons when you are trying to get out of a tough financial fix. Surviving a financial crisis is hard but as long as you learn your lesson, you do not have to worry about committing the same mistake again.
Common questions about financial lessons
Question: What are financial lessons?
Answer: These are lessons that are related to your finances. It can usually arise from financial situations that you encounter in your life.
Question: What financial lessons can you teach kids?
Answer: There are many lessons that kids can understand. Start with saving. This is usually the first lesson you can teach them. As they get older, you can teach them how to spend properly, budgeting and even the use of credit.
Question: What financial lessons can help you build wealth?
Answer: Of all the lessons that you will encounter, it should involve something that can help you multiply what you already have. These include how to increase your income, savings, and investment. But you should also consider lessons about budgeting and smart spending. These can also compromise the growth of your wealth so make sure you are practicing the right habits.
Question: Why are financial lessons important?
Answer: These are important because they help you make the right decisions. Most of the time, it is our financial decisions that will make or break our wealth. If you are knowledgeable about your finances, you can confidently make the right choices that will lead you towards financial abundance.
Question: Can financial lessons keep you from debt?
Answer: Yes it can. More importantly, these financial lessons can help you utilize debt to your benefit and not your destruction. In our society, living without debt is usually not an option. You have to learn how to use it to your advantage – believe it or not, there are benefits to using debt. For instance, it can help you buy a house at a low-interest rate.