Let’s face it! Everyone wants to be financially stress free in life. Unfortunately, it is easier said than done. When it comes to financial matters, spending comes naturally than saving. Our desires for things are endless. In other words, we never feel contented. We always yearn for things that we do not have.
With such high demands on things we want to acquire, we can tell ourselves that the money we will be receiving will just fly away fast the moment it landed on the palm of our eager hands. We already know where we are going to spend our salaries even we do not have yet the physical money on our hands.
When we become overwhelmed with our intense desire to purchase, we fall into the trap of borrowing money. We get confident that we can pay because we are going to have our salary by the mid or end of the month. Yet, when we already received the payout, we will realize that we need to pay for the tuition in schools, to buy groceries, to spend for some emergency repairs in the house, etc. And before we knew it, we don’t have enough money to suffice for the next few days or weeks.
Unless we started to become conscious of our spending, we will be dependent to the habit of borrowing money for many times. The worst problem we might encounter is when we get deep so much in debt. It leaves no choice for others but to pawn whatever they have to loan sharks for the desire to have an advanced money.
Why is it no matter how much a person earns, the amount of money he earns is still insufficient for his everyday needs?
Why do people still cannot save money after they have gotten a salary increase already?
Why do people are still in debt despite having a regular income?
These questions made me think about the cause and it led me to the main culprit, which is what we called lifestyles and attitudes towards money.
WHAT IS YOUR LIFESTYLE?
Many want to be financially successful but do not want to extend an effort for the financial freedom they have dreamed of.
Let us take an example of those persons who keep on complaining they do not have money but are always present in a gambling den. All of them in the gambling world wish that they would win and could acquire riches in an instant. However, the chances of losing are higher than the chances of winning. Isn’t it much more practical to save those pennies and make it bigger than losing it all in gambling?
There are also some instances when people do overspend on fancy clothes, glamorous bags, gadgets at exorbitant prices and dazzling jewelry. But turns out to be insensitive when it comes to those more important things like paying debts, tuition, bills and the like.
Another overspending activity is during or on special occasions. Some people are fond of being one-day millionaires splurging money according to their whims. They are too focused on the present not thinking that there is still a tomorrow. I must say that everything that is not taken in moderation is bad.
TIPS TO BE FINANCIALLY INDEPENDENT
Everyone wants to live a life which is financially stress free. Isn’t it life will be more wonderful if we don’t have this financial burdens that trouble us night and day?
The following are the tips to follow to take the stress out in our financial life.
- Know how to budget
Budgeting should never be neglected when it comes to our finances. It involves taking careful consideration on how we are going to spend our money according to our necessities. This will encourage us to think of our priorities such as food, clothing, housing, education, emergency fund, etc. Through budgeting, we can have a sense of financial directions.
- Live a simple life
The most common problem why people are financially stressed is that they spend more than what they earn. Poor financial decision-making or a lack of rational thinking pushes a person to spend money that is beyond his or her purchasing power. Knowing how much you earn in a month and not bringing your credit card when you go shopping can help not to do frivolous spending.
- Avoid impulse buying
Sales persons are brilliant. They are in that job because they know how to motivate people to buy their products. Do not let them steal your money for things that you do want but don’t need. A good way to avoid this is to prepare a list of the products that you need to buy before going to the supermarket or shopping malls.
- Use credit cards wisely
Some people run away from credit cards company believing that having those cards will just put them in huge debt. The validity of that belief relies on one’s personality. Actually, credit cards can be our best friend if we only know how to use them wisely. Use a credit card only if there is a need. Stay away from using a credit card if there is an available cash on hand.
- Save first before spending
It is just natural that whenever we receive money, the next thing we are going to do is to spend it. But it is also important that we save a portion of what we earn too. Spending without saving will be a disaster once an emergency strikes.
- Treat your gadgets and other things with care.
No matter how frugal we are, if we do not take good care of our things, it will give us no choice but for us to buy another one. So instead of buying a gadget, device, or tool for many times, why not just learn how to take good care of what we have. It will save us money and headaches too.
- Invest your hard-earned money
Financially successful people consider investing a good preparation for retirement. The earlier we start investing, the better. Whenever mom and I will spend a lazy afternoon outside, she will always tell me about one of her friends who was poor as a rat before. However, because of hard work, she is now one of the richest person in our community. What she did was, she saved some money immediately after she received her earnings and once she had enough, she would invest it in buying lands.
- Avoid borrowing money if you can work for it yourself
We have been always discouraged to borrow money from other people. If we want something and it is not urgent, we should work hard for it. Patience is the key. I have learned that we tend to appreciate more a certain product if we purchased it with the money from our own pocket.
- Fulfill your financial obligations
When the payout and bonuses are already in our hands, we tend to get overwhelmed. We would like to buy the newest phone model in the market or book a trip to a nice place. Before soaking one’s self to the luxury of having the newest gadget or booking a trip to somewhere beautiful, there is a need to consider paying the bills and debts first. In that way, there will be no room for guilt because financial obligations are met. Taking time to consider the proper budget allocations is advisable to keep away from financial stress.
10. Educate yourself and strive for a career improvement
Life is a never-ending learning process. With the advancement in technology, acquiring knowledge and skills become more accessible. This can open door of opportunities for people to earn and save more.
Being financially stress free is possible with proper planning and decision-making. It is not a matter of luck alone, but a matter of how someone is willing to put his hard work into it.
Praying and hoping that we will not have a financial burden anymore are not enough. It is necessary that what a person is hoping for should match his actions. Being envious of other’s riches will not help. Instead of comparing financial capacities with those of others, learn how to work hard and track our own expenses. Create a habit of smart and wise spending. Nothing in life can be acquired easily unless we take an action on it.
How do you practice self-discipline when it comes to handling your finances? Please share this post if you think it motivates you to live a financially stress free life.
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