10 practical tips that will make you financiall stress free

10 Practical Tips that Will Make You Financially Stress Free

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.

FINANCIAL PROBLEMS

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

FINAL THOUGHTS

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. 

10 practical tips that will make you financially stress free

 

 

© 2017, Roads and Pages. All rights reserved.

Ana Rose Alvaro

Ana Rose was born and raised in the Philippines. A full-time teacher and a part-time student. She loves her simple and yet adventurous life with her wonderful family, great friends, and supportive boyfriend. Roads and Pages serves as her outlet to share what she loves to do the most in her life. Those are spending time with people who matter the most, reading books, and traveling one country at a time.

13 comments

  1. These are really helpful tips. I’m happy that I now know better how to grow my money in various ways. It helps to have a mentor for our finances. My husband and I signed up for Bo Sanchez’s Truly Rich Club. It has helped and guided us in stock market investing in the past years. 🙂 You can read more about it Truly Rich Club here: http://hudson.trulyrichclub.com/

  2. I would love to financially stress free! It’s one of my goals in life. Though I’m a single mom of 3 kids it can difficult. I think my splurges would be on my kids and even then I think of it as things they need. To be fair they never ask me for anything outrageous and I guess that’s what makes me spend for them when I can. I don’t have a credit card because I’m one of those people that can’t handle the responsibility! If I don’t have cash then I don’t buy any wants.

  3. I have to agree with you especially with the use of credit cards! I had my first card when I was 18 and I have never missed a payment since. I don’t want paying for their extremely high interest rates! I use it mainly for groceries, gas, and utility bills. This way I can accumulate points which I can then use to purchase gadgets and other items. I also get free meals most of the time. In a way, my credit cards has saved me money. 🙂

  4. I love how you mentioned almost everything enyone need to be free from financial stress. I like how you mentioned about smart crecit card usage. Avoid spending beyond your budget and staying in the loop of simple living. Invest and always think long term. 🙂

  5. I love this post. I needed this reminder. One of the things in my list right now is to improve my financial health. I feel that I have to improve on saving and putting my earnings into good investments. The proper care on things like gadgets surprisingly is true for me. I have always admired how my husband takes care of his things which really lasts and sometimes he can even resell it still a high price because of his proper and beyond care of his gadgets and things.

  6. I love this post. I needed this reminder. One of the things in my list right now is to improve my financial health. I feel that I have to improve on saving and putting my earnings into good investments. The proper care on things like gadgets surprisingly has an impact for me. I have always admired how my husband takes care of his things which really lasts and sometimes he can even resell it still a high price because of his proper and beyond care of his gadgets and things.

  7. A good article and The click to tweet going to put on my sight . I hope it makes a difference and it will help to make it easier for others to share on that platform, too.

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