Dr Richard Stephens
In our day of easy access to credit cards, loans and so many things that we must have, it is no wonder that so many persons are getting themselves into financial trouble. Everywhere we turn, we face some advertisement that tells us we cannot live happy unless we have such and such a product or service. The demands are frequent that tell us we just have to have the latest or the best. Could this be the reason for the financial troubles that so many, and maybe even you, are experiencing today?
Here are six tips that will help you to avoid that trap of financial indebtedness.
1. Live within your means:
Good finances starts with a bit of self-control, this means that you need to make a decision to buy those necessary things first and learn to say “No” to the rest, at least until you can comfortably afford them.
2. Trying not to get too much too fast:
Many financial problems seem to start right here; young people want what their parents have, and they want to enjoy all those comforts right now. However, it seems that they fail to realize that it took their parents many years to get where they are now. They do not seem to understand that great part of having a comfortable lifestyle is to do it without a lot of debt.
3. Develop a Budget:
A budget is one of those things that people use who, do not have unlimited spending resources and want to stay out of debt. It gives you a means to control effectively one of your greatest personal resources, your money and allows you to use it most successfully.
4. Don’t forget about comparison-shopping:
Even if you are rich, you probably have a need to save on money somewhere. Through doing comparison-shopping for many of your purchases, it can help you to save money on a regular basis. Sometimes we want some things so bad, when we see them, that we feel we must have it right now even if the store across the street might have it for sale at 50% less.
5. Always control your Finances:
A simple thing that many people fail to do is to seek to set their finances in order in such a way that they know where the money is going. If you ask this question regularly, ‘where is all my money going?’ then this is probably true for you. People who start keeping a record of their expenses often end up being surprised at how much they spend on small things.
6. Must have savings for future Needs and Wants:
Every now and then, a little unexpected emergency can come up for which we need some money on hand. Whether it is a medical reason or just a trip, having some cash set aside can provide for some great opportunities and unforgettable moments. Each month at least five or 10 percent of your salary should be set aside for closer goals and some long range ones, too.
