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Managing Money Matters to be Financially Stable



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By: Gynn Flores

 

Managing MoneyThe quality of our life mainly depends on our finances. If we make good, we can afford the luxuries that money can buy like a nice house, a posh car, good education for our children and grand holidays. Oftentimes what we see is not really the real picture. There are many people who are living a grand lifestyle that are also suffering from a lot of financial burden. It will even cost them everything with just one wrong move. Do not let this happen to you. Living a simple life is more relaxing than chasing payment due dates. Be aware that financial stress can make you sick and can cost you not only your fortune but also your life. Apply the following tips to attain financial stability:

  1. Live within your means. Discipline yourself not to go on impulsive buying. Spend only for things that are necessary. Never use credit facilities for luxuries like going to an expensive holiday. That can cause you a major deficit spending. Interests on credits can eat up your savings and sometimes even your budget for the basic necessities. When this happens, resist the temptation to make some more credits – which will definitely lead you to bankruptcy.
  2. Save for the rainy days. Set aside a portion of your earnings for savings. 10% is very ideal.  Never touch this as much as possible as if the funds are good as spent. Secure your savings by depositing in a trusted bank with guaranteed insurance in case of calamities, going out of business and inflation.
  3. Maximize your potential to earn. Endeavour other options to earn but do not let your main source of income suffer.  An example would be an extra 4 hours part time job on top of your main job. Getting online jobs such as writing during your free time is an option – if you have the skill. This can be added to your savings or you can even spend it for some luxuries like dining out with your family or buying some signature items that will boost your confidence.

  4. Live a healthy and balanced life.Work is mandatory. However, never deprive yourself withenough rest and sleep to allow your body to rejuvenate and re-energize for the next working day. Pushing yourself to the limits can make you sick which in turn can make you miss your work. Remember that most diseases occur when the body is abused. Eat nutritious foods and nurture your body with healthy recreations like sports, exercise and other forms of socialization.
  5. Learn from the mistakes of others and listen to the advice of experienced people. Making the same mistakes as your colleagues is not a good mental indication.
  6. Maintain a good credit standing and a good reputation. This will allow you to avail of financial facilities when you need them for concrete businesses.  It is not bad to resort to personal loans and credits when you have a sound business plan that has good earning potentials.
  7. Choose your battles and avoid taking too much risk – especially on matters that you know nothing about. Aggressiveness can cost you everything and recovery period can take a whole lifetime.
  8. Do not put everything in one basket. If you have some extra money, do not invest everything in one project. Leave some for savings where you can always turn to when you fail.
  9. Make some sound investments in areas that you are knowledgeable of. Investments can make you earn extra or can make the value of your money increase in time. Examine each offer or opportunity well before signing the contract. Deal only with a reputable institution.
  10. Be ready for old age and impart to your children and life partner the lessons you learned in handling money. Reward yourself with a comfortable retirement plan so that your good life will serve an example to the younger generation. Being a role model is the best teacher for others.

The list can go on and on but following the given guidelines above can make your finances very stable. Crisis happens every now and then but being ready tocope at any time is the best security you can ever have. The grief and sufferings over sickness, loss of a loved one, calamities or fire are manageable when you are equipped with the essential resources to continue living despite the odds – and personal loans can make life difficult when you go overboard. Life is a transition so there is also no need to be paranoid about anything at all.

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