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Eliminating Hindrances to Prosperity


By: Elena Grace Flores


ProsperityBeing financially ignorant is the number one hindrance to prosperity. You may be earning well these days but you earnings can also disappear at one when you are not careful. Learn to be smart with your finances. Reach out and strive to be informed with what you should do with your earnings. Here’s how:
•    Talk to financially stable people around you and learn from their experiences. Seek opportunities to ask for their advices concerning ways on saving up and investing money for the future and in spending wisely.
•    Search and read articles about financials. Look up for keywords on the internet such as wise spending, savings and investments. Learn from these articles and apply what you learned into your own financial situation. Read also relevant books that you can find in the bookstore.
•    Attend seminars with topics on finance and investments. Raise questions when things are not clear to you. You will get first hand answers and you can learn faster this way.
•    Visit a bank and talk to account officers on what they can offer for your extra funds in terms of savings and possible investments.
•    Do not settle for one opinion only. Ask for second, third and possibly more opinions and come up with a good decision on how to keep or invest your money.

Have access to updated financial security or investment information and facilities available in your area. Do not just settle for ordinary savings methods in the bank as most types of accounts do not yield high interest – a meager 1 or 2 percent annually. Money market can yield you as much as 44% per annum but you have to know what stocks to buy. Another hindrance to prosperity is spending beyond your capacity to earn. This should be avoided because deficit spending can cripple you instantly and it will take time for you to recover – if you ever will. It can entice you to avail of numerous credit facilities thus stressing your budget out for the coming years. In addition, stay away from the following:
1.    Impulsive buying should always be avoided. It will just make you purchase things you don’t really need. They usually end up accumulating dust in your household or just sitting in your closet for a long time.
2.    Do not be envious with the luxuries of people around you. Avail of it only when it becomes affordable. Forcing the issue by availing credit facilities just for luxuries will bring you lots of troubles.
3.    Spending before the expected yield is achieved must be discouraged. Never spend money that is not yet earned. With the availability of credit card facilities, we tend to charge expenses for our upcoming income to settle. When the money is not generated as expected, the credit will be extended thus incurring more charges including hefty penalties. Most credit card companies charge 3.5% per month for interest of unpaid balances alone.
4.    Do not invest without concrete business plans. Major business failures can be avoided by preparing a comprehensive business plan prior to investing hard-earned money. Engage people with vast experience and expertise in doing this together with actual market survey.
5.    Availing of loans with sky high interest rates is a killer. Know that you are like committing financial suicide when you resort to this during emergency. Know your option beforehand with finance facilities like collateralized bank loan for future needs.
6.    Do not be negative with all the possible means. When you see an opportunity to earn without monetary investments, take advantage of the situation. You can invest your time, know-how and talents and you’ll be on top of your finances again in due time.

Being financially stable is a big achievement. It is the key to a stress-free living. You will also see that when the quality of your life improves without debts, frictions with family members will also diminish. You can also have the chance in helping important people in your life when you have the resources – in terms of money, time, experience and values learned. Avoid any forms of cash advances and you will eliminate the hindrances to prosperity.

Image Source: Justin Peter

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