Categories
Money Management

Are You a Slave to Your Debts? Get to Know How to Achieve Financial Freedom

Mortgages do not apply only to houses; the term can be applied to financial matters in general as well. For example, if you ask for a loan to buy something, you’re putting your financial freedom in risk. Basically, a mortgage will be applied for your future incomes, since you’ll have to pay a certain amount of your total salary to solve the debt. Therefore, whether you want it or not, your finances are greatly affected by the decisions you made today.

If a loan isn’t conceded, some people get mad because “they can pay for it”. There are cases where people are rich, but poor in other aspects of their life.

Slavery is thing of the past, but in this century, there are ways which it keeps showing up, and they affect all of us. In the modern-day, slavery presents itself as your debts, but there’s a difference: you become a slave to your debts when you do not learn how to manage your money properly.

When it comes to investing, every decision you make has its ups and downs; therefore, there are debts which are not bad, they can become something greater if you know how to handle them. For example, many people do not have enough money to buy a house, which is why they ask for a loan. Not everything is lost, though. Through this post, we will tell you some facts about financial freedom and how debt can affect your economy.

Have you seen some of those commercials on TV –or online–? They often convince you of buying things you don’t need or don’t have enough money for. Therefore, you end up wasting money in things which are unnecessary or finding some ways to get the latest car, for example. You can think of it as some kind of “trap”, and most of the time, we fall for it because we are driven by greed and envy.

Emotional Stress, Bankruptcy, Finance.

It’s not a bad thing to buy things for yourself; you are working for a reason. However, there’s a certain point in everyone’s lives when you come to the realisation which you’ve soaked yourself in debt, and finding the way out seems a bit too hard in the moment. When this happens, it means you have lost financial freedom.

We have mentioned the term lots of time, but what does it mean exactly? Having financial freedom means you are capable of not taking financial risks; therefore, you know how to save your money. When it comes to saving money, those who spend a lot are in the same position as those who are just saving it without a purpose.

Having the ability to manage and use money in a way which affects in a positive in the long-term is also part of having financial liberty. Therefore, you should follow certain steps and get rid of some habits which affect your economy greatly, such as not planning your purchases, not having enough communication with those you live (for example, a spouse), and more.

Many of the problems which are related to a bad economy are due to the lack of financial culture within people, but this problem is easy to solve. You should invest a certain part of your money to educate yourself about how to use your incomes wisely. If you don’t have a way to do it, then spending some of your free time researching could help as well. Many of the articles which you can find in our website are meant to help you manage your finances.

Categories
Savings

Why Should You Be Saving Money?

Have you ever stopped one second to think about why you should save money? At the end of the month, when you have finally covered all your expenses, how much money do you have left? Most people don’t know, but it is important to think carefully about the reason why you are saving money. Knowing your financial goals has vital importance because if you don’t, you are going to waste too much money on things you don’t really need.

Even if you have only one pound left at the end of the month, you should be thinking about how you can use it in the short-term. Saving money without a reason will leave you in the same place. If you don’t think about it carefully, you will either being the stingiest person ever or will end up overspending. If you haven’t come up with a reason yet, then through this article you will learn about why you should be saving money.

Life is changing constantly, and so we are. We do not have the same needs we had five years ago. When things are going good, we usually stop thinking about the future and live in the present too much. While there is nothing wrong with it, our financial future depends very much on the decisions we make today. Therefore, one should be thinking about why we need to save money.

Let’s begin thinking about some situations. For example, you are married and your spouse requires of an expensive surgery. People who like to save money thinking about what can happen in the future can probably sort this out quickly, and save their loved one’s life in no time. However, things change for those who don’t really think too much about the future and live in the present too much.

For these people, it is necessary to tell them something: money does not equal happiness; it should be used to solve problems. To solve problems like the one from the example, life insurance can come in handy (since the younger you acquire it, the less you pay for it). When you think things carefully while you still have time, you can save yourself from many headaches and stress-related problems.

Inserting a coin into a piggy bank

Therefore, knowing how to spend your money is important. Something which money should be used for which is also of vital importance is education. Lack of general knowledge about financial matters is one of the reasons which put people in such a difficult situation.

According to experts, between the ages of 25-50 people accumulate debt. During which time, your financial situation will depend on the decisions you’ve made in the way, the possibility of saving money and using it to fulfil other necessities or to use it for other purposes is high.

Between the previous timeframe, it is very likely which you will hive high incomes, depending on your work conditions. Due to this, you should think about ways to manage and invest your income, in a way which allows you to use more resources for your financial goals, and it should also help you to solve the debts you have accumulated through the years.

When you know why you are saving money, you become less of a spendthrift. This means which you’ll stop buying recklessly, and your ability to handling other aspects of your life will increase as well. When you finally improve your money-managing skills, you will see the positive results in the short-term. It isn’t hard to start, all you need is patience and a strong will. After some practice, you’ll see things changing.

Categories
earnings

How to Stop Spending More than What You Earn: 4 Useful Tips

Due to today’s economy, it is important for all people to learn how to manage their money. It seems which things are going to get harder in the future, with many families and people not being able to cover their necessities and expenses how they should.
When it comes to saving money, many people thing they have all the answers. Therefore, it is easy to repeat patterns and keep on spending too much money while at the same time, we lie to ourselves. Before starting this article, there are certain characteristics of a spendthrift person which you must be aware of:

1. These people usually do not care about searching for more ways to receive income. Therefore, they end up spending more money than they already have, usually by using a credit card (or multiple ones).

2. One thing which spendthrift people think all the time is they need to buy ‘the better stuff’. They don’t waste time looking carefully at the product they are buying, they just do it because ‘it is expensive, therefore, it should be of good quality’.

3. Spendthrift people are commonly attached emotionally to purchasing. Therefore, they feel relaxed when they’re spending; the more, the better. It helps them to relieve their anxiety. However, they end up wasting too much money in things they do not need.

There are more characteristics, but one of the most prevalent ones is they like to spend a lot, no matter what it is about. Whether is money, food, clothes, etc. they end up wasting so much money which in the end, they realise how much debt they have when it is too late. Avoid becoming a spendthrift; you should learn how to stop sending more money than you already have. The following tips are very useful:

1. Keep in mind which your main goal is to save as much money as possible; therefore, you must analyze your current financial situation. Separate everything in things which are needs, and things which are not. To stop spending money on things you do not need is a great step.

2. Teach your children how to use their money properly. Kids must learn people not always get what they want. You should not be hard on them, neglecting them only will cause them trauma. The lesson you’re trying to give them is parents are not a bank account.

Teach your children the value of money.

3. Your purchases should be planned with time. Before going grocery shopping, for example, you should make a list of all the things you are going to buy. This way, you can have an idea of the sum you’ll be spending and will end up saving some money. Even if the amount is not high, saving money will help you to have a better financial situation in the long-term.

4. Talking about lessons: you should not be awarding those you love, especially your kids, with material things. Emotions have a higher value than all the things in the world and you can make them feel good about themselves without having to recur to money. This does not mean you shouldn’t surprise them with a gift every once in a while, but don’t make it a habit. It’ll cause you to spend more time than you have.

With all of this being said, there are a lot of other ways to stop wasting money, it is just a matter of putting them into practice. After seeing the results, you will be pleased, and your quality of life will be even better.

Categories
Spending

Bad Habits Which Make You Spend More than What You Earn

One of the most common mistakes -and a very prejudicial one – is to spend more money than what you are currently earning. When you do this, you are making your debts increase incredibly fast month by month. Unless you find a way to stop it, you will start seeing the consequences of bad management in a short while.

When you think about it, it has happened to all of us at least once in a while. You get your salary, and in two days -or less- it is already gone. What will you do for the rest of the month? Where will you get the money to pay for your needs? Most importantly, people tend to start using their credit cards recklessly once this happens without thinking about the consequences. This puts your whole life at risk, and you should be thinking of what to do when you spend more than what you earn.

To start this article, we will take a look at the common bad habits which people have when it comes to their money. Therefore, their finances are greatly affected and they find themselves in a very hard position very soon. When you stop for a while and think things carefully, everything will have a better outcome. Not everything is lost. Let’s see:

Most People Don’t Make a Budget

Let’s face it. Most of us end up spending more money than we have because we do not make a budget. It does not matter what you are trying to buy: we must know how much we’d be spending. Most people certainly don’t care about it, and end up exceeding their total funds.

Young woman with laptop and credit card outdoors. Internet shopping concept

When you make a budget, you will know how much you are spending or earning each month, since it needs to be updated constantly. Therefore, you will have a better financial situation. However, there are many people who don’t put this into practice and end up in the same old habits. Each time you buy something, you should write it down. Hence, you will be putting your budget into practice.

Bad Communication

If you have a spouse, then it is very likely which you both are sharing your expenses. Sometimes, one of them relies economically on the other, which means there is plenty of room for overspending.

People who live together constantly tell each other what they should be using the incomes for, but this does not mean they are doing it properly. When you start living together with someone, you should be deciding together which priorities you have. Therefore, you will know which each other’s needs are, and how to spend your money.

Every time you go shopping, you must decide how much you’re going to spend and what you’re going to buy. This does not apply for couples solely; this should be put into practice by everyone!

You Use a Credit Card Recklessly

When it comes to credit cards, most people think it is an amazing idea to use it constantly, but when they start using it, they pay little attention to how much they are spending. When you use credit cards this way, you’re putting months -and even years- of debt in your shoulder. Therefore, what we recommend is to stop using credit cards.

When you are aware of how much you earn, and what your necessities are, then you will be able to make a proper budget to help you with managing your incomes. Some time will pass until you see how better things are after getting rid of these habits.

Categories
Spending

What Should You Be Spending Your Money on to Be Happier?

When it comes to money, there are certain people who are obsessed with getting rich, while others are struggling to survive. There is one thing people can be sure of: spending money recklessly won’t bring them happiness in the long-term. There are many people out there who believe which an enormous amount of money equals permanent happiness. Things do not work this way in the real world.

If you currently have a great salary or own an amazing business which brings you several benefits, you should know what you can do with your money has more importance than the total amount you are spending. If this is your case, you should know more than one person would like to be in your position. In the modern world, things are not as easy as they seem.

People have a wrong idea about progress. They think which the most zeros to the right side you have in your account, the more successful you are. They often tend to compare their progress with other people’s success to see who is greater, which means, according to several people around the world, if you have more money than one person, then you are more successful than them.

However, what will happen to your money when you pass away? Will you be buried with your total funds? Do you want to be the richest person in the cemetery?

To this point, you already have an idea of what we are trying to say. In fact, according to several financial assistants, most rich people have no idea of what to do with their money, less they know about where to invest it. If this is your case, or at least you’re following said direction, through this article we will give you some advice which may be helpful for you to learn how to spend your money in things which matter and will bring you happiness in the long-term.

There are certain ways which you can spend your money, and they can bring you plenty of positive emotions in the future. The memories you make doing certain activities, the feelings they evoke on you, which is what matters the most, are more valuable. After all, buying something comes with the risk of losing it. However, if you spend your money on experiences, hobbies and more, it is very likely which you will be telling stories about how you felt back then to people in the future.

There are many recognizable figures in the lists of most rich people around the world. They are known for spending a certain part of their money in philanthropy. Most people think of it as a marketing strategy or a way of “cleaning their public image” and appearing “nicer” to the public. However, in most cases, the reality is very far from the previous statement.

Most of those people are in the same position; they do not know what to do with so much money. Like we said previously, memories last forever. It is very nice to help someone and see how much your support has helped them to be successful. This is another way which you can use your money if you still you have no idea of what to do with it: to support people’s development and well-being.

Whether you have earned your current position by effort or without it, you should still think about what you can do with it for you, and the world. Having lots of zeros in your account will not bring you more happiness, for sure.