How to Get a Stress Free Financial Life
In our 21st century world, it’s not astonishing to have a debt. We are constantly submerged in EMIs, credit card and bank loans. Taking loans is not a sin but your approach towards paying off the debts really matter. Because let’s admit, debts haunt us forever. Life is full of stress. Why increase another pressure! In this article we will provide you some pro tips to change your approach to debts so that you can lead a debt free happy life.
This is an essential practice to follow if you want to lead a debt free life. You need to keep a track for where your money is going. Make a budget at the beginning of each month and try to stick to the budget while spending throughout the month.
Set both short and long term goal and divide your money accordingly. Suppose you want to buy a car and the groceries. While the latter item requires immediate attention, your savings for car may wait for sometimes.
Thus while making the budget, keep an attention to your priority.
This singular feature can eradicate multiple nuisances and solve half of the problems. Most often we tend to take multiple loans to buy something expensive immediately. Credit cards are for essential necessities not for random luxuries.
Savings are also necessary for immediate accidents or for medical ground. And who can predict, you may find the expensive thing you are planning to buy to be quite unnecessary after a while! Wait for it.
Consumer survey reports that many of the potential buyers tend to buy luxurious items out of a whim. Don’t be one of them.
Now this is dangerous. Most of the people of this generation use multiple credit cards or take several loans at the same time. But they miss the fact that while paying off these debts they actually have to pay more than the amount in terms of interest. This only drains your money.
Make it a point of not acquiring multiple loans at a single time. Try to spend within your earnings. And give some time before taking another loan after just paying off one debt. Otherwise all of your saving will be drained in the debt interest.
Investment is necessary, yes. But every investment is not for everyone. Don’t be shy to take advice from your bank manager who can guide you which investment is befitting your purpose and earning scale. Investing in Real Estate will require more amount than investing in short term plans.
Mutual funds are really on hype now a day. It is indeed a great plan since it involves multiple investors and therefore the burden is not only over your shoulder. But take the suggestion of a good advisor board to invest your money in proper fund. Don’t waste your hard earned money.
Say No to Whim Buys at Counters
This sounds funny but this is the issue that is draining much of your bank balance. Have you noticed those little items, ranging from chocolates to beers, toys to snacks, dazzling ornaments to toiletries, desserts to accessories are arranged neatly at the cash counters of the shopping malls? Why do you think they do it? This is basically a business strategy. Have you ever fallen prey to these while waiting in the queue of the counter and gone to the extent of adding them to the cart and thus spending a few extra bucks on these? This strategy aims to do only that.
While this is indeed a great psychological strategy from the shop owners’ side, you should stay cautious of it. Though apparently it seems to be very cheap expenditure every time you drop by the shop, but just add the total amount you spend on these items per month and you will get the concern straight! And surprisingly these items mostly do not have much important in our daily life. Cut off these fancy products and witness your saving scales go higher.
Make Debt Your Priority
Your approach towards debt really matters when it comes to living a secured life. Lingering over a debt and not paying it off will only increase the amount you spend for the debt. Therefore do not delay to pay it off as soon as you can.
Follow these simple strategies and your life will go gaga in no time!