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Thursday, 3 October 2013

How to be financially secure

Filed under: Personal Finance |
Money is always a major cause of concern when it’s come to solving financial problems. Learning how to ease your financial problem may not be easy, but developing this ability can not only make you happier, but more financially secure. When you can see your financial situation in a clearer light, your decision become much easier. Here are a few guidelines to help improve your financial success.
According to personal finance experts, Identify your problems. In order to solve your financial issues, first you need to assess your situation realistically. Denial or uncertainty are both big stressors and can have huge effects on your mental state. Examine bank statements, credit card bills, any debts and open accounts, and assess your exact standing.
Also, determine which habits are causing problems. Money is so often tied to emotion, and it’s important to take a long look at what drives your anxiety. Perhaps your value of money is to indicate status, or compensate for a feeling of inadequacy, to show others how much you care, or even a product of attitudes formed in childhood. Find out what your emotional connection is to money, and understand the way this affects your values and actions.
Good financial Communication among partners is another issue you need to look into because it’s applicable to marital financial crises. Being deliberate in expressing concerns and staying open with your spouse is crucial to alleviating stress. If there are problems, solving them together instead of hiding important details from one another is a much healthier way to approach your finances. Be clear about both of your values and understandings of money and beliefs.
Again, be strict in budgeting, that is, you shouldn’t allow your budget to be flexible. Once you understand your situation and your approach to your finances, it becomes much more clear where and how you can cut back. Part of this is having a fairly rigorous budget, which may be difficult to adapt to, but provides more security and peace of mind than failing to plan. If you know what bills and expenses are coming your way, you won’t be taken by surprise by an expense and scrambling to make ends meet.
When unexpected expenses do come your way, like car repairs, medical bills, and the like, having an emergency fund provides extra security and never leaves you feeling unprepared.
Perhaps one of the most important ways to reduce your stress is to live within your means. Commit to spending only what you can afford, and don’t allow your value of something to be less than its price. This may mean downsizing your living situation, indulging in fewer expensive items, or re-thinking that new car you’ve been eying, but your financial troubles become manageable if you reframe the way you think about money.
By: TIAMIYU ADIO ISMAIL

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