adsense

Friday, 7 March 2014

Trying to fix your debt would help you manage spending


  Filed under: Personal Finance |
 
Think about what you’re doing with your money. Many people spend money unconsciously, simply outlaying money for their day to day activities. If you stop and think about your debt, your spending will get better as fixing it now will help your tomorrow.
Without a plan or financial goals, you’re headed down the road to digging yourself deeper into debt. A spending plan establishes goals and principles. If your goal is to save N500, 000 for an emergency fund, then you need to avoid more debt along the way.
Keeping up with someone else. Your neighbor just pulled into his driveway with a new KIA sportage 2013 model, and you immediately think about buying the new Toyota Landcruser 2014 model. But it doesn’t stop there. Your brother tells you he just picked up the latest phone in town, and you think about buying the one that is more expensive than the one he just bought, that you  really don’t need. People do this to themselves because they don’t want to feel they’re missing out on the goodies of life. But what they miss is the facts about financial management. If those kind of people are living on credit, you will never know because you’re so deceived by their life style. Take a step back and assess the real reasons behind your newest impulsive purchase, and then take action.
Some people lack discipline. Just as they think about purchasing a new car because their neighbor recently bought one, hopefully you have enough restraint to consider the impact on your spending plan. If your goal is to get out and stay out of debt, then discipline will play a major role in your daily financial life. Financial discipline will help you assess your goals and consequences when faced with a decision that could potentially take you off the plan. Discipline is your friend. Embrace it.
Buying a new car every year. Your neighbor bought a new car? Well, let’s just say you’re about six months from paying off your current vehicle, but you’ve now convinced yourself that it’s time to get a new car because you think you deserve it. Right?
Good! This is a main reason why so many people dig in and remain in debt. This is time for you to decide what’s more important to you, living a debt, free life or cruising in the latest model.
For some people, credit is their cloth, they cannot live without living in debt. They became so addicted to their credit card that they hardly recognize their spending plan anymore. That’s make your life largely financed by debt. This is the reason it’s driving you crazy and it will certainly cause many sleepless nights ahead.
For you to get out of debt, it requires a strong but realistic spending plan that you can stick with through the end. Forget keeping up with everyone else, and cut up your credit cards. Spending your time trying to impress people who don’t factor into your bottom line is a waste of money and will impede your financial goals. Assess your financial goals, and decide if having a new car is truly worth the money spent. Remember, it’s no fun being stressed because your finances are out of control. Take control now, and enjoy the fruits of your efforts along the way.
TIAMIYU ADIO ISMAIL

No comments: