Every human is faced with financial concerns which are ever present. We cannot turn a blind eye to the fact that we are surrounded by the uncertainties of today’s economy. Worrying alone doesn’t solve much instead, it can add to the existing problem. Hence, one needs to have a plan to manage financial challenges and it will help to ease some of the stress. Thinking of the monetary benefits of dealing with financial problems, that is, paying of bills, reducing debt and saving more – these alone can help you to improve your overall outlook.
It is risky to spend when you do not have the means at the moment. Any man who is in debt is a slave to the creditor. Imagine living this life that was freely given to you as a slave because of a debt. You see people going around driving cars purchased on credit. You get to find out that this set of people become frustrated and depressed because they cannot make up to pay their debts. Some people just want to impress others thereby sponsoring a lifestyle that they are not qualified for. Some people even borrow money to pay debts and they unconsciously live their lives in debts.
To be financially free, avoid wearing clothes on credit, even celebrating one thing or the other with the belief that one will pay should be avoided. You have to master the act of being disciplined, contented and goal-oriented. Any man who has mastered these skills will have the ability to subdue every undue influence and desires that are not far from us. Peer groups, mentors, friends, social media, and even family, can make one go the extra mile which can land us in debt.
Any man who wants to go far in life will avoid a life of debt and spending more than his income. Every successful man today has conquered the spirit of debt and financial bondage, and gained freedom. This freedom never happened overnight but by a conscious decision and a consistent lifestyle of contentment and discipline.
To stay consistent and become free from financial debt, you must identify the source of your financial stress. If you are being weighed down by financial anxiety, you need to start by identifying the specific issues that are giving you restless nights. You need to write down your biggest money challenges; keep the list short to help you feel less overwhelmed. Revisit your list every three to six months or as your circumstance changes.
You can also create a monthly budget. This helps you to take control and understand your finances. Budget makes you avoid unnecessary spending and also helps you save for the future. If you know where you are going, your spending habit will change. You have to start with your net income. Write down all your expenses. Set up to get an alert if your balance falls below a certain level.
Once you have a priority set out, you won’t spend outside your income. Your income may not be much but you will realize that you are comfortable. Categorize your spending into needs and wants; itemize your spending pattern to identify ways to save daily.
You can also build an emergency fund. This fund can be used for emergency repairs, illness, job loss. Setting aside emergency fund may be difficult especially when you have so many expenses to cover but you do not have to get hung in the process. What is important is the consistency in setting aside the money.
Also, you must be strategic about reducing debt. Ensure you do your best to live within your means and are not stretched more than your income. Do not be in a hurry to buy things; strive not to live on credit. People that live on debt are financially stunted. They spend their limited income servicing avoidable debt.
Financial freedom is a consistent action, deliberately taken by the individual in order to be free from financial debt. You cannot desire to be great and still stay in mediocrity. Your mind needs to be transformed in order to be able to capture what you picture in reality.