Money is intrinsic to most of life’s essential needs. It is our universal exchange system; it measures the value of our goods and services and provides security and certainty for our future. However, despite this, most people still do not manage their finances very well, if at all.
So, what are the consequences of not managing money?
Here are just a few:
• A life fraught with money problems.
• Not having the financial freedom to do the things you really want to do.
• No security.
• Tied to an unpleasant or unsatisfying job, simply because it pays the bills.
• Envy of others who have more than you.
• A restricted lifestyle.
• Lack of choices.
• Reliance on social security after your working years are over.
• Inability to be proactive in your life.
The only way to overcome money problems is to start taking matters into your own hands. You must become proactive and take some immediate remedial action.
You cannot change your financial past but you can change your financial future. Constructive change will only result when you decide to take control of your circumstances. Here are some of the benefits of managing money:
• A strong inner feeling of safety and security, knowing that your future is provided for.
• A happy life, full of choices.
• Doing the work you want to do.
• A stress-free life. There’s nothing more stressful than having severe money problems. It stops you from performing well in other areas of your life.
• Financial independence gives you the freedom to make life choices. You deserve to live the life you want.
• A feeling of peace and security.
Empirical studies have show that that along with job satisfaction and fulfilling relationships, being financially secure is one of the major factors that delay ageing and prolong life.
In Ageless Body, Timeless Mind, Deepak Chopra lists the positive and negative psychosocial factors that gerontologists use to predict longevity. Financial burdens and being in debt are listed as “negative factors that accelerate ageing” and feeling financial secure and living within your means are listed under “positive factors that retard ageing”.
As research has proven, learn to manage your finances and you can look forward to a long, prosperous and rewarding life.
By: Ann Marosy
Posts Tagged Money Problems
It is important: understanding your current personal finance situation is something that every person needs to do. By understanding what is going on with your personal finances you will be able to better control them. This can be one of the best ways to avoid money problems and debt.
Getting started is the hardest part. It can seem almost impossible to figure out where to begin when tackling finance issues. The best place to start is to simply look at expenses and income.
As the staples of a good budget, something every person should have, expenses and income are the main financial issues a person needs to understand. To begin you should gather all the relevant information. You may want to get bills, pay stubs and anything else that could help you list out your expenses and income.
The first thing to do is to track your daily expenses. This includes eating out, shopping and gasoline. You want to include these on your expenses list. You may need to gather receipts or actually keep a log for a week to be able to come up with an accurate account of your daily expenses.
Write out a list of expenses and then write out your list of income. At this point you should concern yourself with ensuring everything is listed. If your expenses or income vary then try to get a good average. You should have expenses separated into daily expenses and monthly expenses so you can see where your money is really going. Plus this will help when you go to budget your money.
Now you can begin to look at your debt. You should make out a list of your creditors. Your list should include the creditors contact information, the balance of your debt and the interest rate.
Now you should look at your personal finance accounts. This includes things like checking, savings and stocks. You want to list them all, including their current value or balance.
After going through your expenses, income, debt and personal finance accounts you should have a fairly good idea of where your personal finance matters stand. This should be a great platform for you to build upon to get your personal finances in good order. From this information you should be able to create a budget, get debt under control and best manage your personal finance accounts. You should be able to get the big picture about your personal finance situation and to understand it completely.
By: Joseph Then