Get Some Peace of Mind from Financial Problems


Among the most persistent concerns that haunt us most of our waking hours and even prevent us from sleeping are financial problems. Instead of money, allowing us to enjoy our lives, we could not have fun because we’re constantly worried about money.

This is the case for many of us because society is always pressuring us to spend. While we are encouraged to work hard to get good salaries, it seems never enough no matter what salary we have. There are so many things to do, so many things to buy. We take out our card to compensate for what we don’t have yet in cash. One day, we realise that all our salary is just going to our bills, bills that are just piling up. And we pay them up until all our hairs have turned grey, and we even use up our retirement benefits on these never-ending loans.

It’s not the way to live. To have some peace of mind from financial problems, here are a few things you could do while you are still young, with so many opportunities available to you.

Get rid of high loan interests.

There are different methods to lessen your interest rates so that you would have more money to pay off the principal amount. The first would be to go for debt consolidation. Instead of paying all the banks and moneylenders, you only need to pay one creditor. You must choose a creditor who could offer an interest rate less than what you would be paying all those loans separately.

Another way would be to pay fast the loans with the highest interest rates while paying the minimum for your other loans. You work your way down from the highest interest, not based on the amount of loan you made.

Use your loan credit wisely.

Take out a loan only when it’s needed, like when you have a health emergency. If possible, make your loan earn you money. You could, for example, get a housing loan and rent out a room or accept transients. That way, you could use the money you earn from rentals to pay off your loan.

Don’t take out a loan to satisfy temporary caprices. Live a lifestyle well within your earnings. You don’t need to upgrade your gadgets or your car every time a new model comes out. When you travel, you don’t have to book luxurious accommodations and transportation. It’s very tempting to compete with your peers, but you never know how much debt they’re in as well to maintain their image of affluence.

Invest your savings.

Instead of making your money sleep in a savings account, look for opportunities to increase your income. Check out established companies if they’re selling stocks. Invest in bonds if you’d want to lean on the conservative side. If you have enough capital, find businesses that would earn you passive income. Shares in a hospital or a pharmacy, for example, are good investments as these businesses rarely go bankrupt. You could also invest in properties whose value would appreciate over time.


Minimise the cash you carry.

Although people find it inconvenient to carry cash around and bring credit cards instead, you’d be able to control your spending better with cash. The cash you carry should be enough to pay for your daily needs. If needed, have a separate wallet for emergencies. Make a weekly or monthly budget. Don’t take out money beyond what you’ve budgeted.

Use your credit card sparingly.

A study has shown that the stress on credit card debt is higher than student loans. The credit card has become an extra pocket for the money you actually don’t have. Leave your card at home so that you’re not tempted to use it every time you see something you like. Take note of establishments that only accept cards and schedule your visits to these stores.

Do simple bookkeeping for your expenses.

Some people hate keeping tabs on their expenses. They feel like they’re stingy to their selves. They believe that they should just be enjoying what they’re buying with their money instead of thinking about the expenses. Having a list of your expenditures and an idea of how much it is vis-à-vis with what you’re earning doesn’t necessarily mean you can’t enjoy what you’re spending on. It just gives you an idea of where your money is going. Have this motivate you to control your spending on unnecessary things.

Financial freedom is a major goal for many young professionals. But it’s not just a matter of getting a high salary. It’s more of how you could manage your finances well. It doesn’t matter if you’re earning a lot if your expenditures are also high. Be wise with money so that it works to your advantage, not make you a slave.

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